Weak data from the US has contributed to a decline for commodity prices today.
July crude futures were down 1.38% at $86.65. US data out today showed a lower-than-expected figure for employment numbers, at 133,000 for May from 113,000 in April (consensus: 150,000). Weekly jobless claims also increased, by 383,000 from 370,000 previously, which was also the expected value. US GDP growth was also revised lower, down to 1.9% from 2.2% for the first quarter. The Chicago PMI was the final blow, coming in at a much weaker reading of 52.7 for May from 56.2 in April (expected: 56.8).
Poorer economic figures from the US meant that the last hope of the bulls was extinguished this afternoon. It had been hoped that US data would at least show growth in this part of the global economy, which would have helped to offset the crisis in Europe. However, economic activity is slowing around the world, and this has intensified buying of safe-haven assets.