Dollar Falls Sharply as Slump Continues, But Dark Days to End Soon, BofA Says By Investing.com



© Reuters.

By Yasin Ebrahim

Investing.com – The dollar fell sharply on Monday as better-than-expected U.S. services data strengthened investor expectations for speedier economic recovery, but some on Wall Street expect the greenback to regain its footing.

The , which measures the greenback against a trade-weighted basket of six major currencies, fell by 0.62% to 96.69.

The Institute for Supply Management’s () non-manufacturing purchasing managers’ index (PMI) jumped to 57.1 in June from 45.4 in May. 

The quicker-than-expected pace of recovery in the U.S. service sector lifted hopes the economy will continue on the path of recovery despite the recent rise in Covid-19 cases nationwide.

“The service sector has definitely experienced a v-shaped rebound from the initial Covid-19 shock … We’re back at readings in February before the shutdowns,” Scotiabank said. “July’s reading could easily be stronger as reopening momentum is imperfect, occurring in fits and starts across some states, but nevertheless ongoing both at home and abroad for exporters.”

Still, the sharp rise in U.S. coronavirus cases means the current economic recovery may prove short-lived, triggering renewed demand for safe-haven assets such as the dollar, Bank of America (NYSE:) said.

“The current recovery is as sharp as the collapse of output when the lockdown started, but this should not be a surprise for markets,” BofA analysts said, pointing to recently improved economic data.

The bank expects the global economy to be “dealing with the consequences from the Covid-19 crisis for years to come,” even if a coronavirus vaccine is developed.

The dollar’s decline was also exacerbated by a strong climb in the euro. 

rose 0.58% to $1.1313 as Germany, the economic powerhouse of the EU, reported that factory orders rebounded 10.4% in May, as the country reopened from lockdown.

, meanwhile, was flat at $1.2494 as traders continue to fret over the outcome of EU and UK trade post-Brexit trade talks which will continue in London this week.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Oil falls below $43/bbl on virus fears, still heads for weekly gain By Reuters



© Reuters. The sun sets behind a crude oil pump jack on a drill pad in the Permian Basin in Loving County

By Alex Lawler

LONDON (Reuters) – Oil fell below $43 a barrel on Friday as a resurgence of coronavirus cases raised concern that fuel demand growth could stall, although crude was still headed for a weekly gain on lower supply and wider signs of economic recovery.

The United States reported more than 55,000 new coronavirus cases on Thursday, a new daily global record for the pandemic. The rise in cases suggested U.S. jobs growth, which jumped in June, could suffer a setback.

“If this trend continues, oil demand in the region is at risk,” said Louise Dickson of Rystad Energy.

Brent crude () was down 38 cents, or 0.9%, at $42.76 a barrel by 12:03 p.m. EDT (1603 GMT), and U.S. West Texas Intermediate (WTI) crude () fell 44 cents, or 1.1%, to $40.21.

U.S. trade was thinned by the Independence Day holiday.

“The fragile U.S. economic rebound is at risk of being undone by the latest surge in new infections,” said Stephen Brennock of oil broker PVM.

Both benchmarks rose more than 2% on Thursday, buoyed by strong U.S. June jobs figures and a drop in U.S. crude inventories. [EIA/S] Brent is still on track for a weekly gain of 4%.

Signs of economic recovery, and a drop in supply after a record supply cut by the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, have helped Brent more than double from a 21-year low below $16 reached in April.

Boosting recovery hopes, a private survey showed on Friday that China’s services sector expanded at the fastest pace in over a decade in June.

OPEC oil production fell to its lowest in decades in June [OPEC/O] and Russian production has dropped to near its OPEC+ target.

The bankruptcy filing of U.S. shale pioneer Chesapeake Energy (NYSE:) also supported prices by raising expectations production will decline, JBC Energy said in a report.

Gasoline demand will be closely watched as the United States heads into the July 4 holiday weekend.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Pfizer, Tesla Rise Premarket; McDonald’s Falls By Investing.com




By Peter Nurse 

Investing.com — Stocks in focus in premarket trade on Thursday, July 2nd. Please refresh for updates.

  • Pfizer (NYSE:) stock rose 2.6%, extending gains on Wednesday’s news that the pharma giant’s Covid-19 vaccine candidate (in collaboration with Germany’s BioNTech) has yielded positive results in a clinical trial. 

  • McDonald’s (NYSE:) stock fell 0.4% after the fast-food giant paused the reopening of its dine-in service in the U.S. as coronavirus cases continue to spread across states, according to an internal memo seen by the Wall Street Journal.

  • Tesla (NASDAQ:) stock rose 8.3%, continuing the electric maker’s impressive gains. Tesla became the world’s most valuable car manufacturer Wednesday, overtaking the market capitalization of Toyota, with its stock hitting a record high. 

  • American Airlines (NASDAQ:) stock rose 2.7% after the airline said it’s considering staff cuts; American reckons it’s overstaffed by about 8,000 flight attendants and may reduce its workforce through early retirements and voluntary leaves.

  • JetBlue Airways (NASDAQ:) stock rose 3.2% after the airline came to an agreement with the labor union that represents its pilots that avoids involuntary furloughs through April of next year.

