Energy stocks are finding support as Brent crude bounces up from its lowest level since April, hit during a sharp sell-off over the previous session.

StockMarketNews.Today — Tuesday — 2018/07/17/

What you need to know:

Brent crude bounces up after previous session’s sharp slide.
>Energy stocks find support as European trade develops, helping bourses higher.
>Asian stocks broadly lower.
>Dollar steady ahead of Congressional testimony from Fed chairman.
>Pound looks past domestic UK Brexit politics to August rate call.
>UK jobs data meets forecasts.
>Nasdaq expected to fall after Netflix subscriber growth disappoints.

Leading quote:

“The oil price drop was fuelled by the expectation that Saudi Arabia, Russia and Libya will boost supply. We have a neutral view on oil, expecting support from a re-acceleration in global growth and limited headroom due to potential increases in US shale oil output.” — Julian Wee, investment strategist, Credit Suisse.

Hot topic:

Energy stocks are finding support as Brent crude bounces up from its lowest level since April, hit during a sharp sell-off over the previous session.

The international oil marker is up 0.5 per cent at $72.16, after a slide of more than 4 per cent which took it to a nadir of $71.52 on Monday.

Pressure is easing on oil and gas stocks in European trade, with the Stoxx index tracking the sector up 0.2 per cent after the previous session’s 1.6 per cent drop. BP is up 0.5 per cent, while Spain’s Repsol is 0.3 per cent higher. Royal Dutch Shell is up 0.8 per cent.

The sector remained under pressure in Asia.

Energy stocks led Australia’s S&P/ASX 200 down 0.6 per cent, while shares in China’s oil major Cnooc fell 2.7 per cent in Hong Kong. PetroChina was 2.6 per cent lower.

West Texas Intermediate crude, the main US contract, is down a further 0.3 per cent at $67.88.

brentoil news


European stocks are ticking higher overall, with the region-wide Stoxx 600 up 0.1 per cent — a rise matched by London’s FTSE 100 and Frankfurt’s Xetra Dax 30.

The Hang Seng index in Hong Kong fell 1.2 per cent, hit by financials and technology stocks. In mainland China, the CSI 300 of Shanghai and Shenzhen stocks dipped 0.6 per cent.

Japan’s Topix returned from a three-day weekend with a broad gain of 0.9 per cent, although energy stocks missed out.

The S&P 500 ended 0.1 per cent lower in New York, with the drop in energy stocks cushioned by strength in the financial sector after solid quarterly earnings. The tech-heavy Nasdaq Composite fell 0.3 per cent from Friday’s record closing high.

According to futures trade, the Nasdaq will fall a further 0.4 per cent, with shares in Netflix expected to drop after it revealed lower-than-forecast subscriber growth in quarterly earnings released after Monday’s close. The S&P 500 is expected to fall 0.1 per cent.

Forex and fixed income:

The dollar index is 0.1 per cent lower at 94.452 ahead of US Federal Reserve chairman Jay Powell’s semi-annual testimony to the House financial services committee later in the US session. Investors will examine his outlook for the domestic economy and inflation for pointers on the pace of tightening this year.

The yield on the 10-year US Treasury is 1 basis point higher at 2.869 per cent.

Japan’s yen is 0.1 per cent weaker at ¥112.13 per dollar while the euro is 0.2 per cent stronger $1.1732.

The pound is retaining its ability to look past political turmoil — up 0.2 per cent to $1.3257 — as investors concentrate on economic data and the outlook for an August rate rise, rather than government concessions to hardline Brexiters. UK jobs data met forecasts, showing record employment but also the weakest wage growth in six months.


Gold was 0.2 per cent stronger at $1,242.11 an ounce.


Categories: News

2 replies


  1. Asia-Pacific markets buoyed by solid Wall Street gains. Sydney leads as BHP Billiton rallies on upbeat iron ore output forecast. – Stock Market News Today
  2. Senior U.S. officials led by Treasury Secretary Steven Mnuchin recently sent an invitation to their Chinese counterparts, including Vice Premier Liu He, to hold another bilateral trade meeting. – Stock Market News Today

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