Market Update
Four Day Rally In U.S. Stocks
Barry Adams
07 Jul, 2022
New York City
U.S. benchmark indexes advanced for the fourth day in a row and tech and oil stocks led the gainers.
The S&P 500 index increased 1.2% to 3,890.29 and the Nasdaq Composite index added 1.8% to 11,599.67.
Futures of crude oil jumped 5.8% to $104.25 and natural gas increased 12.9% to $6.23 a unit. Energy prices rebounded after a 4-day decline.
Chipmakers advanced after South Korea based Samsung reported its strongest June quarter in four years.
Intel increased 2.7% to $37.99, Advanced Micro Devices added 4.5% to $78.74, and Qualcomm, Inc jumped 4.5% to $132.86.
The yield on 10-year Treasury notes increased to 3.008% after the latest Fed minutes of meeting indicated policymakers' commitment in fighting inflation.
Policymakers proposed a restrictive stance and a faster interest rate hike at the next Fed's meeting on July 26.
The tough talk from policymakers may not smooth markets for too long as the central bank ignored inflation above its target rate of 2% for more than 18 months.
Initial claims of jobless benefits rose 4,000 to 235,000 for the week ended July 2, the Department of Labor reported today.
The initial claims increased to the level last seen in the second week in January and the 4-week average increased to 232,500, its highest level since December 2021.
Goods and services trade deficit edged lower to $85.5 billion from $86.7 billion in April, the Commerce Department reported today.
Though the deficit declined on a monthly basis but surged 38.4% from a year ago after imports rebounded faster than exports.
On a monthly basis, the seasonally adjusted trade deficit with China declined in May by $2.8 billion to $32.2 billion.
After the close, Levi Strauss and WD 40 Company are set to report earnings.
UK Prime Minister Resigned After Conservative Party Rebellion
Bridgette Randall
07 Jul, 2022
New York City
British Prime Minister Boris Johnson resigned after more ministers quit his cabinet.
Only after three years in office, Johnson was forced to resign as more ministers quit following several policy missteps and a series of scandals.
The calls for Johnson's resignation grew louder after Chancellor of Exchequer Rishi Sunak and Health Secretary Sajid Javid tendered their resignation on Tuesday.
Finance minister Rishi Sunak resigned after the latest scandal rocked Downing Street involving Tory deputy chief Chris Pincher.
Last week Pincher resigned from the government over allegations that he groped two men at a private member's club.
"The public rightly expect the government to be conducted properly, competently and seriously.
I recognise this may be my last ministerial job, but I believe these standards are worth fighting for and that is why I am resigning.," said Sunak in a letter published on his twitter account.
"It has been an enormous privilege to serve in this role, but I regret that I can no longer continue in good conscience," Health Secretary of State & Social Care Sajid Javid tendered his resignation and said in a letter submitted to prime minister Johnson and published on twitter.
More junior ministers resigned yesterday and several party members urged Johnson to resign.
The drama reached a new high after the newly appointed finance minister Nadhim Zahawi urged Johnson to resign.
In 2016, Boris Johnson played a key role during the Brexit campaign that many say misled the British public and raised false hopes of better economic prospects outside the European Union and the scare of rising immigration from the Middle East.
The U.K.-EU relationship hit a new low after Johnson sought to rewrite the terms of Brexit and renege on the promises related to trade with Northern Ireland.
Johnson's administration placed some of the stringent sanctions on Russia and Russians after the country invaded Ukraine.
The Kremlin did not miss the opportunity and shot back after Johnson's sudden fall from power and his unceremonious departure.
"He doesn't like us, we don't like him either," Kremlin spokesman Dmitry Peskov said just before Johnson announced his resignation.
Boris Johnson, often invoking former prime minister and Conservative Party leader Churchill, offered vocal support to Ukraine and exhorted Ukrainians to fight the Russian aggression but rarely promoted a peaceful settlement.
The U.K. has provided less than 5% of military and arms support to Ukraine in its fight against Russia.
Just as Churchill led the U.K. into a disastrous war with Germany engulfing the whole world, Johnson advocated war with Russia on ideological grounds.
Boris Johnson has opposed any peaceful solution between Russia and Ukraine.
