July 10 - Michael Hewson of CMC Markets believes oil prices have further to fall as the global economy slows, reducing demand for crude.
Eight could slow up by an -- strike in no way I'm economic -- up from China. This is today's market pulse. So Norway's government steps in to hold on oil sector strike which hot race fears of a sharp reduction in units crude supplies. And growth in Chinese imports slowed sharply in June. Let's -- -- from Michael Hewson CMC markets in London. Michael -- -- -- 1% that was done 2% -- China and only the drivers here. Yeah I think -- but time I'll sipping -- some technical aspects that we need to look at with respect to the prime price. And and particularly a couple top -- count that we sort of beginning today. We broke below that 100 -- all along and them. For me that was quite significant. And the Pacific time very very shelf -- down to around about -- T nine. Dollars a barrel. In the magnitude which was at 200 week moving average now and -- we get back above that 102 dollar up. Mark and I think we could potentially hit as -- -- 78 dollars a barrel given the bleak global growth outlook than the only thing they talked about -- tonight. Some -- all of this seems that quite a stretch from -- -- It doesn't -- you know I think we we need to look at the context of you know the the growth outlook going full and it's not particularly good. Yes we pull ourselves a little bit of time with respect say what's going on in Europe and this Spanish bank by -- but until such times. As EU policy like this deal with the underlying. That consultancy shape. Growth I think in Europe he's going to lack for quite some time to come so and hope. Not so I was just -- oil not being particularly about statement yet other out of Scott says something bad bets on them for example banks up you can -- on banks up 2%. What what buying them. But again you know we've seen it's not easy -- in Spanish and Italian bond yields than done obviously you kite banks have. A significant exposure to the periphery Barclays in particular I think. A significant exposure to the -- period peninsula. -- some volumes of Fannie Fannie anemic. -- the markets are really sold fifteen half. On. You know on on a -- a whole affair on the line. So -- some up on thin volumes and stocks up by itself all over and is moving shoving down. What I say whether hardly any group today is the you know why is that. Yeah I mean again I think it would be you or I -- and looked at the foreign exchange market I think we could well be susceptible. So bit of a rowdy -- I tell my excellent 23 nights he once -- but I ruled that downtrend youth and in fact. I still think longer time we're gonna see in moves towards one twin thing but just think Kevin minus -- -- to -- And it's going to work out some of that I was so pressure. Michael thank you very much. The -- from us and that was Michael -- that from CC Marcus. To join us at this time each weekday for market pulse a snapshot of -- moving on financial markets and why. I'm Jamie give out this is Reuters.