Written by Gary
U.S. weekly jobless claims unexpectedly rise to 373,000 (SPY -1.3%). Futures, yields plunge amid global slowdown panic, China tech rout.
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. | |
Oil Prices Still Have Room To RunAt mid-year 2021 we find that we are in an unsettled state with respect to crude supplies. Of the three largest contributors to global supply, the U.S.A., Russia, and OPEC+ (Russia is the + in OPEC+), all capable of producing more than 10 mm BOPD, we find that it is OPEC+ in a bit of disarray. With the world now in deficit status with regard to oil production and demand by 2-3 mm BOEPD, there is little room for error. In an article carried in Reuters, the emerging dynamics of the current OPEC+ meeting were in focus. The major topic | |
Bezos, Branson and Musk Scrambling For Supply Of This Rare GasWeve had supply scares for this gas before; but this time around, it coincides with the depletion of the US federal reserve and soaring demand from some of the biggest industries on earth. The tech industry is likely to find itself scrambling to secure supply Its key to hard drives. It helps feed our insatiable hunger for big data. Without it, medicine would be deprived of MRIs and critical R&D. Even billionaire Jeff Bezos Blue Origin space mission depends on it as the richest man | |
The Real Reason OPEC Talks Broke DownMajor cracks appear to be forming in the OPEC+ alliance. After several years of unprecedented cooperation between OPEC members and non-OPEC producers, the growing regional economic and power conflict between Saudi Arabia and Abu Dhabi is threatening the arrangement. While much of the analysis of the recent OPEC+ disagreement has focused on why the UAE refused to commit to the new export plan, there are other factors that have been largely overlooked. A closer look at the ongoing investments by the UAE in its upstream and downstream industry is | |
The Oil Stocks Wall Street RecommendsAs oil prices have rallied more than 40 percent this year, analysts and institutional investors have grown increasingly bullish on oil stocks, which, many believe, are still undervalued and primed for further upside. Earlier this week, U.S. oil prices hit their highest level in more than six years, before retreating amid an OPEC+ meeting deadlock that led to a bit of volatility. But the years rally so far still could enable U.S. oil firms to improve returns and pay down debts, considering that they are still cautious in spending | |
Ship Explosion Rocks Dubai PortLocal media have reported a large explosion at the Port of Jebel outside of Dubai, in the United Arab Emirates, with the Dubai government confirming a fire on a container ship. The explosion was loud enough to hear across the city, as described by media. In a statement carried by BNO Media, the Dubai government said: A fire has been reported to have broken out in a container within a ship anchored in Jebel Ali Port. A Dubai Civil Defense team is working to put out the blaze. A fire caused by an explosion within a container | |
The Plastics Sector Is Suffering As Oil Prices RiseFour years ago, the UN declared plastic pollution a global crisis, decades after the discovery of the Great Pacific Garbage Patch–a collection of marine debris 2x the size of Texas. The Year 2020 was supposed to be a watershed moment for the industry after dozens of state and local policymakers planned to make the ultimate shift away from plastics. They clearly underestimated the sheer tenacity of the plucky industry, and a global pandemic. The plastics industry quickly seized the unexpected opportunity provided by the Covid-19 pandemic | |
MLB, Candy Digital will offer World Series ring with Los Angeles Dodgers NFTThe Fanatics-owned company will make it second NFT avaiable as part of an licensing agreement with MLB. | |
5 things to know before the stock market opens ThursdayDow futures on Thursday fell more than 450 points, or 1.3%, in a broad premarket decline. | |
New Covid outbreaks a top risk to economic recovery, OECD chief saysNew outbreaks of Covid-19 remain one of the top risks to a global economic recovery, the OECD’s secretary-general has warned. | |
Headache? Runny nose? These are among the new top 5 Covid symptoms, study saysSymptoms associated with Covid-19 are changing with the advent of new variants. | |
