China, EU Data Sends Markets into the Toilet
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Weak manufacturing data and rising unemployment in the EU sent the price of crude oil and natural gas futures lower overnight. China manufacturing was also weak.
Manufacturing in Spain hit a three-year low, and data out of Germany and France was almost just as bad. EU PMI data released overnight was down for the 10th straight month at 45.1, which shows a clear, continuing contraction in the region.
The unemployment rate in the Euro Zone hit a record high of 11 percent in April.
China manufacturing activity in May slowed more than expected, at 50.4 vs. 52 expected. This is adding to the downward pressure on oil, as fears about China’s slowdown unsettle investors.
"Arguably, the direct impact on oil demand from a slowdown in China is far greater than a recession in Europe," said Barclays analyst Paul Horsnell in a note.
WTI futures broke through $85 per barrel and are heading lower, currently $84.71. Natural gas futures are trading at $2.35.
Equity markets in Europe are getting slammed, with the German DAX taking most of the pain, as the data seems to suggest that Germany’s economy is vulnerable.
(NYSE: USO) (an ETF that tracks crude oil) (NYSE: FXI) (an ETF that tracks shares in China) and (NYSE: EWG), (an ETF that tracks shares in Germany) are all expected to open lower on Friday morning.
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Manufacturing in Spain hit a three-year low, and data out of Germany and France was almost just as bad. EU PMI data released overnight was down for the 10th straight month at 45.1, which shows a clear, continuing contraction in the region.
The unemployment rate in the Euro Zone hit a record high of 11 percent in April.
China manufacturing activity in May slowed more than expected, at 50.4 vs. 52 expected. This is adding to the downward pressure on oil, as fears about China’s slowdown unsettle investors.
"Arguably, the direct impact on oil demand from a slowdown in China is far greater than a recession in Europe," said Barclays analyst Paul Horsnell in a note.
WTI futures broke through $85 per barrel and are heading lower, currently $84.71. Natural gas futures are trading at $2.35.
Equity markets in Europe are getting slammed, with the German DAX taking most of the pain, as the data seems to suggest that Germany’s economy is vulnerable.
(NYSE: USO) (an ETF that tracks crude oil) (NYSE: FXI) (an ETF that tracks shares in China) and (NYSE: EWG), (an ETF that tracks shares in Germany) are all expected to open lower on Friday morning.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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