Oil prices rebounded after the worldwide Energy Agency estimated investment in oil would slump more than 20 percent this year, a trend that would continue into 2016.
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“People are a little nervous because the macro signals are so mixed”, said Andy Sullivan, a portfolio manager with Swiss investment firm GL Financial Group, citing weak corporate revenues.
Also weighing on USA stocks, Apple shares fell 2.8 percent to $117.23 after Credit Suisse said the iPhone maker had lowered component orders by as much as 10 percent. The Federal Statistical Office reported today that September exports rose 2.6 percent to 100.3 billion euros as compared to the preceding month while imports rose by close to 3.6 percent to 80.9 billion euros.
Hedge funds and other speculators increased their futures-market bets on further dollar strength to $27.7 billion in the week ended Tuesday, more than double the $13.1 billion total long position from two weeks ago, according to data collected by the Commodity Futures Trading Commission.
The Australian dollar slipped 0.1 percent to $0.7034 AUD=D4 after earlier dropping as low as $0.7016, its lowest since early October, pummeled by both the upbeat US labor report as well as disappointing Chinese trade figures.
Goldman Sachs is reiterating its call for euro-dollar parity by year-end, unfazed by the fact that it stands practically alone in seeing such steep appreciation by the greenback.
At the last European Central Bank meeting, ECB President Mario Draghi indicated that the central bank was seriously considering expanding its bond purchase program and perhaps even lowering its already-negative deposit rate.
U.S. Treasury yields jumped after the payrolls report, with the 2-year yield US2YT=RR marking its highest level in 5-1/2-years.
“Today is about supply and concession building”.
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In the oil market, Brent crude, the global oil benchmark, was up 0.25 cents at $47.44 a barrel, having fallen for four trading days in a row. According to data published on Sunday, French auto registrations rose 1 percent in October, with Renault recovering a few lost ground while rival PSA Peugeot Citroen saw a fall.