Global Covid death toll exceeds 4 million, Hopkins data showThe World Health Organization declared the coronavirus outbreak a global pandemic more than a year ago. | |
England 2-1 Denmark: Harry Kane strikes extra-time winner as Three Lions set up Euro 2020 final with ItalyGareth Southgate’s team eclipsed the manager’s icons of 25 years ago with a hard-fought 2-1 win over brave Denmark. | |
Covid-19 has destroyed 22 million jobs in advanced countries, says OECDAs many as 22 million jobs have been lost in advanced economies due to the Covid-19 pandemic, the Organization for Economic Cooperation and Development (OECD) said Wednesday. | |
Six vaccinated countries have high Covid infection rates. Five of them rely on Chinese vaccinesVaccines made in China face rising doubts about their efficacy, compounded by a lack of data on their protection against the more transmissible delta variant. | |
Unvaccinated clusters allow Covid to mutate and put everyone at risk, doctor saysDr. Kavita Patel warned that the longer people wait to get vaccinated, “the more it poses a risk down the line for even those of us who are vaccinated.” | |
Trade Desk seeks to limit number of streaming service ads with new product launch“The vision that we have for the internet is to preserve the quid pro quo of the internet where you see relevant ads in exchange for free content,” CEO Jeff Green said. | |
Jim Cramer sees market opportunities, lays out 7 themes for the second half of 2021“I see a lot to like in the second half. However, I recognize that there are some real negatives here,” the “Mad Money” host said. | |
Charts suggest stocks headed higher despite present risks, Jim Cramer saysCNBC’s Jim Cramer said he sees signs that the stock market could be ready to retreat from its highs, but a trusted volatility expert is suggesting otherwise. | |
NBA reporter Rachel Nichols back on ESPN air after one-day rest following Maria Taylor race furorESPN NBA reporter Rachel Nichols is under fire during the Finals between the Suns and Bucks due to her comment about colleague Maria Taylor. | |
There Are Still Over 14 Million Americans On Some Form Of Government DoleThere Are Still Over 14 Million Americans On Some Form Of Government Dole Initial jobless claims hovered at post-COVID-lockdown lows but were disappointing at 373k – well above the 200k-ish norms of pre-COVID Source: Bloomberg Notably, California and Virginia ‘estimated’ their jobless claims last week and Pennsylvania continues to swing wildly from week to week… But, while the picture is improving overall, we should still remember that there are over 14 million Americans still on some of govern … | |
ECB Launches Average Inflation Targeting, Will Tackle Climate ChangeECB Launches Average Inflation Targeting, Will Tackle Climate Change As previewed earlier, after a lengthy 18 month consultation period in which it did its best to imitate the Fed, on Thursday the ECB finally unveiled its “new monetary policy strategy” which – like the Fed – consists of a symmetric 2% inflation aim, effectively raising its inflation goal and saying that – like the Fed and its average inflation targeting regime – it’s willing to tolerate a limited overshoot of the target, the outcome of a strategy revamp aimed at bolstering the economy after years of subpar prices and growth, yet as noted previously the ECB’s new inflation goal, which many had expected, is just that – a goal; how it actually gets there is the real question. Even as the ECB overhauls its inflation target, the set of ECB interest rates remains the primary monetary policy instrument according to the central bank which added that other instruments such as (endless) asset purchases, forward guidance, and longer-term refinancing operations to remain an integral part of toolkit. As Bloomberg notes, the strategy review is the first by the Frankfurt-based institution since 2003, and the most comprehensive and ambitious attempt to rethink its role in serving the euro zone’s 342 million citizens since the creation of the single currency. Specifically, the ECB agreed to seek consumer-price growth of 2% over the medium-term with a œsymmetric aim that could œimply a transitory period in which inflation is moderat … | |
