Oil continues to remain an issue GDP fails to reassure (30-05-2008)

Wednesday’s session was particularly erratic on Wall Street, which, nonetheless, managed to finish in positive territory, as the durable goods orders data helped ease investor concerns regarding the economy. The recovery of oil prices, however, pared some of the gains and the commodity remains an issue that is sure to spill over into today’s session, as high energy prices are bound to weigh on businesses and their customers.  

In the Asia Pacific region, stocks advanced by the most they have in more than a month, on good news from the U.S. trading session, as technology companies and automakers gained, on optimism that sales shall remain strong despite rising costs and the slow down in global economy. On the agricultural commodity front, a report released on Thursday states that “world food prices are set to fall from current peaks in the coming years but will remain "substantially above" average levels from the past decade” 

The dollar found some strength after comments from the Dallas Fed President who said that if inflation accelerates the Federal Reserve will not hesitate to raise interest rates. The Euro on the other hand lost some steam on the same comments and on the rise in German unemployment. 

Stock markets in Europe were in positive territory by midday Thursday, advancing for a second straight session as miners rallied after the positive production outlook from Rio Tinto, while energy shares gained as oil hovered around $130 a barrel. 

In the U.S. stock futures pulled back after a government report showing the economy grew more than previously estimated in the first quarter failed to ease concern that the nation is slipping into a recession.

  Source ISFM