Wednesday, 3 July 2019

Stocks rise, oil plunges amid “increasing demand concerns”

Markets rose on Tuesday.

The S&P 500 rose 0.3 percent to a record high, the STOXX Europe 600 rose 0.4 percent and the Nikkei 225 rose 0.1 percent.

However, government bond yields fell. The US 10-year Treasury yield closed at 1.977 percent, its lowest in more than two years, while the 10-year German Bund yield hit an all-time low of -0.363 percent on Tuesday morning.

Oil prices plunged. West Texas Intermediate crude fell 4.8 percent and Brent fell 4.1 percent.

Tyler Richey, co-editor of Sevens Report Research, said that oil fell “because of increasing demand concerns”, noting that the recent manufacturing PMI data were “universally bad when factoring details in”.

Lukman Otunuga, research analyst a brokerage FXTM, said that the truce on the US-China trade war agreed to at the G-20 meeting over the weekend may not help much “given how the implemented tariffs are denting global growth and still remain unresolved—nothing much has changed”.

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