US Seeks To “Assure” UK Extradition Court Julian Assange Won’t Face Cruel ConfinementUS Seeks To “Assure” UK Extradition Court Julian Assange Won’t Face Cruel Confinement That the United States government will speedily see its extradition demands met in the case of WikiLeaks founder Julian Assange has been in increasing doubt over much of the past year as the US side must prove based on UK law that he won’t face cruel or torturous confinement. If extradited Assange is facing life in prison on espionage charges, likely at the Colorado supermax where inmates spend 23 of 24 hours a day in solitary confinement inside a small cell; however, this week the US government is trying to give “assurances” to a UK court that he “won’t be held under the strictest maximum-security conditions if extradited to the US,” according to new Wall Street Journal reporting on Wednesday. Via Reuters On this very basis of Assange likely facing cr … | |
Futures, Yields Plunge Amid Global Slowdown Panic, China Tech RoutFutures, Yields Plunge Amid Global Slowdown Panic, China Tech Rout After S&P futures printed at new all time highs on 8 of the past 9 days, one can almost feel sorry for the euphoric bulls (and meme stock traders) who woke up this morning to headlines such as this: *S&P 500 INDEX FUTURES RETREAT 1.5% *NASDAQ FUTURES DROP 1.5% *STOXX EUROPE 600 INDEX DROPS 1.5% TO SESSION LOW And sure enough, just one day after it appears that nothing could stop markets from exploding to recorder highs day by day by day, on Thursday morning both the reflation and growth trades were a dumpster fire, with Dow e-minis plunging 475 points, or 1.37%. S&P 500 e-minis were down 58 points, or 1.34% and Nasdaq 100 e-minis were down 190 points, or 1.3%, the VIX jumped above 20 after trading at 14 just a few days earlier and 10Y yields dropped as low as 1.25%. Bitcoin tumbled back down to $32,000. At the same time, the collapse in yields accelerate, with 10Y yields tumbling as low as 1.25% while 30Y dropped below 1.90% for the fir … | |
Easyjet warns travel rules may just benefit richCostly testing could put travel out of reach for some, despite more relaxed rules, the airline says. | |
Chancellor Rishi Sunak hints at ruling out 8% pension riseRishi Sunak says a decision on the future of the triple lock promise will be “based on fairness”. | |
Will England’s success boost the UK economy?The chancellor and others think the tournament could boost consumer confidence as the economy reopens. | |
Jai Balaji Industries: Back from brink of bankruptcy, but can it be a revival bet?After becoming a 1MTPA company from being a 1 lakh tonne firm in 42 months, Jai Balaji became more ambitious. It embarked upon a plan to set up a 5 million tonnes steel plant along with a 1,215 MW power plant at Purulia, West Bengal. | |
Market Movers: China concerns spark selloff in metals, Tata MotorsShares of metal companies were among the biggest losers on the day. Concerns surrounding slowing economic growth in China, the largest consumer of metals, arose in the light of media reports that the Chinese Cabinet was in favour of cutting interest rates. | |
CDSL becomes first depository to open 4 crore demat accountsCDSL is currently the largest depository in the country in terms of active demat accounts. | |
Bond Report: 10 and 30-year Treasury yields fall toward 5-month lows as stock market skidsLonger-dated Treasury yields on Thursday drop to around five-month lows as stock markets tumbled, raising fears that the rally in government debt is signaling a growing worry about the economic rebound from COVID, which most recently saw the S&P 500 and Nasdaq Composite end at all-time highs. | |
The New York Post: Liquidating his property portfolio, Elon Musk says he now lives in a tiny $50,000 prefab house in Texas that he rents from SpaceXAfter selling much of his real-estate portfolio in the past year and listing his final property earlier this month to focus on his mission to Mars, the Tesla TSLA and SpaceX CEO is taking the retirement-saver dictum œLive below your means to another level. | |
Futures Movers: Oil extends slide as uncertainty lingers over OPEC stalemateOil futures remain under pressure Thursday as an OPEC+ stalemate stokes uncertainty over the outlook for crude supply. |
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