* Investors remain nervous as tepid data clouds outlook
* Europe likely to be factor in China April PMI
* Coming up: euro zone economic sentiment surveys at 0900
GMT
By Luke Pachymuthu
SINGAPORE, April 29 (Reuters) – Brent crude eased under $103
a barrel on Monday as investors fretted about the uncertain
outlook for growth in the world’s two largest oil consumers, the
United States and China.
Brent had slipped 35 cents to $102.81 a barrel by
0121 GMT, after last week racking up its biggest one-week gain
since November 2012.
The crude benchmark remains more than 6 percent below its
starting point in April, pressured by a slew of economic data in
recent weeks suggesting the global economy remains on a fragile
footing at best.
The U.S. Commerce Department reported on Friday that the
world’s largest economy grew at an annual rate of 2.5 percent in
the first-quarter, under market expectations of 3 percent.
“First-quarter GDP really disappointed, and as long as
unemployment stays high, the U.S. Federal Reserve is going to
have to keep its backstop on the economy with quantitative
easing,” said Ben Taylor, sales trader at Sydney-based CMC
Markets.
“Investors this quarter will be looking for a stronger PMI
number, improved consumer confidence and improved consumer
spending to feel confident about where the U.S. economy is
headed.”
The Fed is expected to keep its current pace of bond buying
at $85 billion a month when it meets this week, with the
decision announced at 1815 GMT on Wednesday.
U.S. crude was down 41 cents at $92.59 a barrel on
Monday, after sliding to $86 by mid-month from over $97 at the
beginning of April.
CHINA EYED
Traders will also be zeroing on China this week, with the
world’s second largest oil consumer’s manufacturing data for
April expected to edge up from March, a Reuters poll found.
A private sector survey of purchasing managers sponsored by
HSBC last week showed activity in China’s industrial sector
contracted in April as new exports shrank, spooking investors.
“There has been some concern that with an unstable Europe
being one of China’s biggest export market, this could have a
negative impact on the PMI number,” Taylor said.
“Europe is in a really bad place at the moment, you get the
sense that everyone has really given up on it and is focusing on
other places to drive global growth.”
The European Central Bank will likely cut interest rates
when it meets on Thursday, a Reuters poll showed, but the step
is seen doing little to pull the euro zone out of a recession.
(Reporting by Luke Pachymuthu; Editing by Joseph Radford)
