Stock & Commodities Related News.

US STOCKS SNAPSHOT-Wall St opens lower on trade woes, moderate retail sales data - Reuters News

15-May-2018 09:34:44 PM

May 15 (Reuters) - Wall Street opened lower on Tuesday on concerns over lack of progress in U.S.-China trade talks and investors assessing U.S. retail sales data that showed moderate gains last month.

The Dow Jones Industrial Average fell 89.86 points, or 0.36 percent, at the open to 24,809.55.

The S&P 500 opened lower by 11.54 points, or 0.42 percent, at 2,718.59. The Nasdaq Composite dropped 50.01 points, or 0.67 percent, to 7,361.30 at the opening bell.

(Reporting by Medha Singh in Bengaluru; Editing by Arun Koyyur)

 

 

 

US STOCKS-Wall Street drops on trade woes, moderate retail sales data - Reuters News

15-May-2018 09:19:02 PM

• US-China still 'very far apart' on trade-U.S. ambassador
• Mexico does not sees NAFTA deal coming this week
• April retail sales up 0.3 pct, vs. 0.8 pct rise in March
• Home Depot drops as sales misses estimate, drags Lowe's
• Futures down: Dow 0.59 pct, S&P 0.53 pct, Nasdaq 0.83 pct

By Medha Singh

May 15 (Reuters) - U.S. stock index futures dropped on Tuesday as investors were worried about a lack of progress in U.S.-China trade talks and assessed U.S. retail sales data that showed moderate gains last month.

The United States and China are still "very far apart" on resolving trade frictions, U.S. Ambassador to China Terry Branstad said, as a second round of high-level talks were set to begin in Washington.

Adding to the trade woes, Mexico's economy minister Ildefonso Guajardo said he does not expect to meet a deadline this Thursday to reach a new North American Free Trade Agreement that could be presented to the U.S. Congress.

U.S. retail sales increased a moderate 0.3 percent in April, compared with an upwardly revised 0.8 percent surge in March, as rising gasoline prices weighed on discretionary spending, the Commerce Department said.

However, the rise in core retail sales, which excluded automobiles, gasoline, building materials and food services, showed consumer spending appeared on track to accelerate after slowing sharply in the first quarter.

Following the data, benchmark U.S. Treasury yields hit 3.037 percent, a key breakout level, before gaining further to 3.043 percent, their highest since July 2011.

"It's a combination of less good news from China trade situation, a bit of a seasonal miss on Home Depot and tick up in the yield on 10-year that conspires to be the story ... and unraveled some of that positive feeling we had yesterday," said Art Hogan, chief market strategist at B. Riley FBR in Boston.

"The (retail sales) data is impressive, the yield on the 10-year is reflective of that, and that we get further noise on 3 percent and that becomes an issue."

Shares of Home Depot Inc slipped 2.5 percent in premarket trading after the No.1 U.S. home improvement chain missed Wall Street forecasts for sales at established stores as an unusually long winter hit demand for typical spring products.

Smaller rival Lowe's was down 1.7 percent.

At 9:09 a.m. ET, Dow e-minis were down 147 points, or 0.59 percent. S&P 500 e-minis were down 14.5 points, or 0.53 percent and Nasdaq 100 e-minis were down 58 points, or 0.83 percent.

Even oil prices, which have helped boost the stock market in recent days, touching a 3-1/2-year high, did not offer succor on the day.

Among stocks, Agilent Technologies dropped 7.0 percent after posting a disappointing quarterly forecast late on Monday.

Ford dipped 0.9 percent after Piper Jaffray cut its rating to "neutral" on the automaker's shares.

Symantec rose 3.0 percent after the anti-virus maker's bullish 2020 forecast eased concerns over the impact of an internal accounting probe.

(Reporting by Medha Singh in Bengaluru
Editing by Saumyadeb Chakrabarty)

 

 

 

UPDATE 6-Oil hits multi-year high on tight supply, Iran sanctions - Reuters News

15-May-2018 09:53:15 PM

• Strong global demand has been outstripping production
• Supply overhang of 2014-2017 virtually eliminated -OPEC
• China refinery demand at second-highest level on record

Updates prices in paragraphs 2-3

By Christopher Johnson

LONDON, May 15 (Reuters) - Oil prices hit a 3-1/2-year high on Tuesday, supported by tight supply and planned U.S. sanctions against Iran that are likely to restrict crude oil exports from one of the biggest producers in the Middle East.

Brent crude oil reached an intraday peak of $79.47 a barrel, up $1.24 and its highest since November 2014, before easing to $78.28, up 5 cents, by 1345 GMT.

