ASX to rise, global stocks stage relief rally


The “move in stocks is in line with the market’s long-standing confidence in abundant and predictable cash injections,” Mohamed El-Erian said in a tweet.

BHP plans to pull out of oil and gas in a multibillion-dollar exit as it seeks to accelerate its withdrawal from fossil fuels, Bloomberg News reported, citing people familiar with the matter.

The world’s largest miner is reviewing its oil business and considering options, including a commercial sale, the report said, adding that deliberations are still in their infancy and no final decisions have been made.

Oil, which punctuated the losses of all asset classes the day before, also rebounded. Benchmark oil and US oil were up about 1% in trade early in the afternoon in New York.

Goldman has lowered its forecast for Brent crude oil to US $ 75 a barrel for the third quarter, US $ 5 lower than its previous estimate, as an increase in COVID-19 delta variant cases wreaks havoc on demand.

The British pound hit a more than five-month low against the US dollar and traded near a five-week low against the euro as broad demand for the dollar safe haven amid a surge global coronavirus infection has made investors nervous.

Bitcoin fell to its lowest level in nearly a month, falling below US $ 30,000 as regulators continued to call for tighter cryptocurrency controls.

Agenda of the day

Local: Westpac leading index June, preliminary retail sales June

Data Abroad: Credit Card Spending in New Zealand in June

Market highlights

ASX futures up 44 points or 0.6% to 7205 around 3:20 a.m. AEST

  • AUD -0.3% to 73.24 US cents
  • Bitcoin on bitstamp.net -3.6% at US $ 29,682.30 at 3:35 am AEST
  • On Wall St around 1:25 p.m.: Dow + 1.7% S&P 500 + 1.6% Nasdaq + 1.5%
  • In New York: BHP + 1.9% Rio + 0.9% Atlassian + 2%
  • Tesla + 0.5% Apple 3% Alphabet + 1.7% Facebook + 1.2%
  • In Europe: Stoxx 50 + 0.7% FTSE + 0.5% CAC + 0.8% DAX + 0.6%
  • Spot gold -0.1% at US $ 1,811.27 / oz at 1:06 p.m. New York time
  • Brent crude + 1% at US $ 69.27 per barrel
  • US oil + 1.1% to US $ 67.16 per barrel
  • Iron ore n / a
  • Yield at 2 years: United States 0.19% Australia 0.03%
  • 5-year yield: US 0.68% Australia 0.59%
  • 10-year yield: US 1.21% Australia 1.17% Germany -0.41%
  • American prices from 1:06 p.m. in New York

From today’s financial review

Crown “is not fit to run Vic’s casino”: Crown Resorts should be stripped of the sole casino license of Victoria and its executive chairman Helen Coonan and Crown Melbourne CEO Xavier Walsh, according to the investigation.

What did the president of Oil Search think? The chairman of Oil Search’s clumsy management of both the untimely exit of his CEO and the responsibility to keep the market informed has damaged the company’s reputation.

Pressure from JobKeeper is increasing as lockdowns worsen: The federal government faces new calls to bring JobKeeper back as Victoria extends its COVID-19 lockdown for another seven days and South Australia closes its doors.

United States

Jeff Bezos, the richest man in the world, climbed about 70 miles above the Texas desert aboard his company Blue Origin’s New Shepard launcher and returned safely to Earth, a historic suborbital flight that helps usher in a new era of commercial space tourism.

“Best day ever,” said Bezos, accompanied by the world’s oldest and youngest space travelers, after his space capsule descended with three large parachutes and landed, raising a cloud of clouds. dust.

Consumer Reports said Tesla’s “Full Self-Driving” software lacked guarantees and expressed concerns about using the system on public roads putting the public at risk, citing driver reports.

The influential consumer publication cited videos posted on social media of drivers using it and raised concerns about issues including “vehicles missing corners, rubbing against bushes and heading towards parked cars.”

Apple will delay the return of its employees to the office by at least a month until October at the earliest, as cases of COVID-19 reappear in the United States and abroad.

Europe

European stocks stabilized on Tuesday after their worst selloff this year in the previous session, helped by a handful of positive corporate earnings and production updates from miners.

The pan-European STOXX 600 index rose 0.5%, rebounding from a 2.3% drop on Monday.

