Archives of “July 2, 2021” day

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PBOC sets USD/ CNY mid-point today at 6.4712 (vs. yesterday at 6.4709)

  
  Analysis

The People’s Bank of China set the onshore yuan (CNY) reference rate for the trading session ahead.

    • USD/CNY is permitted to trade plus or minus 2% from this daily reference rate.
    • CNH is the offshore yuan. USD/CNH has no restrictions on its trading range.

 

  • The previous close was 6.4700
  • Reuters surveyed estimate was  …. 6.4676 (A rate that’s significantly stronger or weaker than expected is typically considered a signal from the PBOC).

OPEC+ scheduled meeting July 1, now postponed to Friday.

  
Analysis, Crude

Reuters conveying a statement from Iraqi Oil Minister Ihsan Abdul Jabbar, to the effect that:

  • the OPEC+ meeting has been postponed until Friday
  • is to enable completion of consultations and discussions, so they work towards agreement
I posted earlier on this delay here:
  • A big Friday coming up – NFP and OPEC+ meeting (they need more time!)

It seems the UAE has alternative proposals to be further discussed, along the lines:

  • UAE wants to increase its production significantly
  • cuts would have to come from Russia and Iraq to accommodate the higher UAE output

A big Friday coming up – NFP and OPEC+ meeting (they need more time!)

  
  Analysis

The US nonfarm payroll report is out on Friday (US time) and that’s not all!

The OPEC+ snowflakes were unable to reach agreement at the scheduled July 1 meeting so its rolling over into another day.
Chatter of what has been happening at the OPEC talks so far (in summary):
  • United Arab Emirates blocked the plan to reduce supply cuts (hence more negotiations needed)
  • the group is floating plans to increase output by 400k barrels / day / month from August to December 2021
We will have to await the conclusion of the meeting Friday. OPEC talks can result in surprise decisions. About the only thing we can say at present is that there appears to be some quite significant disagreement between cartel members, this delay in talks is unusual.
The US nonfarm payroll report is out on Friday (US time) and that's not all!

US stocks close higher. S&P trades to another record close

  
Analysis, US Market

Nasdaq lags and closes marginally higher

The major US indices are closing the day higher with the S&P index leading the way. The S&P index is up for the six consecutive day and closes at a record level.
  • New highs 214 versus new lows of 11
  • Dow closes near session highs
  • Dow up for the third straight day
  • energy outperforms as crude oil reaches multiyear high
  • S&P closes at a new all-time high
  • closes at a record high for the six consecutive day

A snapshot of the closing levels shows

  • S&P index rose 22.44 points or 0.52% at 4319.94
  • NASDAQ index rose 18.42 points or 0.13% at 14522.38
  • Dow industrial average rose 131.02 points or 0.38% at 34633.53
  • Russell 2000+18.8 points or 0.81% at 2329.34

Leading the Dow 30 today include: (more…)

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