HomeContributorsFundamental AnalysisOil Prices Extend Gains Amid Focus On OPEC

Oil Prices Extend Gains Amid Focus On OPEC

General trend

  • Energy shares supported by the rise in oil prices.
  • Nikkei 225 has remained modestly higher [Gainers include Topix Air Transportation, Iron & Steel and Banks indices].
  • Shanghai Composite declined during the morning session [Consumer Staples index dropped over 3%, CSI Liquor index drops over 2%; IT index rose over 1%].
  • Hang Seng and HK TECH indices have continued to decline; Property names trade generally weaker amid Jun sales figures; BYD rises after issuing monthly sales figures.
  • S&P ASX 200 traded lower ahead of the RBA decision [Energy index rises over 2%; Resources index also outperforms; Consumer and Financial indices lagged].
  • Samsung is expected to issue Q2 guidance on Wed (financial press).
  • NZD supported by analysts RBNZ calls.

Headlines/Economic data

Australia/New Zealand

  • ASX 200 opened 0.0%.
  • (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH RATE TARGET UNCHANGED AT 0.10%; AS EXPECTED; adjusts weekly bond buying amounts, to review again in November; Maintains bond purchase program at A$100B, program to extend beyond September; Maintains 3-year yield target pegged to April 2024.
  • (AU) Australia total weekly payroll jobs change for Jun 6th-20th: +0.3% v -0.9% prior; Wages +0.4% v -1.6% prior.
  • RHP.AU To be acquired by Crayon at A$2.50/shr cash.
  • ESK.AU Reports prelim H1 Rev $4.2M, +76% y/y (guided $3.5-4.0M); Guides H2 contracted Rev $4.2M.
  • WBC.AU Announces sale of Westpac New Zealand Life for NZ$400M to Fidelity Life.
  • (NZ) New Zealand Q2 Business Confidence: +10% v -13% prior; Capacity Utilization: 94.9% v 93.3% prior.
  • (AU) Australia Jun TD Inflation Gauge M/M: +0.4% v -0.2% prior.
  • (AU) Reserve Bank of Australia (RBA): Excess cash at exchange settlement (ES) accounts at A$318.2B v A$313.6B prior (Record high).

Japan

  • Nikkei 225 opened +0.3%.
  • TOEZ.JP President Yamaji: See a “realistic” opportunity that equity trading hours will be extended (currently 5 hours) – press.
  • (JP) Japan May Household Spending M/M: -2.1% v +0.1% prior; Y/Y: 11.6% v 11.1%e.
  • (JP) Japan May Labor Cash Earnings Y/Y: 1.9% v 2.1%e; Real Cash Earnings Y/Y: 2.0% v 2.4%e; Overtime Pay +20.7% y/y; Highest increase since 2013 (oldest comparable data).
  • (JP) Japan Deputy PM Aso: Japan and the US will need to defend Taiwan together in the event of a major problem – Kyodo.
  • (JP) Japan MoF sells ÂĄ900B v ÂĄ900B indicated in 0.7% 30-year JGBs, avg yield 0.6800% v 0.6930% prior, bid to cover: 3.63x v 3.39x prior.

Korea

  • Kospi opened +0.1%.
  • 005380.KR Temporary halts Brazil Pant due to chip shortages – Yonhap.
  • (KR) South Korea Vice Fin Min: To consider normalized eased cap on Bank FX derivatives going forward, Policy normalization may increase FX market uncertainties.

China/Hong Kong

  • Hang Seng opened 0.0%; Shanghai Composite opened 0.0%.
  • (CN) China President Xi spoke with France President Macron and German Chancellor Merkel Monday, saying China was willing to convene the 23rd China-EU leaders’ meeting with the EU at an early date, conduct high-level dialogues in strategic, trade, digital and climate sectors – Xinhua.
  • 700.HK Chinese regulator reportedly to block Tencent’s Video gaming unit merger of Huya and DouYu – press.
  • (CN) China PBoC said to call for more credit supply for small and medium size companies (SMEs).
  • 9868.HK Confirms pricing at HK$165/shr v guidance of max price of HK$180/shr, IPO 4.7x covered.
  • (CN) China PBOC sets Yuan reference rate: 6.4613 v 6.4695 prior.
  • (CN) China PBOC Open Market Operation (OMO): Injects CNY10B in 7-day reverse repos v CNY10B in 7-day reverse repos prior; Net drain CNY20B v Net drain CNY20B prior.
  • (CN) China PBOC Q2 Survey: Business Climate Index (BCI): 59.6% v 56.6% prior (yesterday after the close).
  • (HK) Hong Kong Jun PMI (Whole Economy): 51.4 v 52.5 prior (5th consecutive expansion).
  • (HK) Hong Kong Chief Exec Lam: Proposed changes to privacy law only targets ‘illegal doxxing’ behavior; if any online platforms are concerned about privacy law, Govt officials will be happy to meet with them.
  • (HK) Hong Kong Exchange: Expects to launch T+2 IPO settlement cycle during Q4 2022, which will help speed up IPO process.

Other

  • OPEC+ will continue quotas at current levels, today’s meeting was postponed.
  • (PH) Philippines Central Bank (BSP) Gov Diokno: CPI could remain above 2.0-4.0% target during the near term; Non Monetary measures crucial to easy supply pressures.

North America

  • WBT Ali Group Submits raised binding All-Cash Proposal at $24/shr (prior $23).
  • PFE Israel finding that the COVID vaccine efficacy is more like 64% (prior seen at 96%), so some talk a booster may be needed – press.

Europe

  • VOW3.DE Porsche and Rimac Automobili finalize plans to establish JV that will include Bugatti, To be called Bugatti Rimac.

Levels as of 01:15ET

  • Hang Seng -0.5%; Shanghai Composite -0.4%; Kospi +0.4%; Nikkei225 +0.3%; ASX 200 -0.3%.
  • Equity Futures: S&P500 0.0%; Nasdaq100 -0.2%, Dax +0.0%; FTSE100 -0.1%.
  • EUR 1.877-1.1858; JPY 110.98-110.80; AUD 0.7571-0.7528; NZD 0.7094-0.7018.
  • Commodity Futures: Gold +1.1% at $1802,/oz; Crude Oil +2.1% at $76.76/brl; Copper +0.7% at $4.37/lb.

 

Trade The News
Trade The Newshttp://www.tradethenews.com/
All information provided by Trade The News (a product of Trade The News, Inc. "referred to as TTN hereafter") is for informational purposes only. Information provided is not meant as investment advice nor is it a recommendation to Buy or Sell securities. Although information is taken from sources deemed reliable, no guarantees or assurances can be made to the accuracy of any information provided. 1. Information can be inaccurate and/or incomplete 2. Information can be mistakenly re-released or be delayed, 3. Information may be incorrect, misread, misinterpreted or misunderstood 4. Human error is a business risk you are willing to assume 5. Technology can crash or be interrupted without notice 6. Trading decisions are the responsibility of traders, not those providing additional information. Trade The News is not liable (financial and/or non-financial) for any losses that may arise from any information provided by TTN. Trading securities involves a high degree of risk, and financial losses can and do occur on a regular basis and are part of the risk of trading and investing.

Featured Analysis

Learn Forex Trading