EM LATAM CREDIT: SAUDI PRICE PRESSURE
From MNI Commodities Analyst:
Oil comes under pressure as Bloomberg sources report that Saudi is pushing for higher oil ouput in the months ahead to regain market share.
• Brent AUG 25 down -1.6% at 64.56$/bbl
• WTI JUL 25 down -1.4% at 62.5$/bbl
• Under OPEC+, Saudi are looking to add ‘at least’ 411kbd in August and potentially September the report says.
• OPEC+ already agreed to boost production by 411 kbd in May, June and July.
• The move of unwinding cuts has marked a shift for Saudi that has backed cuts to try and support prices in recent years.
• Reminder that sources led reports were doing the rounds on Friday suggesting OPEC+ was looking for greater cuts than 411kbd on Sunday. They pressured prices but failed to materialize, resulting in prices gaining on Monday following 411kbd being confirmed.
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US STOCKS: Midday Equities Roundup: Dow Leading Gainers for the Moment
- Stocks are trading mixed ahead Midday Monday, SPX eminis and Nasdaq weaker but off lows, while the DJIA is making modest gains. Currently, the DJIA trades up 26.44 points (0.06%) at 41345.01, S&P E-Minis down 22.75 points (-0.4%) at 5686.5, Nasdaq down 96.4 points (-0.5%) at 17881.92.
- Energy, Information Technology and Consumer Discretionary sectors underperformed in the first half, oil and gas shares weighing on the former as crude prices continued to fall (WTI -1.61 at 56.68): APA Corp -3.89%, Occidental Petroleum -3.50%, ConocoPhillips -3.11%, Exxon Mobil -2.71%.
- The tech sector weighed by ON Semiconductor -7.85%, First Solar -5.42% and Apple -3.17%. Meanwhile, Tesla -3.51%, Starbucks -2.60%, Amazon.com -1.18% and NIKE -1.14% weighed on the discretionary sector.
- On the positive side, Industrials and Real Estate sectors led gainers early Monday: Delta Air Lines +3.10%, United Airlines Holdings +2.25%, Uber Technologies +2.12% and Generac Holdings +2.08%.
- Investment trusts buoyed the Real Estate sector: Iron Mountain +1.33%, Digital Realty Trust +1.14% and Equinix +1.04%.
- Latest earnings after the close include: Neurocrine Biosciences, Ford Motor, Mattel Inc, Clorox, Diamondback Energy, Coterra Energy, Vertex Pharmaceuticals, Celanese, Williams Cos, Realty Income, Hims & Hers Health and Palantir Technologies .
OPTIONS: Larger FX Option Pipeline
- EUR/USD: May08 $1.1200(E2.5bln), $1.1250(E1.5bln), $1.1390-00(E3.0bln), $1.1410-20(E1.2bln); May09 $1.1300(E1.3bln)
- USD/JPY: May07 Y145.50-55($1.1bln), Y145.85-00($1.6bln); May08 Y143.00($1.4bln), Y145.00($1.3bln); May09 Y145.00($1.8bln)
- USD/CAD: May09 C$1.3750($1.2bln)
- USD/CNY: May08 Cny7.4500($1.5bln)
MNI EXCLUSIVE: MNI Interviews Ex-BOC Advider on Monetary Policy
- MNI interviews ex-BOC and Finance Dept. adviser on monetary policy, trade war -- On MNI Policy MainWire now, for more details please contact sales@marketnews.com