"Let me say now to the people of Ukraine, we in the UK will continue to back your fight for freedom for as long as it takes," Johnson said while delivering his speech.
Russian tycoon and billionaire Oleg Deripaska, who is close to the Kremlin, has opposed the war from the start and urged a peaceful solution with Ukraine.
Deripaska spoke for many Russians and people around the world when he posted his short statement on his Telegram channel.
"The inglorious end of the "inglorious stupid clown" who is responsible for tens of thousands of lives in this senseless conflict in Ukraine," Russian billionaire tycoon Oleg Deripaska.
Boris Johnson rose to power after his vocal support for Brexit in 2016, leaving the European Union, and led Conservative Party to a historic win of 80-seat majority in the 2019 elections.
However, his administration failed to capitalize on the British public's desire of speedy and total separation from the European Union.
Even after three years in office, Johnson has not completed Brexit negotiations with the European Union casting a pall over the economy and the pound.
With no clear front runner for the highest office in the U.K., the divided Conservative Party may take several weeks before a new leader is selected.
The British pound jumped 0.4% against the U.S. dollar to $1.197 and the 10-year U.K. government bond rose to 2.136%.
European Movers: ASM Holding, Lufthansa, Nordex, Persimmon, Telecom Italia
Bridgette Randall
07 Jul, 2022
New York City
European stock markets scaled higher and the euro struggled after the release of U.S. Federal Reserve policy meeting deliberations.
The DAX index gained 1.8% to 12,832.46, the CAC-40 index added 1.7% to 6,009.68, and the FTSE 100 index advanced 1.3% to 7,199.05.
Benchmark indexes in Frankfurt, Paris, and London opened higher after the Federal Reserve policymakers suggested restrictive policy stance and faster interest rate hikes at the next meeting.
The policy committee members proposed to lift rates by 50 o r75 basis points at the next meeting on July 26.
The strong commitment to tame inflation supported the market sentiment overcoming the worries that the Fed's aggressive action may lead to a recession.
Automakers and banks led the gainers.
HSBC Holdings, Commerzbank, BNP Paribas and Natwest Group increased between 2% and 3%.
Volkswagen, BMW, Renault, and Daimler Benz advanced between 3% and 5%.
Resource stocks gained after iron ore prices rose for China delivery.
Glencore, Antofagasta, and Anglo American surged between 6% and 7%.
ASM Holding rose 4.2% to 446.52 euros after South Korea based Samsung Electronics reported its strongest June quarter since 2018.
Nordex SE gained 7.5% to 8.45 euros after the German wind turbine maker said new orders drove total orders to 1.8 GW compared to 1.534 GW a year ago.
The company received a total of 346 wind turbines for projects in fifteen countries and Europe accounted for approximately 58%, Latin America 31% and North America 11%.
The strongest individual markets in Europe were Germany, Poland and Spain.
Lufthansa AG increased 4.7% to 5.77 euros after logistics entrepreneur Klaus-Michael Kuehne increased his stake in the state controlled carrier to 15% from 10%.
Telecom Italia SpA added 1% to 26 euro cents after the company laid out a detailed plan to separate its fixed network infrastructure from services.
Shell Plc added 3.9% to 23.97 euros after the oil refiner and explorer said rising refining margin is expected to add one billion dollars earnings to its refining business.
Persimmon Plc declined 6.1% 1,751.30 pence after the U.K.-based home builder said first-half revenues are estimated to decline to
European Markets Rally On Fed's Hawkish Inflation Tone
Bridgette Randall
07 Jul, 2022
London
European stock markets scaled higher and the euro struggled after the release of U.S. Federal Reserve policy meeting deliberations.
The DAX index gained 1.8% to 12,832.46, the CAC-40 index added 1.7% to 6,009.68, and the FTSE 100 index advanced 1.3% to 7,199.05.
Benchmark indexes in Frankfurt, Paris, and London opened higher after the Federal Reserve policymakers suggested restrictive policy stance and faster interest rate hikes at the next meeting.
The policy committee members proposed to lift rates by 50 o r75 basis points at the next meeting on July 26.
