Oil Slips As China Covid Outbreaks Widen
Oil prices were subdued on Tuesday after rising more than 2 percent the previous day amid supply concerns, driven by lower OPEC output and a strike in Norway.
Brent crude futures for September delivery fell 0.9 percent to $112.52 per barrel, while WTI crude futures for August settlement were marginally higher at $108.53.
The focus returned to Fed tightening and a possible global slowdown after a survey showed business growth across the euro zone slowed further last month, partly due to inflationary pressures.
Signs of a flare-up in COVID-19 cases in China also added to global growth worries and offset signs of an easing in U.S.-Sino tensions.
Chinese authorities scrambled to contain fresh outbreaks, with cases reported from at least nine provinces as of Monday, weeks after the government brought Shanghai’s crippling early summer epidemic under control.
Elsewhere, Norwegian offshore workers began a strike today that is expected to reduce oil and gas output by as much as 130,000 barrels per day from Wednesday. Workers are demanding wage hikes to compensate for rising inflation.
The Norwegian Labor Ministry reiterated that it was following the conflict “closely” and would intervene if there are exceptional circumstances.
Gold Subdued In Cautious Trade As Recession Worries Mount
Gold prices were subdued on Tuesday as the dollar’s strength offset a retreat in U.S. Treasury yields.
Spot gold dipped 0.3 percent to $1,803.18 per ounce, while U.S. gold futures were marginally higher at $1,803.30.
The euro slumped to a two-decade low as the latest surge in European gas prices added to worries about a recession.
Investor morale across the 19-country euro zone plunged to its lowest level since May 2020, pointing toward an “inevitable” recession.
A survey showed business growth across the euro zone slowed further last month, partly due to inflationary pressures.
Central bank action remained in focus after the Reserve Bank of Australia raised its cash rate by 50 basis points to 1.35 percent, its third successive increase to combat inflation, and flagged more tightening ahead.
The Bank of England said in its latest biannual Financial Stability Report that the global economic outlook has “deteriorated materially” and that banks should ramp up capital buffers to ensure they can weather the storm.
The Fed releases the minutes of its latest policy-setting meeting on Wednesday while the minutes of the ECB’s previous policy meeting are due on Thursday.
Pre-market Movers: ABEO, STAF, NLIT, WTI, KAL…
The following are some of the stocks making big moves in Tuesday’s pre-market trading (as of 07.25 A.M. ET).
In the Green
W&T Offshore, Inc. (WTI) is up over 16% at $5.00
Royal Gold, Inc. (RGLD) is up over 11% at $122.98
Cowen Inc. (COWN) is up over 11% at $26.88
Yield10 Bioscience, Inc. (YTEN) is up over 11% at $2.50
OneConnect Financial Technology Co., Ltd. (OCFT) is up over 11% at $2.06
Gerdau S.A. (GGB) is up over 8% at $4.58
Companhia Siderúrgica Nacional (SID) is up over 8% at $3.05
Diamondback Energy, Inc. (FANG) is up over 6% at $128.97
Lytus Technologies Holdings PTV. Ltd. (LYT) is up over 6% at $5.45
Gold Royalty Corp. (GROY) is up over 6% at $2.50
In the Red
Abeona Therapeutics Inc. (ABEO) is down over 26% at $3.51
Staffing 360 Solutions, Inc. (STAF) is down over 22% at $4.81
Northern Lights Acquisition Corp. (NLIT) is down over 17% at $8.50
Kalera Public Limited Company (KAL) is down over 13% at $3.12
HeartCore Enterprises, Inc. (HTCR) is down over 13% at $2.17
Hawaiian Holdings, Inc. (HA) is down over 11% at $12.95
Restaurant Brands International Inc. (QSR) is down over 9% at $46.60
WPP plc (WPP) is down over 8% at $46.10
Femasys Inc. (FEMY) is down over 8% at $1.84
Micro Focus International plc (MFGP) is down over 7% at $3.13
Stellantis N.V. (STLA) is down over 6% at $11.65
Aegon N.V. (AEG) is down over 6% at $4.20
Howmet Aerospace Inc. (HWM) is down over 5% at $29.90
Takeaway giant Pret A Manger launches affordable menu
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Work from-home advice and lockdowns during the pandemic hit the takeaway giant hard.
But it said it returned to profitability in March.
This week Pret launched a new affordable menu range to help people who are feeling the pinch with the cost-of-living crisis.
Accounts just filed at Companies House showed it made an operating loss of £225.9million in 2021, down from £343million in 2020.
Sales for the first half of 2022 reached £357.8million, up 230 percent on last year.
Eurozone Investor Confidence Hits 26-Month Low
Eurozone investor confidence weakened notably to a 26-month low in July, raising fears of a recession, results of a closely-watched survey showed Monday.
The investor confidence index slid more-than-expected to -26.4 in July from -15.8 in June, the survey by the behavioral research institute Sentix revealed.
After improving sharply in June, the score was expected to fall moderately to -19.9. The latest reading was the lowest since May 2020.
“June did not really represent a stabilization,” Sentix said. “We were only in the eye of the storm.”
The current situation index came in at a 16-month low of -16.5 in July versus -7.3 in June. At the same time, the expectations index declined considerably to -35.8, the weakest since 2008, from -24.0 in the previous month.
The agency said the current decline in situation scores justify the expectation that a recession is inevitable. The task now is to determine the depth of such a recession.
The former locomotive of the Eurozone economy is also sliding into an economic crisis, Sentix said. Germany’s investor confidence index declined notably to -24.2 in July from -12.8 in June.
The current situation index fell to -13.0 in July from -2.0 in June. At the same time, the expectations index hit an all time low of -34.8.
The survey was conducted among 1,240 investors between June 30 and July 2.