Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

England Reopening Blow, ECB Bond, Bitcoin and Higher Crude - What's Moving Markets

EconomyJun 14, 2021 05:17AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Peter Nurse

Investing.com -- England set to delay final reopening timetable, EU plans to launch 10-year recovery bond, Bitcoin surges to two-week high on Musk’s comments, while crude climbs to multi-year highs. Here's what's moving markets on Monday, June 14th.

1. England set to deliver reopening blow

Confidence has been growing throughout most of the Western democracies that the worst of the Covid-19 pandemic may be over as economies reopen on the back of ramped up vaccination programs.

However this optimism may receive a blow later Monday, with U.K. Prime Minister Boris Johnson due to announce whether the planned lifting of restrictions in England on June 21 can go ahead on time. And this is in a country that has been very successful in vaccinating its population,

The omens aren’t great as the rapid spread of the Delta variant, officially a "variant of concern", has thrown those plans into jeopardy.

Total British cases of the Delta variant, first identified in India, have jumped by 29,892 to 42,323, Public Health England said on Friday, adding that the variant currently accounted for over 90% of new Covid-19 cases.

British Prime Minister Boris Johnson said on Sunday he is now less optimistic about the U.K.’s pandemic outlook, suggesting restrictions may need to be kept in place beyond his target date for relaxing the rules.

More government support for businesses is likely if there is a delay to easing Britain's lockdown restrictions, junior health minister Edward Argar said on Monday.

"Were he (the PM) to make an announcement that he's delaying it, I would expect him to address that issue as well at the same time," Argar told the BBC when asked if there would be extra support for businesses

2. Stocks seen just higher; Fed meeting eyed

U.S. stocks are seen opening marginally higher Monday, remaining around record levels, ahead of this week’s eagerly anticipated Federal Reserve meeting.

By 6:30 AM ET, Dow Jones futures were up 10 points, less than 0.1%, S&P 500 futures were 0.1% higher and Nasdaq 100 futures climbed 0.2%.

The three major indices closed just higher Friday, with the broad-based S&P 500 ending 0.2% higher, at a new record high. The blue-chip Dow gained under 0.1% while the tech-heavy Nasdaq closed 0.4% higher.

The Fed’s two-day policy meeting will likely limit activity in the early part of the week. The central bank is not expected to take any action, but investors will be focusing on the statement at the conclusion of its two-day policy meeting on Wednesday amid concerns recent jumps in inflation could pressure the central bank to start tapering its stimulus sooner than expected.

“Our preferred view is that the statement, projections and press conference will not interfere with the core summer trend of a search for yield amidst a broad, cross-market decline in volatility levels,” said analysts at ING, in a note. 

In corporate news, Tesla (NASDAQ:TSLA) will be in the spotlight after CEO Elon Musk tweeted over the weekend that the electric car manufacturer will resume bitcoin transactions once it confirms there is reasonable clean energy usage by miners. 

Meme stocks like AMC Entertainment (NYSE:AMC), GameStop (NYSE:GME) and Clover Health (NASDAQ:CLOV) will remain in focus after last week’s volatile trading.

3. EU prepares for 10-year bond sale

The European Central Bank looks set to take a leaf out of the Federal Reserve’s pandemic recovery book by keeping its ultra easy monetary policies in place, and urging the region’s fiscal authorities to do the same, until there are clear signs that a recovery is underway.

“We have to take the economy through the pandemic and into a recovery phase, which has now started,” ECB President Christine Lagarde said in an interview with Politico published Monday. “We need to really anchor the recovery. We always talk about inflation anchoring and we are not oblivious to that. But the recovery needs to be firm, solid and sustainable.”

With this in mind, Reuters reported Monday that the European Union has hired banks for a 10-year bond sale, the first to finance its recovery fund, a crucial step in financing the bloc's economic recovery from the coronavirus pandemic.

The sale will be launched on Tuesday, subject to market conditions, Reuters said, and is the start of up to 800 billion euros of debt issuance that will back grants and loans to member states - an unprecedented act of fiscal solidarity on the EU's part that may transform it into a leading European borrower.

4. Bitcoin surges to two-week high

Bitcoin, the world’s largest cryptocurrency by market capitalization, surged Monday, climbing to a two-week peak just shy of $40,000 after Tesla boss Elon Musk suggested the electric car manufacturer could start using the digital currency as payment once more.

Comments from Musk have roiled Bitcoin over the last few months after he firstly announced that Tesla would accept it as payment for its cars, while purchasing $1.5 billion of the cryptocurrency. He later rolled back on this, saying the electric car maker would not accept bitcoin due to concerns over how mining the currency requires high energy use and contributes to climate change.

"When there's confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions," Musk said on Twitter on Sunday.

At 6:30 AM ET, Bitcoin was up 9% at $39,096.00, after having collapsed from a record peak of almost $65,000 amid a regulatory crackdown in China and Musk's apparently wavering enthusiasm for it.

Bitcoin has also been helped of late by the decision of El Salvador to adopt the digital currency as parallel legal tender, the first country to do so. 

President Nayib Bukele has played up bitcoin's potential as a remittance currency for Salvadorans overseas, but only a few of the traditional remittance companies who send the bulk of cross-border transfers have been seen taking advantage.