The strong commitment to tame inflation supported the market sentiment overcoming the worries that the Fed's aggressive action may lead to a recession.
British Prime Minister Boris Johnson resigned after more ministers quit his cabinet.
Johnson was forced to resign only after three years in office as more ministers resigned following several policy missteps and a series of scandals.
The U.K.-EU relationship hit a new low after Johnson sought to rewrite the terms of Brexit and renege on the promises related to trade with Northern Ireland.
The British pound jumped 0.4% against the U.S. dollar to $1.197 and the 10-year U.K. government bond rose to 2.136%.
Germany's industrial production in May rose 0.2% after rising 1.3% in April, deStatis reported on Thursday.
On an annual basis, the production declined 1.5% from a year ago after falling 2.5% in April.
Automakers and banks led the gainers.
HSBC Holdings, Commerzbank, BNP Paribas and Natwest Group increased between 2% and 3%.
Volkswagen, BMW, Renault, and Daimler Benz advanced between 3% and 5%.
Resource stocks gained after iron ore prices rose for China delivery.
Glencore, Antofagasta, and Anglo American surged between 6% and 7%.
ASM Holding rose 4.2% to 446.52 euros after South Korea based Samsung Electronics reported its strongest June quarter since 2018.
Nordex SE gained 7.5% to 8.45 euros after the German wind turbine maker said new orders drove total orders to 1.8 GW compared to 1.534 GW a year ago.
The company received a total of 346 wind turbines for projects in fifteen countries and Europe accounted for approximately 58%, Latin America 31% and North America 11%.
The strongest individual markets in Europe were Germany, Poland and Spain.
Lufthansa AG increased 4.7% to 5.77 euros after logistics entrepreneur Klaus-Michael Kuehne increased his stake in the state controlled carrier to 15% from 10%.
Oasis Petroleum and Whiting Petroleum Complete $6 Billion Merger
Scott Peters
06 Jul, 2022
New York City
Chord Energy Corporation dropped 5.6% to $96.58 after the newly named company completed the merger between Whiting Petroleum and Oasis Petroleum.
The newly merged company under the new symbol CHRD began trading on July 5.
The merged company also lifted its second quarter energy production to increase 18% from 9% using the three stream production assumption.
Whiting and Oasis announced a $6 billion merger on March 7.
The combined company is expected to produce equivalent of at least 156 4 million of barrels a day and spend about !65 million in capital expenditure in the fiscal year 2022.
Danny Brown, previous chief executive officer of Oasis is appointed president & chief executive officer of Chord Energy.
Amazon Includes Grubhub to Prime Membership With Warrant Deal
Scott Peters
06 Jul, 2022
New York City
Amazon.com, Inc declined 0.7% to $112.84 after the company added one year free delivery from Grubhub.com for its prime members.
Just Eat Takeaway.com, the parent of Grubhub, offered warrants totaling up to a 15% stake in the U.S. based Grubhub when fully exercised by Amazon.
The vesting of warrants is subject to the satisfaction of certain performance conditions, principally the number of new consumers delivered through the commercial agreement.
In certain circumstances the warrants can vest on an accelerated basis, in full or in part and may be be settled in cash or company shares, the press release noted.
Separately, the U.K. antitrust regulator is investigating the retailer if the company is offering an unfair advantage to its own sellers over third-party sellers.
The U.K. based Just Eat is actively looking to sell its U.S. food delivery unit Grubhub after the post-pandemic weakening of sales growth at the company.
France Plans to Nationalize EDF
Bridgette Randall
06 Jul, 2022
New York City
EDF SA soared 14.5% to 8.98 euros after French government announced its intention to nationalize the struggling utility company.
French government said it plans to nationalize the financially strapped Electricite de France SA as the utility company racks up billions of euros in losses.
France already controls 84% of the utility company and losses mounted after President Emmanuel Macron put price cap on utility prices and natural gas prices soared after the Russia's invasion of Ukraine.
President Macron had proposed to nationalize the utility company and accelerate the shift to renewable and nuclear energy and make France energy independent.
More than two thirds of electricity in France is provided by atomic power plants controlled by EDF.