U.S. light crude was 15 cents lower at $70.81 a barrel, also not far off its highest since November 2014.

World oil prices have surged by more than 70 percent over the last year as demand has risen sharply but production has been restricted by the Organization of the Petroleum Exporting Countries, led by Saudi Arabia, and other producers including Russia.

Now the United States has announced it will impose sanctions on Iran over its nuclear programme, raising fears that markets will face shortages later this year when trade restrictions come into effect.

"Oil prices are touching fresh multi-year highs as robust demand prospects coupled with a tense geopolitical backdrop make for a potent bullish cocktail," said Stephen Brennock, analyst at London brokers PVM Oil Associates.

Norbert Rücker, head of macro and commodity research at private bank Julius Baer, said that at the top of everyone's mind was "the potential impact on Iranian oil exports and thus the risk of another meaningful supply disruption".

In China, the world's biggest oil importer, refinery runs rose nearly 12 percent in April compared with a year earlier, to around 12.06 million barrels per day (bpd), marking the second-highest level on record on a daily basis, data showed.

The tightening market has all but eliminated a global supply overhang which depressed crude prices between late 2014 and early 2017.

OPEC figures published on Monday showed that oil inventories in OECD industrialised nations in March fell to 9 million barrels above the five-year average, from 340 million barrels above the average in January 2017.

U.S. crude is trading at a hefty discount to Brent, the international marker, thanks to sharp rises in U.S. production to 10.7 million bpd, which has left the American domestic oil market well supplied.

U.S. shale oil production is expected to rise by about 145,000 bpd to a record 7.18 million bpd in June, the U.S. Energy Information Administration said on Monday.

The Permian basin in Texas, the biggest U.S. oil patch, is expected to see output climb 78,000 bpd to a fresh record of 3.28 million bpd.

(Additional reporting by Henning Gloystein in Singapore;
Editing by Susan Fenton and Dale Hudson)

 

 

 

PRECIOUS-Gold hits fresh 2018 low as rising yields lift dollar - Reuters News

15-May-2018 09:31:59 PM

• Strong U.S. bond yields underpin dollar
• SPDR Gold holdings down 0.17 percent on Monday

 (Releads, updates prices)

By Maytaal Angel

LONDON, May 15 (Reuters) - Gold slid more than 1 percent on Tuesday, falling for a third day to hit its lowest this year as a rise in U.S. borrowing costs pushed up the dollar and overshadowed the impact of strife in Gaza.

Downward momentum in gold picked up after the metal broke below support at its 200-day moving average at $1,306 an ounce. That had firmly underpinned prices earlier this month.

Spot gold was down 1.2 percent to $1,207.06 an ounce by 1304 GMT, having earlier hit its lowest since late December at $1,296.31. U.S. gold futures for June delivery were down 1.6 percent to $1,296.90 an ounce.

Israeli troops shot dead dozens of Palestinian protesters on the Gaza border on Monday when the high-profile opening of the U.S. embassy to Israel in Jerusalem by the Trump administration raised tension to boiling point.

But gold investors were fixated on the dollar, which rose versus a currency basket as 10-year U.S. bond yields shot above 3 percent, sending borrowing costs higher in a number of other countries.

"The market is getting increasingly disappointed about (gold's) inability to react to those (geopolitical) drivers," said Ole Hansen, head of commodity strategy at Saxo Bank.

"We're up against bond yields, the dollar and the fact that rising oil prices have at this stage accelerated expectations for rate hikes in the United States, due to the risk of inflation."

A Federal Reserve official this week backed the case for further interest rate hikes in the United States, saying inflation had not yet reached the U.S. central bank's 2 percent goal in a sustained way.

Higher U.S. interest rates tend to boost the dollar and push up bond yields, making greenback-denominated gold more expensive for holders of other currencies and denting the appeal of non-yielding assets such as gold.

"The market's been waiting for the next rate hike by the Fed ... and I think gold prices are going to remain under pressure till we get through that hike," ANZ analyst Daniel Hynes said in a note.

Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.17 percent to 856.17 tonnes on Monday.

Silver was down 1.5 percent at $16.25 an ounce, having hit its lowest in nearly two weeks in earlier trade at $16.22 an ounce.

Platinum was down 0.9 percent at $896.49 per ounce, while palladium was 3 percent lower at $965.25 an ounce having broken below support at its 200-day moving average, currently at $988 an ounce.

Britain's Competition and Markets Authority said on Tuesday it would examine whether a takeover of miner Lonmin by South Africa's Sibanye-Stillwater would lessen competition.

