Written by Gary
Rail Week Ending 12 June 2021 – Continued Moderate Slowing In Intuitive Sectors (SPY -0.7%). Oil prices extend selloff as the Fed changes its tune.
Here is the current market situation from CNN Money | |
European markets are mixed. The DAX is higher by 0.06%, while the CAC 40 is leading the FTSE 100 lower. They are down 0.43% and 0.07% respectively. |
What Is Moving the Markets
Here are the headlines moving the markets. | |
Its Too Late To Avoid A Major Oil Supply CrisisThere are a number of observable trends in oil supplies and by extension prices, presently. I am going to discuss one of them in this article. A lack of capital investment in finding new supplies of oil and gas. A favorite analogy of mine comes to mind, the ship is nearing the dock. In nautical parlance that means the time for course corrections is at an end. So we shall see if that is the case for oil. The massive “ship” that is world oil demand is on an unalterable collision with supplies that will have profound implications for consumers. This | |
The Renewable Boom Has Barely Impacted Oil & GasA decade ago, fossil fuels accounted for just over 80 percent of final energy consumption in the world. During the last ten years, renewable energy has boomed, and installations continue to soar to record highs. But oil, gas, and coal still represent over 80 percent of final energy consumption, despite the rising share of renewable energy in the worlds total energy consumption. Fossil fuel use around the world hasnt retreated despite the avalanche of net-zero pledges, significantly increased support to clean energy from governments, | |
EU Likely To Make Green Bond Standard VoluntaryThe European Union considers making the upcoming EU Green Bond Standard not compulsory, but only voluntary for issuers of such bonds, Bloomberg reported on Thursday, quoting a draft EU document it had seen. As part of the complementary packages in the European Green Deal, the EU wants to direct financial and capital flows to green investments. Under the Green Deal, the EU established an EU Green Bond Standard, among the key new initiatives for 2021. Green bonds play an increasingly important role in financing assets needed for the low-carbon | |
Russian Drillers Rejoice As Oil Continues To RallyRussias oil and gas industry has been the driving force behind its economy ever since the first oil fields were discovered in Tsarist Russia at the end of the 19th century at the shores of the Caspian. In the 21st century, the Russian economy remains highly dependent on the production of oil and gas. Therefore, the rosy outlook of the fossil fuel industry is good news for Moscow and its political ambitions. Last year was devastating for the global oil and gas sector as entire economies were paralyzed by government measures to stop the spread | |
Oil Prices Fall As The Fed Changes Its TuneOil prices sank on Thursday as the Feds hawkish comments sent the dollar higher. Crude oil is down more than 1% on Thursday afternoon, with WTI falling 1.32% at $71.20 per barrel, and Brent down 1.57% to $73.22. Both prices are still up on the week, but down nearly $2 from Wednesday highs. Jerome Powell on Wednesday afternoon said that rising inflation is most transitory, but suggested there is also a risk that inflation may prove to be more persistent than the Feds expected. The Federal Reserve said that it may lift rates as early as in | |
U.S. Shale Set For Record $30 Billion Free Cash Flow In 2021U.S. shale producers are expected to generate a combined $30 billion in free cash flow in 2021 amid disciplined capital spending and higher oil prices, estimates from Bloomberg Intelligence show. This year, shale producers continue to adhere to disciplined spending and is not reinvesting in new drilling more than the cash flows it earns. Thats a U-turn from past boom and bust cycles where the U.S. shale patch loaded up on debt to drill and produce as much oil as possible, contributing to sinking oil prices. After the 2015-2016 downturn, | |
As e-commerce sales proliferate, Amazon holds on to top online retail spotAs Amazon prepares for its annual Prime Day megasale, its reign as the biggest online retailer in the country is eye-popping. | |