Fed Policy Committee Favors Restrictive Stance and Larger Future Rate Hikes
Brian Turner
06 Jul, 2022
New York City
Fears of accelerating inflation and elevated prices across a broad category of products and services drove policymakers to a large rate hike at its last meeting in June.
The latest Fed's minutes of meeting held on June 14-15 and released today showed that policy members "agreed that inflation remained elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures."
The committee also held out for larger and faster rate increases if the economic conditions warrant and inflation remained elevated.
Fed policy members also held out for a rate hike of 50 or 75 basis points at its next two-day meeting on July 26 and the committee members also favored a restrictive stance of policy.
The yield on 10-year Treasury notes increased to 2.93% after the release of the Fed minutes, reflecting a more aggressive central bank.
U.S. Stocks Close Higher After Fed Minutes
Barry Adams
06 Jul, 2022
New York City
Late rally in U.S. stocks lifted major indexes higher after the release of Fed's latest minutes of meeting.
The S&P 500 index increased 0.4% to 3,845.08 and the Nasdaq Composite Index rose 0.4% to 11,361.81.
Futures of crude oil declined 1.0% to $98.56 a barrel and natural gas closed nearly unchanged at $5.54 a unit.
Fears of accelerating inflation and elevated prices across a broad category of products and services drove policymakers to a large rate hike at its last meeting in June.
The latest Fed's minutes of meeting held on June 14-15 and released today showed that policy members "agreed that inflation remained elevated, reflecting supply and demand imbalances related to the pandemic, higher energy prices, and broader price pressures."
The committee also held out for larger and faster rate increases if the economic conditions warrant and inflation remained elevated.
Fed policy members also held out for a rate hike of 50 or 75 basis points at its next two-day meeting on July 26 and the committee members also favored a restrictive stance of policy.
The yield on 10-year Treasury notes increased to 2.93% after the release of the Fed minutes, reflecting a more aggressive central bank.
Mortgage rates dropped for the second week in a row.
Mortgage rates for 30-year fixed-rate mortgage loans declined to 5.74% from 5.84% in the previous week, according to data from the Mortgage Bankers Association.
The origination and other fees rose to 0.65 percentage points from 0.64 for the loans with 20% down payment in the previous week, the press release noted.
The labor market conditions remained tight at the end of spring according to the latest employment situation report from the U.S. Department of Labor.
The number of job openings decreased 6.9% to 11.3 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today.
Total hires in May were nearly unchanged at 6.5 million and separations were also unchanged at 6.0 million in May.
Hires totaled 78.4 million and separations totaled 72.0 million, yielding a net employment gain of 6.4 million, over 12 months to May.
These totals include workers who may have been hired and separated more than once during the year.
Defensive stocks including utilities and healthcare sectors led the gainers.
UnitedHealth Group and Cigna gained more than 2%, Constellation Energy increased 3%, Exelon increased 1.5%.
Energy companies declined for the third day after oil fell and natural gas closed nearly unchanged.
Amazon.com, Inc declined 0.7% to $112.84 after the company added one year free delivery from Grubhub.com for its prime members.
Separately, the U.K. antitrust regulator is investigating the retailer if the company is offering an unfair advantage to its own sellers over third-party sellers.
Microsoft increased 0.2% to $263.32 and the company's $68 billion acquisition of Activision Blizzard is facing an antitrust investigation from the U.K. regulator.
European Markets Rebound
European markets rebounded after natural gas prices dropped after Norwegian workers called off strike for now.
The DAX index increased 1.3% to 12,565.63, the CAC-40 index advanced 1.6% to 5,886.09, and the FTSE 100 index added 1.6% to 7,137.84.
Oil and gas workers at Equinor called off strike after Norway intervened and proposed a mandatory arbitration.
However, the union has not called off the proposed strike at other fields scheduled from July 9.
The Gudrun, Oseberg South and Oseberg East fields have started run-up of production and are expected to reach full production of 89,000 equivalent barrels of oil in two days.
Natural gas prices eased to 169.05 euros per megawatt after rising as much as 177 euros in the previous session.
Eurozone Retail Sales Rebound Slows
Eurozone retail sales rose at a slower than anticipated pace in May, the eurostat data showed on Wednesday.