 

(Additional reporting by Jan Harvey in London and Apeksha Nair in Bengaluru
Editing by Dale Hudson/Keith Weir)

 

 

 

METALS-Copper dips as dollar and inventories climb - Reuters News

15-May-2018 08:03:30 PM

• Funds still short copper
• Copper support at $6,840, near the 200-day moving average

Recasts, adds comment, changes dateline from Singapore

By Pratima Desai

LONDON, May 15 (Reuters) - Copper eased on Tuesday under pressure from negative sentiment fuelled by a higher dollar and rising inventories, though upbeat industrial production data from China limited losses.

Benchmark copper on the London Metal Exchange was down 0.3 percent at $6,885 a tonne by 1240 GMT, with subdued activity that traders said was because of an industry gathering in Hong Kong for LME Week Asia.

"A lot of what is going on in base (metals) is related to the dollar," said Peter Fertig, analyst at Quantitative Commodity Research.

"China's economy is in good shape, industrial production is strong and its lending figures are a positive for the construction and housing market."

 

DOLLAR: A higher U.S. currency dollar makes dollar-denominated metals more expensive for holders of other currencies, which could dent demand.

INDUSTRY: China's industrial output rose 7 percent in April, above forecasts for a 6.3 percent increase and up from a seven-month low of 6 percent in March.

LOANS: Chinese banks extended 1.18 trillion yuan ($185.5 billion) in net new yuan loans in April. The forecast was for 1.1 trillion yuan compared with March's 1.12 trillion yuan.

PROPERTY: "As China dominates demand for most metals, its monthly update on the economy is watched closely, in particular with regard to the metals-intensive infrastructure and property sectors," Julius Baer analysts said in a note.

TECHNICALS: A sustained break above $6,890, where the 21-day moving average currently sits, could see a move towards $6,970, the 100-day moving average. Support is at $6,840, near the 200-day moving average.

INVENTORIES: Stocks of copper in LME-approved warehouses are at 291,350 tonnes, up nearly 10,000 tonnes since last Thursday. Copper stocks in warehouses monitored by the Shanghai Futures Exchange are at nearly 280,000 tonnes, compared with close to 250,000 at the end of April.

POSITIONING: Traders said many funds are still short copper.

"Having registered a net speculative short of 2.7 percent of open interest on the May 8, a level not seen since Sept 2016, positioning in copper is now a net speculative short of 1.8 percent of open interest, or 3,300 lots (of 25 tonnes each)," Marex Spectron said.

PRICES: Aluminium was down 0.5 percent at $2,307 a tonne, zinc gained 0.6 percent to $3,074, lead fell 0.4 percent to $2,376, tin was down 0.1 percent at $20,920 and nickel added 0.3 percent to $14,545.

($1 = 6.3610 Chinese yuan renminbi)

 

(Editing by David Goodman)

 

 

 

CBOT Trends-Wheat and corn up 1-2 cents, soybeans mixed - Reuters News

15-May-2018 09:29:19 PM

CHICAGO, May 15 (Reuters) - Following are U.S. trade expectations for the resumption of grain and soy complex trading at the Chicago Board of Trade at 8:30 a.m. CDT (1330 GMT) on Tuesday.

 

WHEAT - Up 1 to 2 cents per bushel

• Wheat higher on a technical bounce after the CBOT July contract dipped to $4.90, a two-week low, in early moves.
• Trade awaits the results of an international wheat purchase tender from Egypt's main state wheat buyer.
• The USDA late Monday rated 36 percent of the U.S. winter wheat crop in good to excellent condition, up from 34 percent the previous week and above trade expectations for no change.
• The USDA said the U.S. spring wheat crop was 58 percent seeded, lagging the five-year average of 67 percent.
• The CBOT reported 16 deliveries against the expired May contract and 10 K.C. May wheat deliveries.
• CBOT July soft red winter wheat last up 1-1/2 cents at $4.92-3/4 per bushel. K.C. July hard red winter wheat last traded unchanged at $5.09-3/4 and MGEX July spring wheat was up 3-1/4 cents at $6.04-3/4 a bushel.

CORN - Up 1 to 2 cents per bushel

• Corn headed higher on technical buying and worries about dry weather curbing yields in Brazil. Upward momentum limited by a stronger-than-expected U.S. planting pace in the latest week.
• The USDA late Monday said the U.S. corn crop was 62 percent planted, near the five-year average of 63 percent and above an average of trade expectations for 59 percent.
• The CBOT reported 103 deliveries against the expired May corn contract.
• CBOT July corn last up 2 cents at $3.98-1/2 a bushel.

