Morning Energy Comments 7/23
Energy futures are coming in sharply lower ahead of the opening bell with renewed economic concerns out of the EU and China prompting traders to shed length. While the geopolitical headlines remain a market concern, Spanish bond yields continue to rise above 7% which is considered an unsustainable level considering their current economic situation. Concern that China’s growth and oil demand could continue to decline is back in the headlines after an Official from the Bank of China predicted that growth figures released tomorrow would be below last quarters disappointing figure of 7.6%. It will be interesting to see if traders will step in and buy the dip today or finally the bearish global economy will take control of the market and relieve some of the pressure on countries trying to regain footing amid higher food and energy prices.