On a monthly basis, retail sales increased 0.2% in May from the revised 1.4% in April.
Food, drinks and tobacco sales contracted 0.3% in May compared to a 2.3% fall in April.
On a yearly basis, retail sales growth eased to 0.2% in May from 4.0% in April.
Foreign Orders Drive German Orders' Rise
Germany's factory orders increased 0.1% in May after falling 1.8% in April, the destatis data showed on Wednesday.
On a yearly basis, new orders declined 3.1% in May, slower than 5.3% fall in April,
On a monthly basis, domestic orders declined 1.3% but foreign orders rose 1.6% after non-euro area orders increased 3.7%.
Construction Activities in UK and Germany Drop
Construction activities in Germany declined for the third month in a row in June, the latest survey from S&P Global showed on Wednesday.
Rising building costs and higher interest rates dragged the activities in the sector.
The construction Purchasing Managers' Index increased from a nine-month low of 45.4 in May to 45.9 in June.
Any reading below 50 indicates contraction.
UK construction activities dropped to a nine-month low in June on rising materials cost and higher interest rates, the survey from S&P Global reported on Wednesday.
The S&P Global/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell to 52.6 in June from 56.4 in May.
Home building was the weakest among all construction activities for the fourth month in a row and contracted for the first time since May 2020.
France Plans to Nationalize EDF
EDF SA soared 14.5% to 8.98 euros after French government announced its intention to nationalize the struggling utility company.
French government said it plans to nationalize the financially strapped Electricite de France SA as the utility company racks up billions of euros in losses.
France already controls 84% of the utility company and losses mounted after President Emmanuel Macron put price cap on utility prices and natural gas prices soared after the Russia's invasion of Ukraine.
President Macron had proposed to nationalize the utility company and accelerate the shift to renewable and nuclear energy and make France energy independent.
More than two thirds of electricity in France is provided by atomic power plants controlled by EDF.
Movers: Amazon, Chord Energy, Microsoft, Norwegian Cruise, Paramount Resources, Rivian, RingCentral
Barry Adams
06 Jul, 2022
New York City
U.S. indexes traded near flat line and energy prices continued to slide reacting to the rising expectations of economic slowdown.
The S&P 500 index increased 0.05% to 3,833.92 and the Nasdaq Composite Index rose 0.2% to 11,347.91.
Futures of crude oil declined 3.5% to $96.01 a barrel and natural gas eased 5.8 cents to $5.48 a unit.
Amazon.com, Inc declined 0.7% to $112.84 after the company added one year free delivery from Grubhub.com for its prime members.
Just Eat Takeaway.com, the parent of Grubhub, offered warrants totaling up to a 15% stake in the U.S. based Grubhub when fully exercised by Amazon.
Separately, the U.K. antitrust regulator is investigating the retailer if the company is offering an unfair advantage to its own sellers over third-party sellers.
Chord Energy Corporation dropped 5.6% to $96.58 after the newly named company completed the merger between Whiting Petroleum and Oasis Petroleum.
The newly merged company under the new symbol CHRD began trading on July 5.
The merged company also lifted its second quarter energy production to increase 18% from 9% using the three stream production assumption.
Whiting and Oasis announced a $6 billion merger on March 7.
Microsoft increased 0.2% to $263.32 and the company's $68 billion acquisition of Activision Blizzard is facing an antitrust investigation from the U.K. regulator.
Norwegian Cruise Line dropped 9.5% to $11.28 on the worries that the cruise industry may face more headwinds if the U.S. heads into a recession or an economic slowdown.
Carnival Corp declined 6.8% to $8.80 and Royal Caribbean dropped 6.6% to $33.99.
Paramount Resources dropped 8.04% to $26.09 and Raymond James lifted its price target for the Canadian energy company to C$45.
Rivian Automotive Inc surged 10.5% to $29.68 after the electric vehicle maker reiterated its production plan.
The electric truck maker said it produced 4,401 vehicles in the second quarter ending in June and the company is on track to produce 25,000 vehicles in the current year.
RingCentral Inc declined 10.01% to $55.09 after Needham analyst Ryan Koontz downgraded the cloud services provider to "hold" from "buy" and removed his price target of $110 citing stronger competition from Microsoft Teams.