Miners, among the sectors that suffered the brunt of Monday’s massive sales, rose 1.5% after BHP Group and Anglo American provided bullish production figures.

Swiss bank UBS climbed 5.3% after posting a 63% jump in net profit in the second quarter, helped by booming wealth management business. The peers Credit Suisse and Julius Baer also rose.

“We expect European (economic) growth to peak this summer (but) will continue to favor risky assets over a 12-month horizon,” analysts at BCA Research wrote in a note.

British airline easyJet gained 0.9% after announcing it planned to fly 60% of its capacity before the pandemic from July to September, while Carnival rose 3.3% as it expects to resume its cruises with 65% of its total fleet. capacity by the end of 2021.

Travel to europe & The leisure index fell sharply from its April highs as travel-related stocks hit by the surge in infections across the continent and last-minute changes to travel rules.

Asia

Chinese stocks ended lower on Tuesday after Beijing kept its key rate unchanged despite rising expectations of a cut. At the close, the Shanghai Composite index remained stable at 3,536.79.

The blue-chip CSI300 index fell 0.1%, as its financial sector sub-index fell 1.2%.

In Hong Kong, the Hang Seng Index finished down 230.53 points or 0.8% to 27,259.25. The Hang Seng China Enterprises index fell 0.9% to 9,864.57.

The real estate industry has been hit by concerns about the China Evergrande group’s cash flow, which fell 10.2% to be the biggest percentage decline in H shares. The company’s bonds also fell.

Concerns about Evergrande’s financial health persisted even after a local housing authority lifted a previous suspension of sales in two real estate projects.

Currencies

ING Economics assesses the prospect of a short-term rate hike across Tasman: “We believe the probability of a rate hike as early as August is around 50% and will depend on incoming data.

“There are two main versions that will be looked at, both referencing 2Q21. First, the inflation report due on Friday: the consensus is at 2.7% yoy for the headline CPI, and any upside surprises could fuel speculation around an increase in August.

“However, we believe that the employment data will be more important, as the RBNZ has already addressed the subject of the inflation spikes in the 2nd and 3rd quarters and considers them temporary. The jobs report will be released on the 4th. August, and that’s when we can say with more confidence whether a rate hike is likely over the summer.

ING also said that market prices suggest that an August hike (we are talking about 25bp hikes here) is around 65%, an October hike is 86%, and a November hike is entirely. in the price.

Chinese policymakers have kept the one-year loan prime rate (LPR) at 3.85%. The five-year LPR remained at 4.65 percent. The rate remained unchanged for the 15th consecutive month, despite rising expectations of a cut after a surprise drop in bank reserve requirements.

The stable LPR, coming after the central bank kept the medium-term lending facility (MLF) lending rate unchanged last week, suggests policymakers are looking to avoid large-scale easing.

Forecasters warn against the Aussie: Forecasters have warned the Australian dollar could fall below US 70 for the first time in nearly eight months amid lockdown orders in Sydney and Victoria.

Read This Before You “Cryptocharge” Your Super: Before looking for cryptocurrency gains, there are some important regulatory and investment issues that you will need to consider.

Merchandise

Steel ingredients futures on China’s Dalian Commodity Exchange rose on Tuesday as coking coal jumped more than 3% due to supply shortages.

Benchmark iron ore futures on the Dalian Stock Exchange ended 0.3% at 1,233 yuan per tonne.

“Despite the current tightening in the supply of iron ore, particularly from Australia, we believe prices are still fundamentally overvalued relative to the marginal producer at the highest cost on the cost curve,” said Atilla Widnell, Managing Director of Navigate Commodities in Singapore.

U.S. oil company Halliburton said the industry was in the early stages of a multi-year bull cycle as activity rebounded from pandemic lows and prices for some of its services edged up.

The Houston, Texas-based company reported a 33.5% increase in second-quarter profits from the previous three months, with rising crude prices supporting demand for oil services.

Australian equity market

Stock market returns to pre-pandemic levels: CA ANZ survey reflects higher levels of market confidence than seen since at least 2019, despite delta outbreaks and capital lockdowns.

Australian stocks fall 0.5 pc at the end of the global sell-off: Australian stocks closed lower on Tuesday with the S&The P / ASX 200 index fell 0.5% to 7252 points. Oil Search rose 6.3% to $ 3.90.

Talk about the street

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