Five years before a vaccine can ‘hold the line’ against Covid variants, England’s medical chief saysEngland’s top medical officer has warned that the coming winter will continue to be difficult for the country’s health system. | |
With car prices surging, yours is a prime target for thievesThe pandemic has helped fuel the biggest jump in auto thefts in more than a decade, experts say. | |
Travelers care deeply about sustainability – until it inconveniences themHopes for a “green” recovery by the tourism industry may have been overblown, as travelers choose convenience and price over sustainability. | |
Singapore slows the pace of reopening as Covid cases haven’t declined significantlySingapore has to be cautious in resuming higher-risk activities due to the delta variant first detected in India, said Health Minister Ong Ye Kung. | |
New Covid study hints at long-term loss of brain tissue, Dr. Scott Gottlieb warnsDr. Scott Gottlieb warned about the potential long-term effects of Covid and pointed to a new study that suggests brain tissue is being destroyed. | |
China’s entertainment industry is set to bounce back from Covid, says Chinese dancerJin Xing’s private dance company was able to resume national touring last year, the celebrity told Tania Bryer as part of the CNBC Evolve Global Summit. | |
Burger King’s chicken sandwich marks a shift in chain’s menu strategy away from promotionsBurger King’s chicken sandwich marks a shift in chain’s menu strategy away from promotions, Restaurant Brands International CEO Jose Cil said. | |
Moving around China has changed since Covid ” and the changes may be permanentWhile the pandemic made many commuters wary of public transportation, some turned to personal mobility devices for their travels. | |
Jim Cramer says the market is signaling that commodity inflation is ‘pretty much over’“The stock market, which is pretty correct on these kind of matters, is saying that commodity inflation has already peaked,” CNBC’s Jim Cramer said Thursday. | |
Clean Energy Fuels CEO says enthusiastic Reddit traders understand the company’s potential“I’ve read a lot of these posts, it seems like they get it,” Clean Energy Fuels CEO Andrew Littlefair told CNBC’s Jim Cramer. | |
Jim Cramer sees ‘terrific’ opportunity to buy the dip in Eastman Chemical sharesThe “Mad Money” host said Thursday that investors who share the Fed’s inflation outlook should buy Eastman Chemical. | |
Everything investors should know from EV start-up Canoo’s investor daySince going public, shares of Canoo have roughly been cut in half on executive departures, changes to its business plans and speculation about EVs. | |
Rabo: To Inflate AND Not To Inflate, That Is The QuestionRabo: To Inflate AND Not To Inflate, That Is The Question Authored by Michael Every via Rabobank, The markets sent a clear message yesterday: they don’t buy all the inflation story. How else does one interpret US-year Treasury yields reversing Wednesday’s 10bp jump to fall below 1.50% again, and 30-year yields plunging 17bp intra-day, closing down 12bp? Or the broad DXY dollar index jumping for a second day? Or commodities continuing to tumble, with US corn futures down nearly 7%, soybeans -6.7%, and wheat -3.4%? The mere threat of acting on rates to a minimal degree two and a half years from now –and an unexpected rise in US initial claims– prompted the bond market to recall that beneath our Covid- and supply-chain distortions still lies the New Normal. That’s a backdrop which as recently as 2019 had everyone worrying about secular stagnation; and it suggests Fed rate hikes into an economy which even their own economic projections show can run ultra-low unemployment rates AND low GDP growth AND low inflation would be a policy error, just like the last US tightening cycles where the yield curve flattened towards inversion. As importantly, the Fed won’t sell all the inflation story. Massive QE is staying in place given that despite long-term dot-plottery we are still œsubstantially short of clarity on when any tapering will happen. This is not the sign of a central bank that believes that absent asset-price inflation there is much of an economic game in town. Yet one can also see the Fed does not like one form of asset price inflation at all: in commodities. C … | |
