European indices are closing the session mixed

Italy’s FTSE MIB lower. Spain’s ibex unchanged

The major European indices are closing the session mixed. The Italy’s FTSE MIB is lower. Spain’s Ibex is unchanged.  Germany, France, UK are higher.

The provisional closes are showing:
  • German DAX, +0.3%
  • France’s CAC, +0.3%
  • UK’s FTSE 100, +0.5%
  • Italy’s FTSE MIB, -0.2%
  • Spain’s Ibex, unchanged
In the European debt market, the benchmark 10 year yields are all higher with Italy’s yields up the most at 2.4 basis points.
Italy's FTSE MIB lower. Spain's ibex unchanged_

ICYMI- BoA looking for oil to spike to $100

Analysts at the bank looking for Brent to US$100/bbl this year, and into 2022.

Doing a bit of a catch-up on this, BoA research note from Monday Asia time.

BofA citing:
  • tighter oil supply
  • demand higher
  • “We believe that the robust global oil demand recovery will outpace supply growth over the next 18 months, further draining inventories and setting the stage for higher oil prices”
Forecasts (average price over the year)
  • Brent crude $68 per barrel this year (from $63)
  • In 2022 to average $75 (vs. $60 earlier)
  • U.S. shale will likely respond …. ramping up production and Brent $65 per barrel by 2023
Analysts at the bank looking for Brent to US$100/bbl this year, and into 2022.

China and iron ore – the latest regulator concerns

Iron miners: capex will not see strong comeback, says new research -  MINING.COMChina is continuing to investigate and tighten regulations on iron ore trading.

  • China’s state planner, the National Development and Reform Commission (NDRC), has taken the lead. Its jointly investigating, with the State Administration for Market Regulation, trading on the iron ore spot market, will tighten rules on what it calls hoarding and speculation.
  • will “strictly punish and disclose” irregularities such as hyping prices and hoarding,
  • will maintain good market order
Info comes via Reuters, more at that link.
Strong iron ore prices is supportive of the AUD, although its been hard to disentangle the impact amongst developments at the FOMC, especially since last week’s meeting.
UBS expect the iron ore price to fall:
  • Near-term risks for the commodity complex are increasing with the Fed turning more hawkish & China taking action to deflate commodities (eg by selling strategic base metal reserves)
  • we expect this to accelerate the unwinding of the ‘reflation trade’

US Major indices close higher on the day and rally into the close

Dow up nearly 600 points as Fed concerns ease a bit.

All the major indices are closing higher on the day led by the Dow industrial average which rallied near 600 points. Stocks were supported by less hawkish than expected comments from Feds Bullard and Kaplan.
  • S&P rises for the first time five trading days
  • S&P has its best day since May 14.
  • S&P is now positive for the month of June
  • All S&P sectors close higher
  • Dow steps a five-day losing streak
  • All 30 Dow stocks close higher on the day
  • Dow has its biggest day in 3 months
The final numbers are showing
  • S&P index rose 58.25 points or 1.4% at 4224.70
  • NASDAQ index rose 111.10 points or 0.79% at 14141.48
  • Dow industrial average rose 586.57 points or 1.76% at 33876.65
  • Russell 2000+48.35 points or +2.16% at 2286.09
Leading the way in the Dow is American Express which rose 4.25%.  The tops 10 gainer include:
Dow up nearly 600 points as Fed concerns ease a bit.
Others winners today include:
  • Schlumberger, +5.78%
  • Charles Schwab, +4.17%
  • Wells Fargo, +3.64%
  • DoorDash, +3.44%
  • PNC financial, +3.27%
  • General Dynamics, +3.07%
  • Marriott +2.96%
  • Emerson, +2.88%
  • Fed Ex +2.74%
  • Bank of America, +2.5%
Some of the losers today include:
  • GameStop, -6.44%
  • AMC, -6.01%
  • Uber, -3.2%
  • Crowdstrike, -2.96%
  • AMD, -2.45%
  • Biogen, -1.94%
  • AirBnB, -1.85%
  • Tencent, -1.8%
  • Square, -1.39%
  • Zoom, -1.3%
Go to top