Stocks fall, crude oil prices pare losses as OPEC + meets

Crude prices fluctuated amid a meeting of OPEC and non-OPEC oil producers led by Russia, as countries were expected to agree to increase production.

Brent crude futures, the global oil standard, trimmed earlier losses and rose about 0.1%. The Market expects supply to rise Following a meeting between the 13 members of the Organization of Petroleum Exporting Countries (OPEC) and 10 non-OPEC producers on Thursday. The United States and Europe pressured the group, dubbed OPEC+, to pump more crude, as Russia’s invasion of Ukraine sent oil prices above $100 a barrel.

Some OPEC members were considering the idea of ​​suspending Russia’s participation in a production deal, as Western sanctions and partial european ban begin to undermine Moscow’s ability to pump more, The Wall Street Journal reported, Wednesday.

The S&P 500 fell 0.3% on Thursday. The technology-focused Nasdaq Composite lost 0.5% and the Dow Jones Industrial Average fell 0.2%. Major stock indexes fell on Wednesday in a volatile trading session to start the month.

US stocks fell on Wednesday, the first trading day of June, after capping a volatile month.


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Michael Nagel/Bloomberg News

In the bond markets, the return on the index 10-year treasury bonds On Thursday, it fell to 2.901% from 2.930% Wednesday. Yields and prices move inversely.

Investors have struggled in recent months to assess the extent and speed of the Fed’s boosting of interest rates in its quest to do so Inflation rate. Some money managers worry that tightening policy could slow economic growth or even push the US into recession.

Supply chain disruptions exacerbated by the pandemic have been further damaged The war in Ukraine And China’s strategy to combat the Corona virus. This has increased the cost of energy, food and other commodities this year.

An attempt to ship grain stranded by the Russo-Ukrainian war Show progress Wednesday. UN Secretary-General António Guterres is leading discussions on how to transport grain and sunflower oil, which is trapped in Ukrainian ports in the Black Sea – and transport Russian grain and fertilizer to global markets.

“It is a very challenging environment. There are many factors at play here, and it is very difficult to explain the dynamics,” said Peter Garnery, head of equity strategy at Saxo Bank. “We think the Fed has to be very aggressive to control inflation.”

Investors are watching Labor market data. Federal Reserve Chairman Jerome Powell has Expressed concern in recent months The job market is overheated. Can the narrow job market In addition to inflation As competition for workers enhances the bargaining power of wages.

The ADP employment report showed that the private sector added 128,000 jobs in May, lower than the 299,000 economists polled by the Wall Street Journal had expected.

In individual stocks, shares

rubbery

It rose 13% after the online pet products retailer posted a surprise profit and forecast a revenue range that was mostly above Wall Street estimates.

MongoDB

Shares rose 6.5% after the database company’s results beat Wall Street estimates.

Offshore, the Stoxx Europe 600 continental index was up 0.5%. UK markets were closed for a holiday.

Major indices in Asia closed lower, with South Korea’s Kospi and Hong Kong’s Hang Seng down 1% each. Japan’s Nikkei 225 was down 0.2%, while China’s Shanghai Composite bucked the trend, adding 0.4%.

Write to Caitlin Ostroff at [email protected]

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