GLOBAL MARKETS-Oil slides on supply fears; euro and stocks slip before French election


Reuters

(Updates prices, changes comment)
    * U.S. crude dips below $50 a barrel for first time since
April 4
    * Euro ticks lower with French election in focus;
    * S&P 500 dips as Trump "reflation trade" fades

    By Rodrigo CamposNEW YORK, April 21 (Reuters) - Oil prices fell on Friday as
oversupply concerns resurfaced, while the euro and stocks
slipped ahead of the first round of the French presidential
election on Sunday.
    Crude oil prices slid more than 2.0 percent on Friday, on
track for the biggest weekly drop in a month, on renewed
concerns that increasing U.S. production and high inventories
will thwart OPEC's attempts to reduce the global crude glut.
[nL3N1HT1NW]
    U.S. crude futures fell below $50 a barrel for the first
time in two weeks, with volumes higher than the daily average.
    U.S. crude <CLcv1> fell 2.21 percent to $49.59 per barrel
and Brent <LCOcv1> was last at $51.93. [nL3N1HT1NW]
    With two days to go before the French election, centrist
presidential candidate, Emmanuel Macron, maintained a narrow
lead in opinion polls, though a terrorism incident in Paris on
Thursday pushed national security to the top of the political
agenda. nL8N1HT0KY]
    "After Brexit everyone has to be concerned," said Joe
Saluzzi, co-manager of trading at Themis Trading in Chatham, New
Jersey, speaking of the surprise vote in last June that resulted
in the UK move to leave the European Union.
    "People are not going to trade if they are nervous nowadays
- there is a little nervousness, a lot of uncertainty, so let's
wait and see."
    The euro was down 0.2 percent against the dollar at $1.0693
midafternoon in New York on Friday ahead of the French election.
     French blue-chip stocks <CAC.FCHI> fell 0.4 percent, while
the pan-European <STOXX> index added 0.1 percent.
    "So far markets have been pretty sanguine in the face of the
(French) presidential election, which was flagged as one of the
potential banana skins for markets in this year," Hargreaves
Lansdown senior analyst, Laith Khalaf, said.
     However, the euro zone economy bounded into the second
quarter with strong growth, according to a survey showing
businesses increased activity at the fastest rate for six years
as new orders stayed robust.
    The IHS Markit's Flash Composite Purchasing Managers' Index,
seen as a good guide to economic growth, climbed to 56.7 from
March's 56.4, its highest since April 2011. [nL8N1HT1GI]

    MAJOR STOCK MARKETS STEADY
    U.S. stocks also edged lower on Friday as geopolitical
concerns such the French election offset positive earnings news.
    Of the 95 companies in the S&P 500 stock index that have
reported earnings through Friday morning, about 75 percent have
topped expectations, according to Thomson Reuters data, above
the 71 percent average for the past four quarters.
    Overall, profits of S&P 500 companies are estimated to have
risen 11.2 percent in the quarter, the best since 2011.
    The Dow Jones Industrial Average <.DJI> rose 12.15 points,
or 0.06 percent, to 20,590.86, the S&P 500 <.SPX> lost 3.06
points, or 0.13 percent, to 2,352.78 and the Nasdaq Composite
<.IXIC> dropped 4.00 points, or 0.07 percent, to 5,912.77.
[nL3N1HT4HJ]
    The pan-European FTSEurofirst 300 index <.FTEU3> rose 0.04
percent and MSCI's gauge of stocks across the globe
<.MIWD00000PUS> shed 0.08 percent.
    Emerging market stocks rose 0.31 percent. MSCI's broadest
index of Asia-Pacific shares outside Japan <.MIAPJ0000PUS>
closed 0.48 percent higher, while Japan's Nikkei <.N225> rose
1.03 percent.
    The U.S. dollar index <.DXY> rose 0.19 percent, with the
Japanese yen 0.10 percent firmer versus the greenback at 109.23
per dollar, while Sterling <GBP=> was last trading at $1.2792,
down 0.12 percent on the day.
    "Traders understandably look content to flatten their books
and ride out the weekend's events from the sidelines," Omer
Esiner, chief market analyst at Commonwealth Foreign Exchange in
Washington, said in a note.
    U.S. Treasury prices gained slightly with eyes on France and
no major U.S. economic releases due to set market direction.
10-year note yields have held in a tight range since falling to
five-month lows on Tuesday, as investors await a catalyst to
determine if bonds will continue their rally. [nL1N1HT0GC]
    Benchmark 10-year notes <US10YT=RR> last rose 3/32 in price
to yield 2.2302 percent, from 2.241 percent late on Thursday.
    Spot gold <XAU=> added 0.2 percent to $1,284.01 an ounce.
U.S. gold futures <GCcv1> gained 0.19 percent to $1,286.20 an
ounce. [nL3N1HT3DS]
    Copper <CMCU3> rose 0.26 percent to $5,637.50 a tonne.


    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Graphic: World FX rates in 2017    http://tmsnrt.rs/2egbfVh
French election graphic:    http://tmsnrt.rs/2jLwO20
Decision Europe Eikon page:    cpurl://apps.cp./cms/?navid=72745
Global assets in 2017          http://reut.rs/1WAiOSC
Global bonds dashboard     http://tmsnrt.rs/2fPTds0
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Additional reporting by Saqib Iqbal Ahmed, Julia Simon, Chuck
Mikolajczak and Karen Brettell)
 ((rodrigo.campos@reuters.com; @rodrigocampos; +1.646.223.6344;
Reuters Messaging:
rodrigo.campos.thomsonreuters.com@reuters.net))

Keywords: GLOBAL MARKETS/ (WRAPUP 7, GRAPHICS)



This article appears in: Stocks , World Markets , Politics
Referenced Symbols: CAC


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