Market Tips: Pullback Coming, Oil at $60

Thursday, 2 Jul 2009 | 5:29 AM ET

Global stocks were lower on Thursday ahead of the U.S. nonfarm payrolls report for June and the European Central Bank's rate and policy decisions. Experts tell CNBC to expect a small pullback in the short term.

Pullback Will Be Small

Any correction in the markets will be fairly light, says Geoff Lewis, head of investment services at JPMorgan Asset Management, as many fund managers missed the recent rally.

Watch for a Market Pullback

Leading economic data continues to improve, but the stock market looks like it really wants to pull back says Karl Eggerss, chief trader at LafferFrishberg.com. He tells CNBC to watch for a selloff of as much as half of the gains made since March.

Crude Prices May Test the Low $60s

Crude prices are likely to soften and test the low $60s again this quarter, John DiPlacido, president & oil trader at Energex, said.

Oil to Retreat to $50-$60 in H2

Oil faces downward pressure going forward, says David Johnson, head of oil and gas for Asia at Macquarie Securities. He expects oil to fall to $50-$60 when the peak driving season ends and U.S. stock inventories rise.

Bonds Will Continue to Outperform

The strong performance bonds is expected to continue, says Robert Mead, head of Australian portfolio management at PIMCO.


  • The U.K. unemployment rate fell to 6.9 percent, as pay growth and inflation grew by the same level.

  • A customer carries Tesco-branded shopping bags as she leaves one of the company's stores.

    British supermarket giant Tesco reported a dip in group sales compared to last year, highlighting the challenges it faces in the U.K. and Europe.

  • Burberry's flagship store on Regent Street in London.

    British luxury retailer Burberry said strong sales in China and Korea helped it to a 19 percent rise in second-half revenue, beating analyst expectations, but said it expected currency headwinds to hit profits in the next two years.

  • Swiss bank Credit Suisse reported a 34 percent drop in first-quarter net profit from the same period last year, worse than analysts had expected.

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