5. Crude near multi-year highs; U.S. air travel climbs 

Crude oil prices pushed higher Monday, trading near multi-year highs, helped by an improved outlook for demand as increased Covid-19 vaccinations push global travel back to near normalcy.

By 6:30 AM ET, U.S. crude was up 0.8% at $71.47 a barrel, climbing to its highest level since October 2018, and on course for a fifth quarterly advance, which would be the best run since 2010. Brent was up 1% at $73.38, around its highest since May 2019. 

Both contracts registered gains of over 1% last week, the third positive week in a row.

U.S. daily air travelers have topped 2 million for the first time since the pandemic began with traffic returning to pre-pandemic levels in North America and much of Europe as lockdowns and other restrictions are being eased, although the U.K. could throw a spanner in the works later Monday (see above).

That said, the International Energy Agency predicted last week that global oil demand will recover to pre-pandemic levels late next year, tying in with a bullish forecast from the Organization of the Petroleum Exporting Countries that demand in 2021 would rise by 5.95 million barrels per day, up 6.6% from a year earlier.

Additionally, Iran said it has reached a broad agreement with the U.S. over the lifting of sanctions on its industrial sectors, including energy, but warned there was “very little time left” for world powers to revive a 2015 nuclear deal.

Even with the market trading at these elevated levels, traders seem optimistic about the scope for further gains. Friday’s weekly data from the Commodity Futures Trading Commission showed that WTI positioning was at the most bullish in about three years.

One potential note of caution, U.S. oil rigs in operation rose by six to 365, the highest since April 2020, energy services company Baker Hughes said in its weekly report on Friday.

It was the biggest weekly increase of oil rigs in a month, as drilling companies sought to benefit from rising demand.

 

England Reopening Blow, ECB Bond, Bitcoin and Higher Crude - What's Moving Markets
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (12)
Corey DeLaplain
SniperSam Jun 14, 2021 2:03PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So sad that all of the supposed "WOKE and science" following western nations didn't just let this pandemic run its course from the start. There would probably have been full herd immunity months ago. Obviously, had they done that they wouldn't have been able to impose their tyranny, and big pharma wouldn't be raking in the cash! This reminds me of our economic situation of kicking the can down the road, instead of letting the laws of economics run its course and have a stronger healthier future.
Bulent Ok
Bulent Ok Jun 14, 2021 7:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I live in London. One thing I can tell you is that.... The general public here truly believes that the lockdowns are in the best interest of Boris and his stay in power agenda. I too believe this and you can see the intention from miles away. Based on this and being fed with golden spoon from big pharma and money daddies like roths.... The lockdown will not be lifted. The stock markets on this news will reverse and headback down to last March lockdown prices... Beside this also the 25 June rebalancing day is only shorter than 2 weeks from now, but then it can start anymoment until then from now.... Plus the very recent large corrections we had, now climbed very quickly again... All this indicates that we are up for a very serious correction anything from 20% to 30%
Amie Inconnue
Amie Inconnue Jun 14, 2021 7:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you for the insight - many things are only visible when you live in that country!
Jouni Matero
Jouni Matero Jun 14, 2021 7:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yet some bulls-for-lie click thumb down since they can't stand the fact Major correction is inevitable sooner or even sooner.
Michael Rohde
Michael Rohde Jun 14, 2021 7:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Not allowing basically vaccinated Americans in fur a summer holiday is getting more outrageous. Economically stupid.
marcus daily
marcus daily Jun 14, 2021 7:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So the vaccine doesnt work w this new varient from India? Here in the states that have opened up fully, no big cases. Strange
Richard Lomax
Richard Lomax Jun 14, 2021 7:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Excellent reporting early today by Nurse - of course personal opinions as to the future will differ greatly.
Cali Cartel
Cali Cartel Jun 14, 2021 6:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This peter nurse guy is bluffing
Ghulam Saeed
Ghulam Saeed Jun 14, 2021 6:53AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
how
NUNO LOUREIRO
NUNO LOUREIRO Jun 14, 2021 6:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The UK one of the countries with most people vaccinated is having a new surge in covid cases and the stocks react with..... ATH
Jouni Matero
Jouni Matero Jun 14, 2021 6:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bubble hype at its biggest so no Wonder. Small retailers will get sc..wed big time over the summer, just watch.
apc apc
apc apc Jun 14, 2021 6:01AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hmm. why not listento proper science?
Bong Pal
Bong Pal Jun 14, 2021 5:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
popl SLoTS ASSET#2208
Vasken Armo
Vasken Armo Jun 14, 2021 5:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This article is making claims about the US futures market price at 6:30 AM ET on when its only 5:55 right now. Pretty careless. This is propaganda anyways so whatever.
Robert Morris
Robert Morris Jun 14, 2021 5:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Read it again, it says “by 6:30 am et” not “at 6:30 am et”
Francesco Lucchesi
Francesco Lucchesi Jun 14, 2021 5:57AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wait for September/October before declaring victory. it truly remains to be seen this reopening
Bong Pal
Bong Pal Jun 14, 2021 5:56AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
ABA 453204
Trevor Roberts
LimitUp Jun 14, 2021 5:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Boris Johnson doesnt seem to me on the surface as good as i thought.
Dennis Touey
Dennis Touey Jun 14, 2021 5:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You are correct in that assumption.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email