  • Inovio Pharmaceuticals  (NASDAQ:) stock rose 3.9%, rebounding after dropping over 26% Wednesday after data from its coronavirus vaccine program fell short of expectations.
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Travelers Stock Falls 3% By Investing.com



© Reuters. Travelers Stock Falls 3%

Investing.com – Travelers (NYSE:) Stock fell by 3.01% to trade at $111.25 by 15:14 (19:14 GMT) on Friday on the NYSE exchange.

The volume of Travelers shares traded since the start of the session was 817.77K. Travelers has traded in a range of $111.03 to $114.42 on the day.

The stock has traded at $118.2800 at its highest and $111.0300 at its lowest during the past seven days.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



BlackRock Stock Falls 3% By Investing.com



© Reuters. BlackRock Stock Falls 3%

Investing.com – BlackRock (NYSE:) Stock fell by 3.10% to trade at $537.35 by 14:44 (18:44 GMT) on Wednesday on the NYSE exchange.

The volume of BlackRock shares traded since the start of the session was 402.01K. BlackRock has traded in a range of $536.39 to $551.55 on the day.

The stock has traded at $566.9800 at its highest and $536.3900 at its lowest during the past seven days.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil Falls Over Bigger-Than-Expected U.S. Supply By Investing.com



© Reuters.

By Gina Lee

Investing.com – Oil was down on Wednesday morning in Asia, with investors digesting a second consecutive week of increases in the crude oil supply.

The American Petroleum Institute (API) a large build of 1.749 million barrels for the week ended June 19 on Tuesday. The prediction was much bigger than the estimated 300,000 barrel-build in forecasts prepared by Investing.com.

fell 0.49% to $42.42 by 10:05 PM ET (3:05 AM GMT), giving up its earlier gains. slid 0.64% to $40.11.

Investor sentiment continues to be cautious over increasing fears of an oversupply, with OPEC+ production cuts set to end in July but with ever increasing cases of the COVID-19 virus.

There are over 9.2 million cases globally as of June 24, according to Johns Hopkins University data.

Meanwhile, all investor eyes are now on whether the U.S. Energy Information Administration’s (EIA) will also predict a build in the supply later in the day.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Oil falls on growing fears of a second wave of coronavirus By Reuters


2/2

© Reuters. A TORC Oil & Gas pump jack near Granum

2/2

By Bozorgmehr Sharafedin

LONDON (Reuters) – Oil prices fell on Monday as new coronavirus infections hit China, Japan and the United States, adding to concerns that a resurgence of the virus could weigh on the recovery of fuel demand.

was down 93 cents, or 2.4%, at $37.80 a barrel by 0808 GMT. U.S. West Texas Intermediate crude was down $1.33, or 3.7%, at $34.93 a barrel.

“The recovery in oil demand is already set to be a lengthy process, and a fresh wave of cases will certainly raise worries that a recovery in demand may take even longer than initially thought,” ING’s head of commodities strategy Warren Patterson said.

After nearly two months with no new infections, Beijing officials have reported 79 cases of the coronavirus over the past four days.

U.S. coronavirus cases also started increasing. More than 25,000 new U.S. cases were reported on Saturday alone as more states reported new infections and hospitalisations.

Economic data from China were also not promising. China’s industrial output expanded 4.4% in May from a year earlier but the gain was less than expected, suggesting the world’s second-biggest economy is still struggling to get back on track.

Still, Chinese refineries’ throughput in May rose by 8.2% from the same period a year earlier to about 13.6 million barrels per day (bpd).

“Overall, with oil supply flowing in a more or less expected path, demand will now be the key price mover,” said Rystad Energy’s head of oil markets Bjornar Tonhaugen.

An OPEC-led monitoring panel will meet on Thursday to discuss ongoing record production cuts and see whether countries have delivered their share of the reductions.

Iraq, one of the laggards in complying with the curbs, agreed with its major oil companies to cut crude production further in June, Iraqi officials working at the country’s giant southern oilfields told Reuters on Sunday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



USD/CAD Falls to Three-Month Lows, but Risks Ahead Will Limit Further Losses By Investing.com



© Reuters.

By Yasin Ebrahim

Investing.com – The dollar fell to a three-month low against the Canadian dollar Monday, adding to its losses over the past three weeks, but analysts warn of easing risk sentiment in the near term that will keep a lid on further downside.

fell 0.40% to C$1.3371, hitting its lowest since Mar. 4, shrugging of a fall in oil prices amid data showing Canadian housing starts bounced back last month.

Canadian bounced back to 193,500 in May after falling to 166,500 in April.

The surprising resilience in housing added to a string of recent near-term data flow that has “clearly been less discouraging than was expected even a few weeks ago,” RBC said in a note.

Still, the loonie’s current three-week winning streak against the greenback is likely to come under pressure over the near-term.

Easing risk-on market sentiment amid ongoing U.S.-China tensions and the threat of a second wave of infections will likely keep the loonie’s advance in check, Commerzbank (DE:) said in a note.

