Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Asian Stocks Extend Gains On Technology Shares
Asian stocks rose, today as technology shares gained, with the regional index heading for the biggest quarterly rally since September. The MSCI Asia Pacific Index rose 0.4 percent to 145.63 with eight of its ten industry groups advancing. The gauge is headed for a 5.5 percent increase this quarter and a 2.7 percent jump in June for a second month of gains. Data on Chinese manufacturing and the Bank of Japan’s survey on business sentiment are due tomorrow. Japan’s Topix index gained 0.8 percent as the nation’s industrial production expanded 0.5 percent in May from April, when it shrank 2.8 percent, according to a report. The median forecast of economists was for a 0.9 percent increase. The government projects production will decrease 0.7 percent in June and increase 1.5 percent in July.
Gold Close To 2-Month High
Gold held close to a two-month high today on a softer dollar and looks set to post its second straight quarterly gain as geopolitical tensions boosted the metal’s safe-haven appeal. Market watchers were observing U.S. jobs data and the European Central Bank meeting later this week for the outlook on stimulus measures before placing any big bets. The metal has gained 2.4 percent in the second quarter of the year after rising nearly 7 percent in the previous quarter, helped by violence in Ukraine and Iraq. The technical picture for gold looks good with support at $1,300 and resistance at about $1,335 according to one Hong Kong-based precious metals trader.
U.S. To Allow Oil Exports
The Wall Street Journal has reported that the Obama administration is set to lift a four-decade ban on U.S. exports of crude oil. While the initial exports of condensate, light crude oil being pumped from shale fields, will be limited, the market reaction Thursday was quite strong. There were many winners, with the S&P 1500 Composite Oil & Gas Equipment and Services subs-sector rising 3.5% and the Oil & Gas Exploration and Production sub-sector up 2%. The Oil & Gas Refining and Marketing subsector, however, dropped 6%. Refiners had been enjoying soft domestic oil prices, with the continued expansion of domestic production as the export ban continued. Even though the initial exports will be limited, the market is looking ahead to profit pressure for the refiners. The Oil & Gas Refining and Marketing subsector is up 2% this year, while most other oil and gas subsectors have seen double-digit returns driven by production and a rise in oil prices.
That sums up today’s highlights! Remember to keep in touch via our social media channels for all the latest market developments of the day. We hope you have a profitable day on the markets.
