This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.guardian.co.uk/business/2013/may/01/oil-china-us-manufacturing-data-weak

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
Oil price falls as US and China manufacturing data disappoints Oil price falls as US and China manufacturing data disappoints
(5 months later)
The price of oil plunged through the $100 a barrel level on Wednesday after weak manufacturing data from the United States and China prompted fears of a fresh downturn in the global economy.The price of oil plunged through the $100 a barrel level on Wednesday after weak manufacturing data from the United States and China prompted fears of a fresh downturn in the global economy.
Amid concerns that the long-awaited recovery from the deep slump of 2008-09 has once again been postponed, Brent crude futures dropped by more than $3 a barrel to just over $99 a barrel.Amid concerns that the long-awaited recovery from the deep slump of 2008-09 has once again been postponed, Brent crude futures dropped by more than $3 a barrel to just over $99 a barrel.
The fall – which followed a 7% decline in Brent during April – was triggered by weaker than expected surveys of industrial production in the world's two biggest economies and by a report in the US showing a rise in oil stocks to new record levels.The fall – which followed a 7% decline in Brent during April – was triggered by weaker than expected surveys of industrial production in the world's two biggest economies and by a report in the US showing a rise in oil stocks to new record levels.
The increase in US stocks of crude was seen by dealers as evidence that flagging global demand is affecting demand for energy.The increase in US stocks of crude was seen by dealers as evidence that flagging global demand is affecting demand for energy.
"Oil is extending the weakness that we saw yesterday. The market sentiment is being weighed down by poor activity indicators in China and the United States," said Harry Tchilinguirian, head of commodity market strategy at BNP Paribas."Oil is extending the weakness that we saw yesterday. The market sentiment is being weighed down by poor activity indicators in China and the United States," said Harry Tchilinguirian, head of commodity market strategy at BNP Paribas.
Shares and gold also moved lower after surveys of purchasing managers in China and the United States showed their manufacturing sectors flirting with recession. A separate report found that hiring by US companies dropped to its lowest level in seven months, fuelling speculation of only a modest increase in jobs growth when the official American employment figures are released on Friday.Shares and gold also moved lower after surveys of purchasing managers in China and the United States showed their manufacturing sectors flirting with recession. A separate report found that hiring by US companies dropped to its lowest level in seven months, fuelling speculation of only a modest increase in jobs growth when the official American employment figures are released on Friday.
Financial markets have rallied strongly since the middle of 2012 on hopes of a sustained recovery in the US, the resolution of the eurozone crisis and a soft landing for China. All three assumptions are now being questioned after a weak run of data that has included lower than expected growth in China, rising unemployment in Europe, and poor jobs data from the US.Financial markets have rallied strongly since the middle of 2012 on hopes of a sustained recovery in the US, the resolution of the eurozone crisis and a soft landing for China. All three assumptions are now being questioned after a weak run of data that has included lower than expected growth in China, rising unemployment in Europe, and poor jobs data from the US.
China's official manufacturing PMI dipped from 50.9 to 50.6 last month, with the weakness attributed to a fall in export orders. The news raised fresh doubts about the strength of the economy following lower than predicted growth in the first three months of 2013.China's official manufacturing PMI dipped from 50.9 to 50.6 last month, with the weakness attributed to a fall in export orders. The news raised fresh doubts about the strength of the economy following lower than predicted growth in the first three months of 2013.
News of a drop in US construction spending and disappointing results from Merck and Mastercard added to Wall Street's concerns that the economy had again faltered. The S&P 500 posted its sixth consecutive month of gains in April - the longest upward move in share prices since September 2009, and hopes that the world's central banks will continue to underpin activity with cheap borrowing costs and quantitative easing limited losses on Wall Street in early trading yesterday.News of a drop in US construction spending and disappointing results from Merck and Mastercard added to Wall Street's concerns that the economy had again faltered. The S&P 500 posted its sixth consecutive month of gains in April - the longest upward move in share prices since September 2009, and hopes that the world's central banks will continue to underpin activity with cheap borrowing costs and quantitative easing limited losses on Wall Street in early trading yesterday.
Markets are braced for the European Central Bank to cut the cost of borrowing to 0.5% on Thursday and, following last night's meeting, see no early prospect of the Federal Reserve withdrawing any of the stimulus it is providing to support demand.Markets are braced for the European Central Bank to cut the cost of borrowing to 0.5% on Thursday and, following last night's meeting, see no early prospect of the Federal Reserve withdrawing any of the stimulus it is providing to support demand.
Crude stocks in the US rose by 6.7m barrels last week to their highest level on record at 395.3m barrels, data from the Energy Information Administration showed, far exceeding forecasts of a 1m barrel build up. In the copper market, the three-month contract on the London Metal Exchange broke the $7,000 a tonne support level. The spot price of gold fell by $34 an ounce to $1,442.Crude stocks in the US rose by 6.7m barrels last week to their highest level on record at 395.3m barrels, data from the Energy Information Administration showed, far exceeding forecasts of a 1m barrel build up. In the copper market, the three-month contract on the London Metal Exchange broke the $7,000 a tonne support level. The spot price of gold fell by $34 an ounce to $1,442.
Amna Asa, economist at Capital Economics, said: "The slowdown in global economic growth appears to have hit American manufacturers in April. The ISM manufacturing index dropped to 50.7 in April, from 51.3 in March, erasing almost all of the gain seen over the first quarter and left the index dangerously close to the expansion-contraction level of 50. This coincides with the latest weakness in international surveys."Amna Asa, economist at Capital Economics, said: "The slowdown in global economic growth appears to have hit American manufacturers in April. The ISM manufacturing index dropped to 50.7 in April, from 51.3 in March, erasing almost all of the gain seen over the first quarter and left the index dangerously close to the expansion-contraction level of 50. This coincides with the latest weakness in international surveys."
Our editors' picks for the day's top news and commentary delivered to your inbox each morning.