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China will cut retail prices of gasoline and diesel to levels similar to those before the war
China will lower its domestic retail prices of gasoline and diesel starting Saturday. This is due to a drop in oil prices internationally, as the?Iran-U.S. Peace talks have eased concerns about a disruption of supply through?the Strait of Hormuz. This reduction follows two cuts made in a single month to the official price cap, which determines the maximum retail price. This is the biggest drop in China's fuel prices since more than six-years. Retail?fuel costs are now less than 2% higher than they were before U.S. and Israeli airstrikes started the?Iran War at the end February. In a notice, the National Development and Reform Commission announced that gasoline and diesel prices would be reduced by 950 yuan ($140.10) and 900 yuan (?915 per metric ton) respectively. The new prices will be 8,175 and 7,170 per metric ton. Brent and WTI international benchmark oil futures contracts also reached their lowest levels since before the U.S./Israeli war against Iran. The NDRC adjusts the retail prices of gasoline and diesel every 10 days. The NDRC's rate is based on changes in crude oil prices, and includes average processing costs, taxes, distributor expenses, and appropriate profit margins. The war has led to high oil prices, which have affected demand in China. China's oil exports dropped 29% in May compared to last year, the lowest in eight years. Fuel demand - including gasoline - was estimated to have dropped by 20%. This is similar to a slump that occurred at the height of the COVID pandemic. Sinopec, one of China's biggest state oil companies, expects the national demand for gasoline and diesel to drop by 10% in the second and third quarters. Meanwhile, commodity market intelligence provider, S&P Global, expects a similar decline in second quarter.
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Gold gains for the week as US job data weakens rate-hike betting
Gold rose on Friday, and was expected to gain a weekly profit after four weeks of losses. This is because weaker U.S. job data has reduced expectations that the Federal Reserve will increase rates in the near future. Gold spot was up 1.5% to $4,184.75 an ounce at 0835 GMT after reaching its highest level since June 23. Bullion was above the 21-day moving average, and up 2.4% this week. U.S. Gold Futures for August Delivery gained 1.73%, to $4197.20. Han Tan, chief analyst at Bybit, explained that the gold price rise is due to the sharp slowdown in U.S. employment last month. The immediate reaction seems justified for now as markets reduce bets on a rate hike by the?Fed in September. Data released on Thursday showed that U.S. nonfarm payrolls increased by 57,000 in the last month. This was below the 110,000 economists had predicted. According to CME FedWatch, traders now expect a rate hike in September of about 54%, down from 66% prior to the release of the data. Low interest rates can reduce the cost of holding non-yielding investments like gold. Holders of other currencies can now afford to buy greenback-priced gold. World Gold Council data released on Thursday shows that central banks added a total of?41 metric tonnes to their gold reserves in May. Tan said that central banks will continue to be a pillar of demand for spot prices in the long term, despite recent sales by some to protect their currencies. Gold demand in India slowed this week as prices recovered, and buying interest in China increased slightly. Silver spot rose by 2.8%, to $62.7 an ounce. Platinum gained 2.9%, to $1662.66, while palladium gained 1.2%, to $1280.75. All three metals are on track to make weekly gains. (Reporting by Sumit Saha in Bengaluru; Editing by Subhranshu Sahu)
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The weaker dollar and softer US rate hike bets have led to a rise in aluminium prices
The price of aluminium rose on Friday due to a weaker dollar, which eased concerns about an impending 'U.S. Interest rates are expected to rise following the release of softer than expected U.S. employment data. By 0700 GMT, the benchmark three-month 'aluminum on the London Metal Exchange was up by 1.05% at $3,124 per metric ton. The contract has fallen 2.3% for the week. The Shanghai Futures Exchange's most traded aluminium contract rose 1.56%, to 22,840 Yuan ($3,369.23). This is a decline of 0.7% since the beginning of the week. Market participants were closely monitoring macroeconomic conditions. Some analysts questioned announcements made this week that suggested improved aluminum?supply prospects. Citi stated in a note that the concerns about a rapid return to Middle?East supplies appeared overstated and supply will not arrive fast enough to offset growth in demand. The data indicating a "cooler" U.S. labor market has calmed the expectations for a Federal Reserve interest rate increase in the near future, giving support to industrial metals. Rate increases can reduce economic activity and metal demand. The chances of a rate increase in July have dropped to around one-third. However, an increase is expected later this year. Daniel Hynes said that the easing of concerns about monetary tightening boosted the risk appetite, and pushed metals higher. A cheaper dollar makes greenback-denominated commodities more affordable for buyers ?using other currencies. Copper prices also rose, despite recent weakness of semiconductor shares. This was after PMI data this week revealed that factory activity in China, the world's largest metal consumer, expanded for a 7th consecutive month in June. The premium?Yangshan Copper Copper rose 0.59% on the LME, while it increased 0.67% on the SHFE. Copper rose 0.59 % on the LME while it increased?0.67 %. Nickel rose by?1.51%, tin rose by 2.38%, and zinc rose?0.62%. On the SHFE, tin rose 1.5%, while nickel and lead both gained 0.74 %.
