Oil rises 3% on US debt ceiling progress
2023-06-02
Summary:
Global equities rose on Thursday after the U.S. House of Representatives passed a bill to raise the federal debt ceiling, while U.S. Treasury yields fell as data reflected a cooling labor market.
Global equities rose on Thursday after the U.S. House of Representatives passed a bill to raise the federal debt ceiling, while U.S. Treasury yields fell as data reflected a cooling labor market.
Oil prices were buoyed by optimism from the passage of the debt ceiling bill that could underpin consumer demand despite reports that U.S. crude inventories rose last week.
The dollar was on track for its worst daily loss in nearly a month as U.S. manufacturing data and Fed officials make case for a pause. Gold gained nearly 1% to a more than one-week peak.
Commodities
Oil prices rose by the most in two weeks ahead of an OPEC+ meeting on Sunday. Four sources from OPEC+ told Reuters that the alliance is unlikely to deepen supply cuts.
U.S. Crude Oil stockpiles rose unexpectedly last week, as imports jumped and strategic reserves dropped to their lowest since Sept. 1983, according to data from the EIA.
The U.S. Senate will stay in session until it passes the bill, Democratic Majority Leader Chuck Schumer said, with just four days left to pass the measure and avert a catastrophic default.
‘There’s some kind of safe-haven demand supporting gold because of uncertainty regarding the debt ceiling bill,’ said Commerzbank analyst Carsten Fritsch.
Forex
Fed officials pointed toward a rate hike "skip" at its June 13-14 meeting, giving time for the central bank to assess the impact of its tightening cycle thus far against still-strong inflation data.
U.S. manufacturing contracted for a seventh straight month in May as new orders continued to plummet, while the number of new U.S. jobless claims increased modestly last week.
The euro recovered from a two-month low after ECB President Christine Lagarde said further policy tightening was necessary and the dollar skid.
money markets are pricing in an 85% chance of a 25 basis point hike when the ECB meets on June 15. Another 25 basis point hike is expected in July, according to Refinitiv.
Wall St may slide the slope of hope
U.S. stocks are influenced by inflation, and experts are cautiously optimistic. Banks raised S&P 500 targets, expecting 5,500 by year-end.
2024-04-24
Gold prices steady on shaky Treasuries
Gold prices steadied on Wednesday after reaching a two-week low from easing Middle East tensions. The fragile bond market may limit further declines.
2024-04-24
Euro outruns sterling with BOE on tenterhooks
The euro stayed flat after rising against the pound last week. UK and EU banks signaled their readiness to act amid easing price pressures.
2024-04-23