USD/CAD is expected to stabilize at current levels “for the time being,” the bank added.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Russian oil output falls to 9.39 million bpd in May, close to OPEC+ goal: Ifax By Reuters



© Reuters. FILE PHOTO: A well head and drilling rig in the Yarakta oilfield in Russia

MOSCOW (Reuters) – Russian oil and gas condensate production fell to 39.7 million tonnes (9.39 million barrels per day) in May, near its target under a deal within the OPEC+ group, Interfax news agency reported on Tuesday, citing energy ministry data.

The figure was in line with data from sources, reported by Reuters on Monday, and down from 11.35 million barrels per day (bpd) in April.

Under the agreement between Russia and the Organization of the Petroleum Exporting Countries, a group known as OPEC+, Moscow has pledged to reduce its output by around 2.5 million bpd to 8.5 million bpd to help support oil prices. The deal does not include output of gas condensate, a light oil.

Russia usually produces 700,000-800,000 bpd of gas condensate. That means that excluding gas condensate, Russia produced 8.59-8.69 mln bpd of in May.

The ministry does not disclose gas condensate output on a monthly basis separately.

Interfax also said that Russian oil exports outside former Soviet Union in May reached 17.36 million tonnes, or 4.1 million bpd, down 14.2% year-on-year.

OPEC+ agreed to cut its combined output by around 10 million bpd, or 10% of global oil production, in May and June, with a subsequent easing of the reductions, to tackle economic fallout from the coronavirus pandemic.

OPEC+ may hold an online conference as early as Thursday to discuss its policy, compared with the original schedule of next week. The group is due to discuss extension of the output cuts in its current pace.

Interfax also said that Russia’s production fell by 9.2%, year-on-year, in January – May, to 293.26 billion cubic metres.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



U.S. manufacturing activity off 11-year low; construction spending falls By Reuters



© Reuters. The frame of a 2015 Ford Mustang vehicle moves down the production line at the Ford Motor Flat Rock Assembly Plant in Flat Rock, Michigan,

By Lucia Mutikani

WASHINGTON (Reuters) – U.S. manufacturing activity eased off an 11-year low in May, the strongest sign yet that the worst of the economic downturn was behind as businesses reopen, though the recovery from the COVID-19 crisis could take years because of high unemployment.

The Institute for Supply Management (ISM) said on Monday its index of national factory activity rose to a reading of 43.1 last month from 41.5 in April, which was the lowest level since April 2009. A reading below 50 indicates contraction in manufacturing, which accounts for 11% of the U.S. economy.

“Today’s report on the manufacturing sector represents good news that hints the economy is turning the corner as the states reopened in May,” said Chris Rupkey, chief economist at MUFG in New York. “It will not be a quick recovery for sure, but at least the worst is over.”

The first increase in the ISM index since January mirrored improvements in regional manufacturing surveys in May and suggested April was the nadir for economic activity. A survey on Monday from data firm IHS Markit also showed stabilization in manufacturing conditions in May.

“The coronavirus pandemic impacted all manufacturing sectors for the third straight month,” said Timothy Fiore, chair of the ISM Manufacturing Business Survey Committee. “May appears to be a transition month, as many panelists and their suppliers returned to work late in the month. However, demand remains uncertain.”

About 21.4 million jobs were lost in March and April and at least another 8 million are expected to have been shed in May.

The economy contracted at a 5% annualized rate in the first quarter, the worst performance since the 2007-09 recession. Gross domestic product is expected to decline at a rate as sharp as 40% in the second quarter, which would be the biggest contraction in output since the Great Depression of the 1930s.

Stocks on Wall Street were little changed as investors turned cautious amid country-wide protests over race relations and a flare-up in tensions between Washington and Beijing. The dollar fell against a basket of currencies. U.S. Treasury prices slipped.

BROAD IMPROVEMENT

The ISM’s forward-looking new orders sub-index increased to a reading of 31.8 in May from 27.1 in April, which was the lowest since December 2008. The survey’s measure of order backlogs at factories rose to 38.2 last month after plummeting to a reading of 37.8 in April.

There was also an improvement in the ISM’s measure of factory employment, which advanced to a reading of 32.1 in May after plunging to 27.5 in the prior month, which was the lowest since February 1949.

Eleven industries, including primary metals, transportation equipment and machinery reported activity contracted in May. The six industries reporting growth last month included food, beverage and tobacco, paper and furniture products.

A separate report from the Commerce Department on Monday showed construction spending dropped 2.9% in April, the largest decrease since October 2018, after being unchanged in March.

Economists had forecast construction spending declining 6.5% in April. The construction sector has fared better than other segments of the economy as some of the large projects were likely put in place months before the COVID-19 pandemic.

In addition, many states regarded the industry as essential business, when restaurants and other social gathering venues were shuttered in mid-March to slow the spread of COVID-19.

The industry is also being supported by near record low interest rates. In April, spending on private sector construction projects dropped 3.0%. Outlays on homebuilding tumbled 4.5%. Spending on nonresidential structures, which include manufacturing plant and mining exploration, shafts and wells, decreased 1.3%. Investment in public construction projects fell 2.5% in April.