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Gold prices rise for the first time in five weeks on Fed rate hike bets
As investors lowered expectations of rate increases in the U.S. following weaker-than-expected job data, gold rose by more than 1% on Friday. As of 0744 GMT spot gold was up by 1.4% to $4,179.42 an ounce after hitting its highest price since June 23. U.S. Gold futures for delivery in August gained?1.6%, to $4191.90. Bullion is on track to gain 2.2% in a week, its first weekly gain since May 29. Weaker-than-expected data from nonfarm payrolls as well as private payrolls helped ease concerns about inflation and rising interest rates. Dollars were headed for a weekly decline, making the price of greenback bullion more accessible to holders of other currencies. Kelvin Wong is a senior analyst at OANDA. He said, "What we are seeing?is that the Federal Reserve has reduced its interest rate hike forecasts for the rest of this year and Q1 of next year. This was primarily due to yesterday's rather lacklustre data on labour markets." The nonfarm payrolls rose by 57,000 last month. This was much lower than the economists' polled expectation of 110,000 jobs. According to CME FedWatch, traders now price in a roughly 54% chance that rates will be raised in September. This is down from 66% prior to the release of the data. Gold that doesn't yield is usually affected by higher interest rates, which make other assets with interest more attractive. Wong said that the expectation of rate hikes has not disappeared completely. He added that gold prices could fall to $3,500 an ounce later this year. The World Gold Council reported that central banks had returned to?buying mode? in May. According to the latest data, official reserves of gold increased by a total of?41 tonnes during the month. Spot silver rose 2.9%, to $62.80 an ounce. Platinum gained?2.8%, to $1.661.61 and palladium increased 1.1%, to $1.281.42. The three metals are nearing their highest levels for more than a month and heading towards weekly gains. (Reporting from Bengaluru by Pablo Sinha; Editing by Rashmi aich and Subhranshu Sahu).
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Two dead in Russian border region after Ukrainian drone attack
Local authorities and media reported on Friday that Ukrainian drones had caused damage to several industrial sites in Russia's border areas and killed at least two people. Ukraine has been pounding?Russia's infrastructure of energy for months to try and cripple Moscow's military power. The attacks have caused fuel shortages in Russia, the largest country on earth. Vladimir Putin, the Russian president, said that the attacks were meant to create discord in the population. Separately?Ukrainian authorities said on Telegram four people had been killed and a further ten?people injured by Russian attacks overnight on Ukraine. Valentin Demidov is the mayor of Belgorod in western Russia. He said that a woman died after being hit by shrapnel while driving. Water and electricity supplies were disrupted in the city, located about 40 km north of the Ukrainian border. Vesti, the?news channel citing local officials said earlier on Friday that an industrial facility had caught fire after Ukraine attacked Belgorod, and its surrounding areas, with missiles. Egor Kovalchuk is the acting governor for?Bryansk in another Russian border region. He said that a man died after a kamikaze attack on a village. Vasily Anokhin wrote on Telegram that a fire also broke out in an 'industrial site' of the western Smolensk area following a drone attack, but no one was injured. (Reporting from Tokyo by Jekaterina Glubkova; Editing by Muralikumar Aantharaman, Gareth Jones).
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Gold prices rise for the first time in five weeks on Fed rate hike bets
Gold gained 1% on Friday, and investors were set to?make their?first weekly gains in five as they dialed back expectations for U.S. interest rate hikes after softer than expected jobs data. As of 0612 GMT spot gold was up by 1% to $4,165.29 an ounce. It had earlier reached its highest level since the 23rd of June. U.S. Gold Futures for August Delivery gained 1.3% to $4,178.50. Bullion is on track to gain 1.8% in a week, its first weekly gain since?May 29. Weaker-than-expected data from nonfarm payrolls as well as private payrolls have tempered inflation concerns and interest rates that are higher for longer. Dollars were headed for a weekly decline, making the price of greenback bullion more accessible to holders of other currencies. Kelvin Wong is a senior analyst at OANDA. He said, "What we are seeing is a reduction in pricing of Federal Reserve rate hikes for the rest of this year and Q1 of next year. This has been driven primarily by yesterday's rather lacklustre data on the labour market." The nonfarm payrolls rose by 57,000 last month. This was a far cry from the 110,000 economists expected in a recent poll. According to CME FedWatch, traders now price in an?approximately 54% chance that rates will be raised in September. This is down from 66% prior to the release of the data. Gold is less attractive when interest rates are higher, because they tend to make other assets with interest more appealing. Wong said that rate-hike expectations haven't?fully vanished. He added that gold prices could fall to $3,500 per ounce later this year. The World Gold Council reported that central banks had returned to a 'buying mode' in May. According to the latest data, official reserves of gold increased by a total of?41 tonnes during the month. Spot silver increased?2.1% per ounce to $62.28. Platinum gained?2.4% at $1,655.15, while palladium rose 0.9% to 1,278.89. The three metals are nearing their highest levels for more than a month and heading towards weekly gains. (Reporting from Bengaluru by Pablo Sinha; Editing by Rashmi aich and Subhranshu Sahu).
