(Aug 11 Bloomberg) >International Energy Agency predicts oil market to rebalance >New Zealand dollar climbs on policy outlook after rate cut
European stocks rebounded as oil trimmed losses after the International Energy Agency said pent-up demand would absorb record crude output.
The Stoxx Europe 600 Index rose 0.4 percent, with minters and energy producers trimming losses, as crude pared a drop of as much as 1.5 percent after the IEA forecast. Asian equities fell. New Zealand dollar surged to a one-year high after the country's central bank cut interest rates and signaled a more gradual easing path than some investors had anticipated. Nickel snapped a four-day advance. Ukraine's 2019 Eurobond fell the most since June amid signs tension is increasing with Russia.
Crude entered a bear market last week and the outlook is clouded as Saudi Arabia and Iran refuse to give ground in their war for market share, with both boosting output just days after OPEC announced an informal meeting to discuss ways to stabilize falling prices. Exacerbating the problem is global demand, which remains weak even as policy makers from Frankfurt to Tokyo engage in unprecedented stimulus to boost their economies. A strengthening jobs market in the U.S. has yet to convince traders that the world's biggest economy is strong enough for the Federal Reserve to raise interest rates this year.
Click on the link below to see the full story from Bloomberg: (by James Regan and Alan Soughley)