Jobs Market Remain Tight, New Job Postings Decline 6.9% In May
Brian Turner
06 Jul, 2022
New York City
The number of job openings decreased 6.9% to 11.3 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today.
Total hires in May were nearly unchanged at 6.5 million and separations were also unchanged at 6.0 million in May.
Hires totaled 78.4 million and separations totaled 72.0 million, yielding a net employment gain of 6.4 million, over 12 months to May.
These totals include workers who may have been hired and separated more than once during the year.
U.S. Indexes Fall In Volatile Trading Tracking Lower Oil
Bridgette Randall
06 Jul, 2022
New York City
U.S. stocks edged lower and energy prices continued to slide reacting to the rising expectations of economic slowdown.
The S&P 500 index decreased 0.5% to 3,809.92 and the Nasdaq Composite Index fell 0.6% to 11,256.71.
Futures of crude oil declined 3.5% to $96.01 a barrel and natural gas eased 5.8 cents to $5.48 a unit.
The labor market conditions remained tight at the end of spring according to the latest employment situation report from the U.S. Department of Labor.
The yield on 10-year Treasury notes increased to 2.88% and mortgage rates dropped for the second week in a row.
Mortgage rates for 30-year fixed-rate mortgage loans declined to 5.74% from 5.84% in the previous week, according to data from the Mortgage Bankers Association.
The origination and other fees rose to 0.65 percentage points from 0.64 for the loans with 20% down payment in the previous week, the press release noted.
The number of job openings decreased 6.9% to 11.3 million on the last business day of May, the U.S. Bureau of Labor Statistics reported today.
Total hires in May were nearly unchanged at 6.5 million and separations were also unchanged at 6.0 million in May.
Hires totaled 78.4 million and separations totaled 72.0 million, yielding a net employment gain of 6.4 million, over 12 months to May.
These totals include workers who may have been hired and separated more than once during the year.
Investors are looking ahead to the release of the Fed's latest minutes of meeting at 2:00 p.m. this afternoon.
Amazon.com, Inc declined 0.7% to $112.84 after the company added one year free delivery from Grubhub.com for its prime members.
Separately, the U.K. antitrust regulator is investigating the retailer if the company is offering an unfair advantage to its own sellers over third-party sellers.
Microsoft increased 0.2% to $263.32 and the company's $68 billion acquisition of Activision Blizzard is facing an antitrust investigation from the U.K. regulator.
European Movers: Abrdn, EDF, Evotec, Just Eat, Trainline
Bridgette Randall
06 Jul, 2022
Frankfurt
European markets rebounded after natural gas prices dropped after Norwegian workers called off strike for now.
The DAX index increased 1.3% to 12,565.63, the CAC-40 index advanced 1.6% to 5,886.09, and the FTSE 100 index added 1.6% to 7,137.84.
Oil and gas workers at Equinor called off strike after Norway intervened and proposed a mandatory arbitration.
However, the union has not called off the proposed strike at other fields scheduled from July 9.
The Gudrun, Oseberg South and Oseberg East fields have started run-up of production and are expected to reach full production of 89,000 equivalent barrels of oil in two days.
Natural gas prices eased to 169.05 euros per megawatt after rising as much as 177 euros in the previous session.
Just Eat Takeaway.com increased 16.8% to 1,383.0 pence after Amazon offered a one-year free delivery from restaurants listed on its U.S. unit Grubhub for one year.
The deal is expected to be earnings neutral in 2022 but is expected to be positive for earnings and cash flow in 2023, the company's press release noted on Wednesday.
Trainline Plc increased 23.9% to 349.18 pence after the online booking site lifted its sales outlook on the European travel rebound driven by a surge in demand from the U.S.
The company said rail ticket sales are up 16% in the first four months to June in the fiscal 2023.
The ticket platform operator said full-year ticker sales are expected to increase between 18% and 27% and sales to increase between 22% and 31% from fiscal 2020.
Abrdn Plc gained 7.2% to 157.80 pence after the U.K. based investment management firm announced a share repurchase plan of 300 million pounds.
