Stocks were supported today around the world. US gross domestic product expanded at a 1.8% annual rate in the first quarter, compared with the previously reported 2.4 percent pace, lending a cautionary note on economic recovery. This data could mean that Fed might not act in a very fleeting manner as regards unwinding of its asset buying. In a keenly awaited move, the US Federal Reserve indicated last week that it would begin to taper its bond-buying program later this year. Ben Bernanke, the Fed chief told a news conference that the Fed expects to 'moderate the monthly pace of purchases later this year'.
Meanwhile, oil remains capped on the upside. Concerns over China's economic outlook are also weighing on oil after data last Thursday showed that manufacturing activity hit a nine-month low in June. China's HSBC preliminary manufacturing purchasing managers' index fell to 48.3 in June from 49.2 in May as new orders declined, indicating that the slowdown in manufacturing is worsening.
The US dollar continued to liner around its three week high against the Euro. It oil might not rise much in evening if the dollar continues to hold on. MCX July crude oil futures are quoting at Rs 5786, down Rs 9 per barrel on the day. Prices had rose to a high of Rs 5835 per barrel earlier as the Rupee crumbled towards 61 per dollar.
Source by Commodity Insights
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