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Asian markets gain footing after US PMIs and jobs data lift stocks
Stocks rose in the Asian session on Friday, after a lukewarm U.S. jobs report cast doubts over the prospects of a Federal Reserve rate hike. Regional activity gauges also pointed to an expansionary economy during June. MSCI's broadest Asia-Pacific share index outside Japan, which had been in decline for two days straight, rose 2.2% after a shaky beginning. South Korea's Kospi fluctuated between gains and losses before surging by more than 6%, as buyers snapped up battered chipset stocks. S&P 500 futures rose by 0.4% while Japan's Nikkei reversed its early losses and traded 1.2% higher. The latest data from the Purchasing Managers' Index (PMI), released on Friday, indicated an increase in activity throughout the region. Japan's service sector expanded in June, after stagnating the month before. China's service activity grew at a slower pace, but overseas demand grew at the highest rate in twenty months. Capital Economics analysts said that the Chinese data showed "the PMIs are still healthy compared to recent standards?and still indicate stronger economic momentum throughout Q2". U.S. LABOUR MARKET COOLING According to data released Thursday, U.S. employment growth slowed dramatically in June, and?payroll increases for the two previous months were revised downward, pointing to an easing labour market. As workers left the workforce, the unemployment rate fell to 4.2% last month from 4.3% the previous month. This pushed the participation rate down to its lowest level in over five years. In a report, Westpac analysts said that "the figures challenged the narrative" that the Fed is on track to raise rates in the second half this year. The lackluster jobs data dampened traders' expectations for an imminent rate increase and increased the odds that Fed rates will remain on hold until October. Fed funds futures price a 46.8% implied probability that the U.S. Central Bank will maintain rates at its September 15-16 meeting, compared to 35.8% a day before. This is according to CME Group’s FedWatch tool. Stocks on Wall Street were mixed overnight. The S&P 500 was unchanged and the Nasdaq Composite fell 0.8%. However, the Dow Jones Industrial Average closed at a record high. The U.S. Market will be closed Friday, July 4, in honor of Independence Day. The U.S. Dollar was unchanged at 161.06 yens, with the greenback losing gains due to the thinned market liquidity caused by the holiday. Traders were on the lookout for any possible intervention. This week, the Japanese currency has been volatile after reports on Thursday that authorities might have adopted a different approach to their forays in the market. The U.S. Dollar?index which measures the strength of the greenback against a basket of six currencies was down by 0.3% to 100.71. Early European trading saw pan-regional futures up 0.3%. German DAX was 0.4% higher, and FTSE futures nudge up by 0.1%. Brent crude futures in Asia rose 0.6%, to $72.26 per barrel. Gold rose 1.2% to $4,174.16. Bitcoin was unchanged at $61,549.17 while ether rose 0.1% to $1706.26. (Reporting and editing by Jamie Freed, Thomas Derpinghaus and Gregor Stuart Hunter)
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Overnight, Russian attacks in Ukraine kill four and injure ten people, say officials
Officials reported on Telegram that four people were killed and ten others injured during Russian overnight attacks on Ukraine. According to?Oleh Hryhorov of the regional military administration, a Russian drone struck a house in the bordering Sumy area, killing two women, an 'elderly man' and a young girl. Oleksandr?Vilkul, head of the city defence council, reported that seven people had been injured in the densely populated urban area of Kryvyi RIH, the hometown of Ukrainian President Volodymyr Zelenskiy. On Friday, Kyiv will observe a day of mourning after at least three dozen people were killed in the deadliest Russian attack against?the Ukrainian capital this year. Reporting by Jekaterina Glubkova, Tokyo; Editing and production by Stephen Coates & Thomas Derpinghaus
Heatwave causes at least 3,700 deaths in France, Belgium, and Netherlands
The heatwave in June that sent temperatures soaring across Europe has'recorded 3700 deaths over the normal number. Authorities have warned that the figures are preliminary, and may rise.
Experts say that the heatwave which lasted between June 20 and 28 was the worst ever recorded in Europe. It caused disruptions to the power generation system, damaged infrastructure, and overwhelmed the healthcare systems. Scientists said that climate change was most likely to blame for the extreme heat.
Stephanie Rist, French Health Minister, told local TV on Friday that there were 2,025 excess death in France due to the heatwave. The increase was primarily among those aged 45 and older.
The number of deaths at home increased by 91% between June 22-28, compared with the previous week. Deaths in nursing homes and health care facilities also rose, according to a bulletin from the public health authority.
The authority warned that "Mortality... will be higher than the initial figures suggest."
MORTALITY DATA - 'UNPRECEDENTED"
The Belgian Health Ministry announced on Thursday that it had recorded excess mortality between June 18-29 of about 1,200 deaths. Adding, 530 of those deaths occurred amongst people 85 years and older. 180 deaths were caused by people under the age of 65.
In a press release, the ministry stated that "such excess mortality during a summer heatwave was unprecedented in our country."
The authorities in the Netherlands reported that the heatwave caused 480 deaths more than expected, mostly among people over the age of 80. (Reporting and editing by Makini Popper and Helen Popper; Inti Landauro and Sudip Kar Gupta)
(source: Reuters)