US stocks fall, bitcoin tumbles, 10-year yield leaps

US stocks fall, bitcoin tumbles, 10-year yield leaps

The VIX ended 5.3 per cent higher to 20.60.

Consumer discretionary led nine of the 11 S&P 500 industry groups lower. Health care and energy were modestly higher.

Market highlights

ASX futures down 29 points or 0.41 per cent to 6994 near 7am AEST

  • AUD -0.6% to 68.75 US cents
  • Bitcoin -8.9% to $US21,280 at 7.15am AEST
  • On Wall St: Dow -0.9% S&P 500 -1.3% Nasdaq -2%
  • In New York: BHP -0.7% Rio -2.7% Atlassian -5%
  • Tesla -2.1% Apple -1.5% Amazon -2.9% Netflix -1.6%
  • In Europe: Stoxx 50 -1.3% FTSE 0.1% CAC -0.9% DAX -1.1%
  • Spot gold -0.7% to $US1747.06 an ounce at 4.59pm New York time
  • Brent crude -0.9% to $US95.75 a barrel
  • Iron ore -0.9% to $US99.70 a tonne
  • 10-year yield: US 2.97% Australia 3.40% Germany 1.22%
  • US prices as of 4.59pm in New York

United States

Occidental Petroleum rose more than 8 per cent after Warren Buffett’s Berkshire Hathaway won approval to buy as much as 50 per cent of the stock.

Berkshire applied to the Federal Energy Regulatory Commission for authorisation on July 11, according to a filing published Friday.

“It is concluded that the Proposed Transaction is consistent with the public interest and is authorised” subject to conditions, Carlos D. Clay, acting director division of electric power regulation, said in the filing.

General Motors said it would reinstate quarterly dividend payouts, suggesting the automaker was confident it was past the worst risks from the pandemic and the economic turbulence of the past several months.

Deere & Co, the world’s largest farm equipment maker, lowered its full-year profit outlook and said it has sold out of large tractors as it continues to grapple with parts shortages and high costs.

Europe

European shares fell on Friday and posted a weekly loss as the highest-ever jump in German producer prices in July added to gloom over the economic outlook for the region’s biggest economy and rekindled fears of a recession.

The pan-European STOXX 600 ended 0.8 per cent lower, with travel stocks leading the declines.

Rising energy prices due to the Ukraine war pushed German producer costs in July to their highest ever increases both year-on-year and month-on-month. Energy prices as a whole jumped 105 per cent, compared with July 2021.

Germany’s DAX lost 1.1 per cent, falling the most among its continental peers, and its 10-year yields rose to their highest in four weeks.

The benchmark index is set to end the week about 1 per cent weaker as investors weigh weak economic data, the impact of tighter monetary policy, fears of spiralling inflation and shrinking economies across the region. It gained more than 1 per cent last week.

Commodities

Indonesia may impose a tax on nickel exports this year, President Joko Widodo told Bloomberg, as the biggest producer of the electric-vehicle battery metal looks to refine more at home.

Jokowi, as the president is known, confirmed that Southeast Asia’s largest economy was considering introducing a levy in an interview with Bloomberg News Editor-in-Chief John Micklethwait in Jakarta on Thursday.

That came after an Indonesian government official said early in 2022 that the country was studying a progressive tax on nickel pig iron and ferronickel.

The world’s epic shift into EVs has spurred a surge in demand for battery metals including nickel, lithium and cobalt.

While Indonesia has benefited from rising prices of nickel, also used to produce stainless steel, Jokowi wants the nation to move up the EV supply chain. Ultimately, he wants to stop all exports of raw materials.

View Original Article

Free weekly Newsletter

A weekly breakdown of forecasts and trends

Enter your contact info to get The Financial Gambits VIP Newsletter for FREE.

We hate spam as much as you, if you dont like it just unsubscribe and we will never bother you again