Stock Market Live Updates: On Monday, a selloff followed a series of bad news over the long weekend, sending benchmark indices down nearly 2%, their biggest drop in seven months. The trend is likely to continue today.
Oil slips as investors assess response to OPEC+ reserve release
Oil slipped ahead of an expected announcement by the US on a coordinated release of reserves, with OPEC+ warning it may not restore crude to global markets if consumers go ahead with the move.
Futures in New York fell to $76 a barrel on Monday after rising 0.9%. According to people familiar, the US is preparing to announce the release in coordination with other countries as soon as Tuesday. Together with India, Japan and South Korea, this move will be an unprecedented effort by consumers to reduce prices. China said it was also working to tap the reserves.
OPEC+ representatives said the release of millions of barrels is unreasonable under current market conditions and the group may have to reconsider plans to add more oil when they meet next week. Meanwhile, a Covid-19 resurgence in the US and Europe is raising concerns about the demand outlook.
The rift between producers and consumers threatens to trigger a fight for control of the global oil market.
Yield, Dollar. Adulteration in Asian stocks after a jump in
Asian stocks were mixed on Tuesday after Treasury yields and the renaming of Jerome Powell as head of the Federal Reserve edged up the dollar.
Shares rose in Australia but fell in South Korea, while Japan is closed for a holiday. US equity futures were volatile after the S&P 500 ended in the red and the Nasdaq 100 underperformed after last-hour selloff in technology stocks in the Wall Street session.
Treasuries declined with market pricing in full quarter-point rate hikes at the June Fed meeting and a good chance of a second by September and a third by December to fight inflation. Powell and the other Fed’s main candidate, Governor Lyle Brainard, were seen as having broadly similar policy stances, but Brainard as somewhat more liberal.
Cash Treasury will not do business in Asia due to the Japan holiday. The dollar maintained its highest level since September 2020 and the bullion declined. Oil retreated ahead of an expected announcement by the US on a coordinated release of reserves.
Never miss a story! Stay connected and informed with Mint.
download
Our App Now!!
,