Investing.com - Crude oil futures rallied, after bouncing from an 8 month low, as Moody’s bank downgrades were not as severe as markets expected.
On the New York Mercantile Exchange, Crude oil futures for August delivery traded at USD78.92 a barrel in early U.S. trade climbing 1.03%.
Oil climbed as financial shares rallied as the dreaded Moody’s bank downgrades proved to be less severe than expected
However, dampening oil enthusiasm, Germany’s Ifo business climate fell more-than-expected last month, data showed on Friday.
In a report, the Ifo Institute for Economic Research said its index of German business climate fell to 105.3, from 106.9 in the preceding month .
Analysts had expected the index to fall to 105.9 last month.
On Thursday, Spain’s Treasury sold EUR602 million worth of five-year government bonds at an average yield of 6.072% earlier in the day, up sharply from 4.752% at a similar auction last month.
Demand was stronger, however, with bids exceeding supply 3.44 times versus a "bid-to-cover" ratio of 3.14 in May.
Spain also sold EUR918 million of three-year debt at an average yield of 5.547%, up from 4.876% at a similar auction last month. The bid-to-cover ratio stood at 3.18, compared to 3.01 at an auction in May.
The country also auctioned EUR700 million of two-year debt at an average yield of 4.706%, compared to 4.335% at a similar auction last month. The bid-to-cover ratio stood at 3.97, compared to 2.81 at an auction in May.
In total, Spain’s Treasury sold EUR2.22 billion of government debt, above the full targeted amount of EUR2 billion.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
The yield on Spanish 10-year bonds eased to 6.65% following the auction, down from 6.74% before the results. Yields hit a record high 7.28% on Monday.
U.S. home sales and manufacturing fell more than expected weighing on the Greenback on Thursday
In other news, German Chancellor Angela Merkel, French President Francois Hollande, Itailian Prime Minister Mario Monti and Spanish leader Mariano Rajoy will meet in rome later today to attempt to solve the crisis.
Meanwhile, investors are watching a pending storm in the Gulf of Mexico. The Gulf creates 29% of U.S. oil output therefore severe storms in the regions are watched closely.
US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.17% to trade at USD82.42.
Elsewhere on the ICE, Brent oil for August delivery rose 1.73% to trade at USD90.78 a barrel, with the spread between the Brent oil and Crude oil contracts standing at USD11.33 a barrel.
On the New York Mercantile Exchange, Crude oil futures for August delivery traded at USD78.92 a barrel in early U.S. trade climbing 1.03%.
Oil climbed as financial shares rallied as the dreaded Moody’s bank downgrades proved to be less severe than expected
However, dampening oil enthusiasm, Germany’s Ifo business climate fell more-than-expected last month, data showed on Friday.
In a report, the Ifo Institute for Economic Research said its index of German business climate fell to 105.3, from 106.9 in the preceding month .
Analysts had expected the index to fall to 105.9 last month.
On Thursday, Spain’s Treasury sold EUR602 million worth of five-year government bonds at an average yield of 6.072% earlier in the day, up sharply from 4.752% at a similar auction last month.
Demand was stronger, however, with bids exceeding supply 3.44 times versus a "bid-to-cover" ratio of 3.14 in May.
Spain also sold EUR918 million of three-year debt at an average yield of 5.547%, up from 4.876% at a similar auction last month. The bid-to-cover ratio stood at 3.18, compared to 3.01 at an auction in May.
The country also auctioned EUR700 million of two-year debt at an average yield of 4.706%, compared to 4.335% at a similar auction last month. The bid-to-cover ratio stood at 3.97, compared to 2.81 at an auction in May.
In total, Spain’s Treasury sold EUR2.22 billion of government debt, above the full targeted amount of EUR2 billion.
Bond auctions have become key drivers of risk sentiment in recent months, as traders attempt to gauge the ability of indebted euro zone nations to fund themselves.
The yield on Spanish 10-year bonds eased to 6.65% following the auction, down from 6.74% before the results. Yields hit a record high 7.28% on Monday.
U.S. home sales and manufacturing fell more than expected weighing on the Greenback on Thursday
In other news, German Chancellor Angela Merkel, French President Francois Hollande, Itailian Prime Minister Mario Monti and Spanish leader Mariano Rajoy will meet in rome later today to attempt to solve the crisis.
Meanwhile, investors are watching a pending storm in the Gulf of Mexico. The Gulf creates 29% of U.S. oil output therefore severe storms in the regions are watched closely.
US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, fell 0.17% to trade at USD82.42.
Elsewhere on the ICE, Brent oil for August delivery rose 1.73% to trade at USD90.78 a barrel, with the spread between the Brent oil and Crude oil contracts standing at USD11.33 a barrel.