Good Afternoon,
Well the excitement builds here ( For me tomorrow is the last day before a week off in the Sun with my extended in laws and outlaws and kids. Should be fun. For the market the build up is to the Non Farm payroll number tomorrow with consensus being cut dramatically post the ADP number yesterday. The Slight drop in US jobless claims last week was not enough to calm fears about the economic slowdown , the optimists say that a host of temporary factors have been at play which have throwing up misleading data since the Earthquake in Japan has put pressure on supply chains and disrupted manufacturing activity dependent Japanese components .
Markets tried to rally this morning after a weak start but gave up on that idea. There is a certain amount of scepticism re the Euro strengthening or is that the dollar weakening with another Bailout on the cards and rumours re a deal on a further package for Greece. By now the consensus on Ireland seems to have shifted to a recognition that it is not the prospect of default that is going to kill Ireland but the delay in defaulting as the world realises that the Irish taxpayer is effectively bailing out the German and French banks and the ECB...
Major build in US DOE Crude Oil Inventories (May 27) W/W 2878K vs. Exp. -1600K (Prev. 616K) and gasoline inventories, which surged to 2553K vs expectations of 900K. I have seen suggestions that Crude and other commodities prices will fall or be manipulated lower in order to facilitate QE3 from lower levels to stimulate demand again ? so many theories...so much pushing on a string.
Ryanair pushed its nose into the sunlight this afternoon and got to a new high post the results and the cautious wanring that caused the stock to drop by -5% on the news of their guidance announcement. Falling oil prices and a bullish story helping here. Aer Lingus being dragged up on its coat tails.
Aidan Heavy of Tullow gave interview in Dublin today saying that he does not think Tullow will be taken over and suggesting that on the contrary to does not want to be taken over. He went on to say that he thought that the Tweneboa oil field could turn put to be a big as Jubilee. Good and bullish news but had little impact on the price which fell -5% in Dublin but the volume trades in sterling and this fell only -1.2%
CRH continues to head south now , I think that this one is worth covering back for all who so0ld it higher at about eur14 though if the double dip actually bites the lows of the Eur 12.00 level are still there again to be tested. The support at eur14 though may prove difficult to penetrate.
Have a good evening
Liam
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