06/07/2021 Asian stocks are mixed, US Futures slightly better and treasuries weaker as traders weighed a jump in crude oil prices following the collapse of a deal among OPEC+ leaders to boost output next month. OPEC+ was plunged into crisis as a worsening fight between Saudi Arabia and the United Arab Emirates blocked an oil-supply increase. The breakdown of talks has sent crude climbing toward $80 a barrel. But it also raises the risk of a price war if the conflict escalates.
Locally, Naspers and Prosus were down 6.07 and 5.96 percent respectively dragging the All Share down 0.24%. Sasol led the gainers up 2.41% as Oil continued to pop. We should see a better start today as Tencent trades slightly better up 0.24% and IG Markets are up 201 points.
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European stocks are expected to see a muted open with investors keeping a close eye on the oil markets after talks between members of the OPEC+ oil producing alliance were abandoned. Futures across the region are a touch softer. Data releases in Europe today include euro zone retail sales in May, German industrial orders in May and the ZEW survey of economic sentiment in Germany.
In the U.S stock futures are flat to slightly better as Wall Street gets set to kick off the holiday-shortened week with the S&P 500 at a record high. Dow Futures are up 28 points, S&P flat and Nasdaq futures down 25 points. The S&P 500 is coming off a seven-day winning streak, its longest since August, amid a string of solid economic reports including a better-than-expected jobs report on Friday. The tech-heavy Nasdaq Composite also reached a record high in the previous session. The economy added 850,000 jobs last month, according to the Bureau of Labor Statistics. Economists surveyed by Dow Jones were expecting an addition of 706,000. The S&P 500 is up nearly 16% year to date.
Shares in major Asia-Pacific markets struggled for direction as investors reacted to the Australian central bank’s interest rate decision. The Reserve Bank of Australia announced Tuesday its decision to keep the cash rate target at 0.1%, the ASX 200 is trading 0.79 % lower, with the Aussie mining index down 0.09%. Tencent has consolidated a bit trading up 0.27% after yesterday’s Chinese Tech sell-off, however the Hang Seng is 0.6 % lower. MSCI’s broadest index of Asia-Pacific shares outside Japan fell about 0.1%.
Gold prices are hovering close to a two-week high, helped by a subdued dollar, while investors wait minutes from the U.S. Federal Reserve’s June policy meeting for more clarity on monetary policy going forward. Spot Gold is at $ 1805 up 0.75%, Platinum up 1.2 % at $ 1113 and Palladium up 0.24% at $ 2824.
Steel prices in China gained for a second day to reach a more than three-week high as investors weighed the consumption outlook in the world’s second biggest economy, and its commitment to rein in production. Steel rebar futures climbed 1.3% and hot-rolled coil jumped 1.8% in Shanghai by 10:08 am. local time, on track for the highest close since June 11. Iron orefutures in Singapore rose 0.7% to $210.10 a ton, while contracts in Dalian jumped 0.9%.