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Crude falls as investors shrug off economic data

Last updated 10/18/2012 10:59 AM EST (GMT -5) 0 Comments - Add your comment

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Fawad Razaqzada

Technical Analyst, GFT

Follow @FawadR_GFT

Crude oil fell today even after the release of mostly positive global economic data. The first pointer was China’s GDP number which showed an annual expansion rate of 7.4% in the third quarter. Although still robust and expected by most economists, this was the seventh quarter of declining growth. Concerns remain that the on-going problems in the euro area would prevent the world’s second economy from returning to pre-crisis levels any time soon. In addition, there is a once-in-a-decade leadership change looming, which is also adding to the uncertainty. Investors shrugged off better than expected readings for Industrial Production, Retail Sales and Fixed Asset Investment. From the US we saw a robust reading on the Philly Fed Manufacturing Index and Leading Indicators rose, but Unemployment Claims disappointed expectations badly. As a result, both Brent and WTI extended their losses with the former breaking below its 200-day moving average at $112.50.

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About The Author

Fawad joined GFT as a technical analyst in 2010 and has since focused on timely market commentary and research for GFT with an emphasis on technical analysis. He achieved his CISI Level 3 Certificate in Investments (Derivatives – Retail) in early 2011.