Here’s today’s ‘Just A Minute’ bringing you a 60 second summary of what’s happening in the financial markets:
Main Trading Event Of The Day: U.S. FOMC Meeting Minutes @ 18.00 & EUR Mario Draghi Speaks @ 18.30 GMT
WHAT WE’RE WATCHING TODAY
Brent Falls As Libya Restarts Oilfield
Brent crude fell below $109 a barrel today as Libya restarted an oilfield, leaving it on track to fall for an eighth session. This would make it its longest losing streak in over four years. Easing worries over possible disruptions to supply from the conflict in Iraq also dragged on prices. August Brent crude declined 12 cents to $108.82 a barrel, down nearly 6 percent from a nine-month high reached in June. U.S. crude for August delivery was up 3 cents at $103.43 a barrel, after Tuesday’s settlement marked its longest losing run since December 2009. Meanwhile, Iraq’s new parliament has brought forward the date of its next session to July 13, in the face of a militant insurgency that has swept large parts of the country. Investors are eyeing more data on oil inventories in the United States and on China’s trade later this week to take the pulse on oil demand at the world’s two largest consumers. Lingering weakness in the Chinese economy could prompt Beijing to launch further stimulus measures to shore up growth which could lift its fuel demand. U.S. crude inventories fell by 1.7 million barrels in the week to July 4, compared with analyst expectations for a decrease of 2.2 million barrels.
Gold Inches Up On Fund Inflows
Gold inched up as the world’s top bullion fund saw a second straight day of inflows, even as markets awaited the minutes of the Federal Reserve’s June policy meeting to gauge the U.S. central bank’s outlook for the economy and interest rates. Spot gold edged up 0.2 percent to $1,321.15 an ounce. SPDR Gold Trust confirmed its holdings rose 2.09 tonnes to 800.28 tons on Tuesday, after gaining 1.8 tons on Monday. Demand for gold was boosted by violence in the Middle East and Ukraine. Bullion investors are also awaiting the minutes of the Fed policy meeting later today for clues on the timing of a rate hike. A strong U.S. jobs report last week fuelled fears of an earlier than expected rate hike in the world’s largest economy. A hike would encourage investors to withdraw money from non-interest-bearing assets such as gold.
Australia Consumer Confidence Improves
A measure of Australian consumer sentiment improved edged higher in July as worries about family finances eased. The index of consumer sentiment rose a seasonally adjusted 1.9 percent in July, from June when it had inched up only 0.2 percent. The index still has not fully recovered from May’s 6.8 percent dive which followed a budget of welfare reforms, cutbacks and increased charges for services. The index reading of 94.9 for July was down 7.1 percent on the same month last year and means pessimists still exceed optimists. The largest improvement in July came in the survey’s measure on the outlook for family finances over the next 12 months, which jumped 12.3 percent though from very low levels. The index of family finances compared to a year ago rose 1.9 percent and that for economic conditions over the next 12 months increased by 3.9 percent. Consumers remained cautious on the longer-term outlook, however, with the index of economic conditions over the next five years dropping 3.8 percent.
That sums up today’s highlights! Remember to keep posted on our social media pages for all the latest trading updates for the day. We hope you have a profitable day on the markets.
