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Oil Price Updates

Firstly, OIL surged for a fourth day looking now like a bull market as the price corrects after a huge decline. Prices are down 50% from last June as the large operators have now cut spending (BP, Royal Dutch Shell) by lowered budgets. OIL is sitting at 51.54 at the moment as prominent experts in the field feel price will not go over $60.00.
Secondly, Greek sentiment improved with innovative “bridge financing” propositions and a back down demand for debt write-off therefore easing concerns over a Greek withdrawal from the Euro Zone. The Euro responded immediately and reached its highest levels since January 22. The US Dollar Index was hammered with the Euro strength along with poor U.S. Factory Order numbers released during the US session.
Thirdly, Stocks around the globe surged on the OIL price move and improved Greek relations with the ECB. The DOW closed up over 300 points as the mood on Wall Street was optimistic. Small cap stocks also showed gains (Russell 2000 up 1.8%) Canada’s TSX was up as the Energy Sector rose, along with Europea Stock Markets showing good gains across the board.
Finally, Earlier in the trading day Australia cut its Interest Rates as many economists suspected RBA Stevens would do. This rate cut (now 2,25 %) will have the US Federal Reserve thinking about changing its “raising of rates” as the Global economy is slowing down. Actually the Aussie Dollar had a remarkable recovery finishing the day where is opened.
Gold weakened $13.00 amid belief of lessening Global Risk especially in the Euro Zone. Investors and Traders wait for Friday’s all important non Farm Payrolls report from the United States to determine the strength of recovery in the Labor Market. This number, analysts expect increase of 234,000 jobs, could determine when and if the Fed’s Janet Yellen will raise interest rates.
News releases for Wednesday Feb. 04: New Zealand Unemployment rate Gov. Wheeler speaks Great Britain Services PMI (economic health) United States ADP (payroll company’s employment figures) ISM Manufacturing (indicates expansion or contraction) Canada Ivey PMI (indicates expansion or contraction).