The asset management firm will complete the repurchase of 1
European Markets Rebound After Norway Energy Workers Return to Work for Now
Bridgette Randall
06 Jul, 2022
New York City
European markets rebounded after natural gas prices dropped after Norwegian workers called off strike for now.
The DAX index increased 1.3% to 12,565.63, the CAC-40 index advanced 1.6% to 5,886.09, and the FTSE 100 index added 1.6% to 7,137.84.
Oil and gas workers at Equinor called off strike after Norway intervened and proposed a mandatory arbitration.
However, the union has not called off the proposed strike at other fields scheduled from July 9.
The Gudrun, Oseberg South and Oseberg East fields have started run-up of production and are expected to reach full production of 89,000 equivalent barrels of oil in two days.
Natural gas prices eased to 169.05 euros per megawatt after rising as much as 177 euros in the previous session.
Eurozone retail sales rose at a slower than anticipated pace in May, the eurostat data showed on Wednesday.
On a monthly basis, retail sales increased 0.2% in May from the revised 1.4% in April.
Food, drinks and tobacco sales contracted 0.3% in May compared to a 2.3% fall in April.
On a yearly basis, retail sales growth eased to 0.2% in May from 4.0% in April.
Germany's factory orders increased 0.1% in May after falling 1.8% in April, the destatis data showed on Wednesday.
On a yearly basis, new orders declined 3.1% in May, slower than 5.3% fall in April,
On a monthly basis, domestic orders declined 1.3% but foreign orders rose 1.6% after non-euro area orders increased 3.7%.
Construction activities in Germany declined for the third month in a row in June, the latest survey from S&P Global showed on Wednesday.
Rising building costs and higher interest rates dragged the activities in the sector.
The construction Purchasing Managers' Index increased from a nine-month low of 45.4 in May to 45.9 in June.
Any reading below 50 indicates contraction.
UK construction activities dropped to a nine-month low in June on rising materials cost and higher interest rates, the survey from S&P Global reported on Wednesday.
The S&P Global/Chartered Institute of Procurement & Supply construction Purchasing Managers' Index fell to 52.6 in June from 56.4 in May.
Home building was the weakest among all construction activities for the fourth month in a row and contracted for the first time since May 2020.
Just Eat Takeaway.com increased 16.8% to 1,383.0 pence after Amazon offered a one-year free delivery from restaurants listed on its U.S. unit Grubhub for one year.
The deal is expected to be earnings neutral in 2022 but is expected to be positive for earnings and cash flow in 2023, the company's press release noted on Wednesday.
Trainline Plc increased 23.9% to 349.18 pence after the online booking site lifted its sales outlook on the European travel rebound driven by a surge in demand from the U.S.
The company said rail ticket sales are up 16% in the first four months to June in the fiscal 2023.
The ticket platform operator said full-year ticker sales are expected to increase between 18% and 27% and sales to increase between 22% and 31% from fiscal 2020.
Abrdn Plc gained 5.4% after the U.K. based investment management firm announced a share repurchase plan of 300 million pounds.
Evotec SE increased 2.6% to 24.51 euros after the company set up a joint venture with Boehringer Ingelheim and bioM
Tech Stocks Rally Lifts Nasdaq and Erases 2% Loss In S&P 500
Barry Adams
05 Jul, 2022
New York City
U.S. stocks staged a afternoon rally led by tech stocks after interest rates eased.
The S&P 500 index increased 0.16% to 3,831.39 and the Nasdaq Composite index gained 1.75% to 11,322.25.
After a three-day weekend, investors returned with recession anxieties and global economic slowdown worries and stocks opened lower and stayed in the negative territory in the first two hours of trading.
However, the weakness in the bond yields energized traders in tech stocks and the tech-heavy Nasdaq Composite gained momentum.
The yield on 10-year U.S. Treasury notes declined 10 basis points to 2.812%.
The steady advances in tech stocks supported a turnaround in the S&P 500 index but the rally failed to broaden.
Investors are awaiting the jobs report on Friday and the release of Fed's latest minutes of meeting on Wednesday.
President Biden's administration is negotiating with Chinese cabinet members in rolling back Trump era tariffs on imported goods from China and ease inflation burden on consumers.