SOYBEANS - Mixed, down 1 cent per bushel to up 1 cent

 

• Soybeans turning mixed, paring early advances as pressure from a stronger-than-expected U.S. planting pace last week offset support from optimism about a resolution to the U.S.-China trade dispute.
• Some traders drew hope from U.S. President Donald Trump's pledge on Sunday to help Chinese technology company ZTE Corp as signaling an attempt to ease trade tensions between the two countries.
• The USDA late Monday said the U.S. soybean crop was 35 percent planted, ahead of the five-year average of 26 percent and above an average of trade expectations for 30 percent.
• Ahead of the National Oilseed Processors Association's monthly crush report later on Tuesday, analysts on average expected the trade group to report that is member crushed 160.966 million bushels of soybeans in April.
• Deliveries against the expired CBOT May soybean contract totaled 68 contracts. The CBOT reported 61 May soymeal deliveries and 31 May soyoil deliveries.
• CBOT July soybeans last down 1/2 cent at $10.17-1/4 per bushel.

 

(Reporting by Julie Ingwersen)

 

 

 

VEGOILS-Palm oil extends gains on weaker ringgit - Reuters News

15-May-2018 07:13:19 PM

• Palm posts second day of gains
• Slight strength in U.S. soyoil also supports -trader
• Palm could test resistance at 2,466 rgt/T -technicals

Updates with closing prices

By Emily Chow

KUALA LUMPUR, May 15 (Reuters) - Malaysian palm oil futures rose on Tuesday evening for a second straight session of gains, supported by a weaker ringgit and slight strength in CBOT soyoil futures.

Weakness in the ringgit typically boosts demand by making the tropical oil cheaper for holders of foreign currencies. The ringgit weakened by 0.15 percent to 3.9540 per dollar at the end of the trading day.

The benchmark palm oil contract for July delivery on the Bursa Malaysia Derivatives Exchange was up 0.7 percent at 2,432 ringgit ($615.07) a tonne at the close of trade.

Palm oil jumped nearly 3 percent to a one-month high in intraday trade on Monday, the first session of trade since the stunning election defeat of a coalition that ruled the country for six decades. It closed with a gain of 1.5 percent.

Trading volume stood at 49,160 lots of 25 tonnes each on Tuesday evening.

"The ringgit was still weak and a positive CBOT soyoil also lent a helping hand," said a futures trader in Kuala Lumpur.

The market rose despite reports of weaker exports of Malaysian palm oil products on Tuesday, traders said.

Exports for May 1-15 fell 14.9 percent from a month earlier, said inspection company AmSpec Agri Malaysia.

Cargo surveyor Societe Generale de Surveillance, meanwhile, reported a 13.7 percent drop for the same period.

Palm oil could retest resistance at 2,466 ringgit a tonne, a break above which could lead to a gain to the next resistance at 2,475 ringgit, said Reuters market analyst for commodities and energy technicals, Wang Tao.

In related oils, the Chicago July soybean oil contract edged up by 0.1 percent while September soybean oil on China's Dalian Commodity Exchange was down 0.7 percent.

The Dalian September palm oil contract slipped by 0.2 percent.

Palm oil is affected by movements in rival edible oils competing for a share in the global vegetable oils market.

 

Palm, soy and crude oil prices at 1103 GMT

Contract	Month	Last	Change	Low		High	Volume
MY PALM OIL	MAY8	2374	+4.00	2374		2374	7
MY PALM OIL	JUN8	2425	+18.00	2402		2435	4021
MY PALM OIL	JUL8	2437	+16.00	2407		2437	18969
CHINA PALM OLEIN	SEP8	5074	-12.00	5066		5104	258780
CHINA SOYOIL	SEP8	5766	-42.00	5748		5812	323488
CBOT SOY OIL	JUL8	31.29	+0.04	31.17		31.36	4572
INDIA PALM OIL	MAY8	659.40	+0.00	656.00		660	568
INDIA SOYOIL	MAY8	758.3	+0.20	754.95		759.5	4070
NYMEX CRUDE	JUN8	71.60	+0.64	70.79		71.69	160597
Palm oil prices in Malaysian ringgit per tonne
CBOT soy oil in U.S. cents per pound
Dalian soy oil and RBD palm olein in Chinese yuan per tonne
India soy oil in Indian rupee per 10 kg
Crude in U.S. dollars per barrel

 

($1 = 3.9540 ringgit)

($1 = 67.8900 Indian rupees)

($1 = 6.3555 Chinese yuan)

 

(Reporting by Emily Chow
Editing by Subhranshu Sahu and David Goodman)