Analytics, News, and Forecasts for CFD Markets: raw news — 05-11-2014.

Oil futures rose today, departing from the four-year low, as the positive data on the US labor market offset the negative reports from the Chinese.

Recall, the growth of manufacturing and non-manufacturing sectors of Chinese industry slowed in October, showed indices PMI, calculated HSBC / Markit. Meanwhile, it has become known, private sector employment increased by 230,000 jobs from September to October. It was expected that the figure will rise to 214 thousand.

Market participants also drew attention to the report on US crude stocks. US Department of Energy reported that in the week of 25 - Oct 31 commercial oil stocks rose 460,000 barrels to 380.2 million barrels, while the average forecast of anticipated increase of 2.2 million barrels. Inventories increased to a maximum of 4 July. Gasoline stocks fell 1.4 million barrels to 201.8 million barrels (minimum of 16 November 2012). Analysts expected gasoline stocks decline as compared to the previous week to 300,000 barrels. Distillate stocks fell by 724,000 barrels to 119,7,4 million barrels, up to a minimum since June 6, while analysts had expected a decrease of 1.8 million barrels. The utilization factor of refining capacity increased to 88.4% for the first 6 weeks. Earlier, analysts expected increase index by 0.3 percentage points.

Meanwhile, today intensified speculation in reducing production by OPEC. Leading oil traders believe that OPEC will reduce oil production at its meeting in November, despite the forecasts of analysts not to expect changes in the policy of the cartel. OPEC members Kuwait and Iran have stated that the organization is unlikely to cut production at a meeting on November 27. The largest OPEC exporter Saudi Arabia has not yet made a public statement on the matter, but analysts believe that the country will not cut production to maintain world prices and is ready to accept the price of oil at $ 70-80 per barrel.

The market also continues to affect the forecast decline in the economic growth of the eurozone by the European Commission. "Reducing the forecast for Europe was not unexpected, but reminded of the existence of risks. I think in this situation, oil prices should fall so to change the scope of supply. But how can cut prices, no one knows, "- said a senior analyst at CMC Markets in Sydney Rick Spooner.

The cost of December futures on US light crude oil WTI (Light Sweet Crude Oil) rose to $ 78.08 a barrel on the New York Mercantile Exchange (NYMEX).

December futures price for North Sea petroleum mix of mark Brent rose $ 0.62 to $ 83.22 a barrel on the London exchange ICE Futures Europe.

Gold prices fell significantly today, while reaching the lowest level since mid-2010, as a stronger dollar and a rise in price of shares weakened investment appeal of the precious metal. Rising dollar helped the news that rRespublikantsy won the first important victory in Kentucky and West Virginia in the midterm elections in the US Congress. This is evidenced by the results of common rapid survey of Americans leaving the polls. According to preliminary data, the Kentucky Republican minority leader in the Senate, Mitch McConnell took over his rival from the Democratic Party Alison Landergen Grimes. In West Virginia Republican candidate Shelley Moore Capito Natalie Tennant ahead in the race for the seat vacated by retired Democratic Senator Jay Rockefeller - representative of the famous dynasty of industrialists and financiers. Experts believe that the opposition Republican Party has a good chance that the results of these elections for the first time since 2006 to control the upper house of Congress.

Quotations decrease in gold also accelerated due to start technical sales after prices fell below the key support level near $ 1160 to provoke new applications for sale. Note, gold prices are under strong selling pressure in recent weeks amid speculation that the first time in eight years, the Federal Reserve closer to raising interest rates after the last month of its bond-buying program, also known as quantitative easing.

We also learned that the world's largest reserves of the gold-exchange-traded fund SPDR Gold Trust on Tuesday fell to 738.82 tons, the lowest level since September 2008. Recall that it was then, the largest US holding Lehman Brothers announced its bankruptcy, that was the beginning of a major international financial crisis.

"In the future, very few favorable factors. Despite the infusion of trillions of dollars into the economy in recent years, most central banks are concerned about deflation rather than inflation. In addition, the growth of the American stock market investors diverts funds from other markets, including gold, "- said analyst Edward Meir FCStone.

Meanwhile, adding that traders in Shanghai reported a decline in prices of local versus international. While buyers in Asia will continue to show restraint, gold prices will not easily find the bottom, analysts Commerzbank. This situation will not change even strong demand from retail investors in North America and Europe, the bank assured.

The cost of December gold futures on the COMEX today dropped to 1146.10 dollars per ounce.

Currently priced at USD1,144.70 gold continues its weakness as the strong U.S. dollar cuts demand for the safe-haven asset and physical demand failed to support. Investors' holdings in bullion-backed funds dropped to a five-year low as they are moving to riskier asset classes. The Federal Reserve, as other central banks is considering raising interest rates to help their economies putting further pressure on gold often used as inflation hedge. U.S. jobs report on Friday could also boost economic optimism and the dollar so gold could see further downside.