The preliminary data from Germany indicated the consumer price inflation remained at 0.8 percent for third month in a row. The data released earlier had indicated a slowing in the fall of consumer price inflation from -0.5 percent for September to -0.3 percent in Spain. The better than expected performance of prices in the Europe’s largest economy together with easing of price falls in Spain suggest that the Eurozone inflation rate may not fall from current annual rate of 0.4 percent contrary to experts’ forecast. The data are due later in the day.
Today a number of statistics will be released in North America and Europe. At 16:00 CET US Consumer Confidence Index for September will be published, a slight improvement to 92.5 from 92.4 for the previous month is expected. At 9:55 CET German Unemployment figures – the seasonally adjusted Unemployment Rate and the unemployment change will become available, with no change expected. At 11:00 CET Eurostat will publish Eurozone Core Consumer Price Index yoy for September and Unemployment Rate for August. The Eurozone CPI is expected to decline to 0.3% from 0.4% while no change in unemployment is anticipated.
Brent crude futures traded above $97 a barrel. Brent for November settlement was at $97.29 a barrel on the London-based ICE Futures Europe exchange, up 9 cents, at 2:55 p.m. Singapore time. The contract climbed 20 cents to $97.20 yesterday. The volume of all futures traded was 53 percent below the 100-day average. Prices have decreased 12 percent this year. The increasing US crude production has provided a cushion against falling output in Libya as country’s output fell by 25000 barrels a day to 900,000 bpd due to ongoing strike. The market is watching the Libya production recovery from 200,000 bpd earlier in the year since Brent’s premium overWTI will likely narrow with increased Libyan output. Brent’s premium over WTI narrowed to the smallest in 12 months on Monday, touching $2.57 a barrel.
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