The decision on tariff rollback is expected as early as this week.
Futures of crude oil plunged 8% to $99.51 a barrel and natural gas plunged 4.2% to $5.49 a unit.
The crude oil futures plunged below $100 a barrel for the first time since May 11 after spiking as high as $130.50 a barrel in March following Russia's Ukraine invasion and the international price of oil spiked to $140 a barrel.
Natural gas markets are bracing for another delivery shock starting as early next week.
Russia announced to completely halt all gas deliveries through Nordstream 1 beginning next Monday for 10 days for planned maintenance.
Moreover, Norwegian gas workers went on a strike over a pay dispute forcing the state controlled Equinor to shut down three oil fields in the North Sea.
Three gas fields produce the equivalent of 89,000 barrels of oil a day with about 30% of output in natural gas, Equinor said in a press release.
September Futures of natural gas prices soared as much as 5% or to 172 euros before settling at a lower level of 165 euros per megawatt hour, price feed from the Intercontinental Exchange showed.
Energy stocks led the decliners after crude oil prices plunged in the early trading.
Exxon Mobil Corp declined 4.5% to $83.71, Chevron dropped 4.2% to $140.35, and Occidental Petroleum fell 4.8% to $57.52.
Halliburton, Marathon Oil, Schlumberger, EOG Resources, and ConocoPhillips declined more than 7.0%.
Yum Brands declined 1.1% to $114.45 and the owner of fast food chains said the company is close to selling its operations in Russia.
The U.S. dollar advanced against world currencies on rising fears of global slowdown and higher rate expectations in the U.S.
Global recession worries were front and center in today's trading and the euro accelerated its decline in the year so far and plunged to a two decade low.
The euro declined 1.3% to $1.029 and extended this year's loss to 9% after skyrocketing energy prices has driven inflation in the currency zone to a four-decade high.
In the year so far, the euro has fallen 13.8% and the British pound has declined 13.6% against the U.S. dollar.
The U.S. dollar has been gaining ground against currencies around the world after the Federal Reserve lifted rates two times this year and set the expectations for more hikes during the year.
Europe's proximity to the Ukraine war, four-decade high inflation, and interest rates lagging the U.S. has driven the euro to a two-decade low.
The British pound fell 1.5% to $1.193 after two cabinet ministers resigned in protest of Prime Minister Boris Johnson's leadership.
U.K. Prime Minister Boris Johnson suffered a serious blow after two top senior ministers offered their resignations.
Finance Minister Rishi Sunak resigned after the latest scandal rocked Downing Street involving Tory deputy chief Chris Pincher.
Four days ago Pincher resigned from the government over allegations that he groped two men at a private member's club.
"The public rightly expect government to be conducted properly, competently and seriously.
I recognise this may be my last ministerial job, but I believe these standards are worth fighting for and that is why I am resigning.," said Sunak in a letter published on his twitter account.
"It has been an enormous privilege to serve in this role, but I regret that I can no longer continue in good conscience," Health Secretary of State & Social Care Sajid Javid tendered his resignation and said in a letter submitted to prime minister Johnson and published on twitter.
European Markets Drop 2%
Market indexes in Europe dropped more than 2% as fears of a recession escalated in the union on soaring inflation and no end in sight of a war in Ukraine.
The DAX index fell 2.4% to 12,464.54, the CAC-40 index declined 2.4% to 5,810.58, and the FTSE 100 index dropped 2.6% to 7,047.26.
Market worries were compounded after coronavirus infections flared up in easter region of China and local authorities imposed mass testing in at least three cities.
Scandinavian Airlines SAS AB dropped 10.5% to 55 krona cents after the company sought bankruptcy protection in a U.S. court to accelerate its restructuring plan.
Delivery Hero SE gained 1.5% to 35.69 euros after the delivery services provider said it has completed the acquisition GlovoApp23 S.A.
J Sainsbury Plc increased 1.1% to 210.68 pence after the retailer confirmed its full-year outlook.
The retailer said total sales excluding fuel sales declined 4.5% in the sixteen week period ending on June 25. Grocery sales were down 2.4% in the period.
The company confirmed fiscal year 2022-23 underlying profit before tax of between