Fed’s Bullard Spooks Markets With Taper Talk, Fears “Froth”Fed’s Bullard Spooks Markets With Taper Talk, Fears “Froth” US equity futures were already sliding this morning as option expirations loomed, but when St.Louis Fed Chair Jim Bullard appeared on CNBC and admitted that “it’s natural that [The Fed] has tilted a little bit more hawkish,” losses accelerated… Treasury yields are also spiking, especially 2Y.. And the dollar is extending gains… | |
Wuhan, Weapons, & Burned Spies: CCP Defector Identified, Gave ‘Terabytes’ Of Dirt To US Govt.Wuhan, Weapons, & Burned Spies: CCP Defector Identified, Gave ‘Terabytes’ Of Dirt To US Govt. Authored by Jennifer Van Laar via RedState, We now know the name of the Chinese defector who has been working with the Defense Intelligence Agency (DIA) for a few months and what his position within the Chinese military and government was, among other details. (AP Photo/Andrew Harnik, FILE) Matthew Brazil and Jeff Stein at Spy Talk reported on the œrumor, and gave the name and background of the rumored defector:
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3 Trillion Reasons To Brace For Today’s Record-Breaking Quad Witch Chaos3 Trillion Reasons To Brace For Today’s Record-Breaking Quad Witch Chaos At the start of the week, we warned of the potential for upheaval in markets that today’s near-record-breaking options-expiration (and quad witch) could cause as a massive amount of gamma and delta expire and are de-risked, in the process eliminating one of the natural downside stock buffers (see “4 Reasons Why The Market Doldrums End With Next Friday’s Op-Ex”). Anyone who ‘traded’ yesterday’s markets knows that is true and today could be even more wild as Goldman points out that today will be the second largest single stock options expiration in history, with $818bn of single stock options set to expire (only Jan-2021 was larger). | |
MSC Cruises cancels passenger trips after overbookingMSC Cruises had sold tickets for its trips assuming that Covid restrictions would be lifted on the 21 June. | |
Retail sales fall in May as shoppers dine outThe reopening of hospitality firms saw food sales drop, but people spent money on outdoor furniture. | |
UK food and drink exports to the EU almost halve in first quarterThe pandemic and Brexit hit exports in the first three months of the year, says the Food and Drink Federation. | |
Market Movers: Frothy smallcaps face music; HUL gets ready to rollWhile Thursday’s skittishness was largely down to the US Federal Reserve’s rabbit-out-of-the-hat trick, today’s deep sell-off in the broader market was largely an Indian phenomenon, and a deeply concerning one. | |
Why India’s stock markets are decoupled from the economic realityOne, markets by their khaasiyat ” their very nature ” are decoupled from the economy. They are either forward looking or despondent. The Bombay Stock Exchange Sensitive Index (BSE Sensex) bottomed out a shade below 26,000 a day before the lockdown commenced in March 2020. | |
Paytm to ask shareholder nod for $1.6 billion sale of new stockThe company wants to sell 120 billion rupees ($1.61 billion) in new shares plus a potential 1per cent for over-allotment, the company said in a notice for an extraordinary shareholder meeting scheduled for July 12 in Delhi. | |
Rail Week Ending 12 June 2021 – Continued Moderate Slowing In Intuitive SectorsWritten by Steven Hansen Week 23 of 2021 shows the same week total rail traffic (from the same week one year ago) improved according to the Association of American Railroads (AAR) traffic data. Total rail traffic is now surging as it is being compared to the recession period one year ago. | |
: Ownership of cryptos is booming and considered an alternative to mainstream investments, according to research by U.K. regulatorsAs many as 14% of those surveyed claimed to have borrowed money to invest in cryptocurrencies after reading reports of large gains. | |
Futures Movers: Oil prices extend selloff as dollar sees post-Fed surgeA soaring U.S. dollar gets the blame for a pullback in crude prices that has the U.S. and global benchmarks on track for weekly losses. | |
Project Syndicate: What we all need to learn about U.S. history: America isn’t a perfect union, neither is it the worst nation everAmerica’s flawed search for itself begins with confronting its complex past and continues by embracing a more equitable, balanced, and humble culture. |
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