Rouble stabilised but not stable, oil slips below $60 once more

After the European markets rallied on the back of Brent Crude creeping above $60 per barrel mark, the world woke up to things in as much disarray as usual, with the rouble stabilised but not stable, and oil falling once more below its supposed support level.

As Russia began to sell off foreign currency, the rouble managed to come down from its record breaking highs against the dollar; however, this stabilisation still leaves the rouble in a precarious position, as anything above the psychologically significant 60 roubles per dollar mark spells trouble for the Russian economy.

Whilst oil dipped its toe across the $60 per barrel line yesterday afternoon, things weren’t so cheery this morning, with the commodity opening at $59.83. With oil looking likely to spend the day fluctuating around the $60 mark at best, and receding further away from this level at worst, it appears that the state of Brent Crude and the rouble will continue to be the barometers of health for the markets. The commodity could be in store for another panic-fuelled drop this afternoon, as the US announces its crude oil inventories; this announcement last week was one of the causes for oil’s last plunge, so it will be eyeing this figure carefully.

The FTSE was a big benefactor of oil’s afternoon positivity, and managed to close the day at 6258, opening flat at 6257.5 this Tuesday morning. This bullish sentiment was tentatively damaged as the morning went on; with a mixed set of data, with average earnings index up, but the unemployment rate growing, the UK index didn’t receive the unequivocal good news it would have hoped for. Regardless, the FTSE looks set to be on the leash of oil for much of the day, so this data may have minimal impact.

Like the FTSE, the DAX closed at the perfect time to take advantage of Brent Crude’s afternoon soiree into growth, leading to it opening 20 points up today at 9441.5. However, as the Greeks go to the polls, and the Eurozone’s final CPI looms on the horizon, the DAX and co. better brace themselves for another day of volatile trading, as the Eurozone continues to be seen as the weak link in the worldwide markets.

Whilst the European markets benefitted from closing when oil was rallying, the US markets didn’t have that luxury, as the Dow closed 100 points down at 17101.5. With today being a busy day for America, with core CPI and FOMC economic projections, the US markets will be hoping that some positivity from these announcements can break through the oil-smeared, rouble-shaped cloud that is hanging over the global economy.