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

Top 5 Things to Know in the Market on Tuesday, June 2nd

EconomyJun 02, 2020 06:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- Peaceful protests at the killing of an unarmed black man by police degenerate into riots and looting, while President Trump threatens governors with the imposition of martial law. China is going slow on its purchases of U.S. agricultural goods, while Germany is planning another big stimulus package - with its auto industry set to be one of the big beneficiaries. And oil prices are rising again as Russia and OPEC close in on an extension of their deal on output restraint. Here's what you need to know in financial markets on Tuesday, June 2nd.

1. U.S. cities hit by more violence

U.S. cities were rocked by another night of protests triggered by the killing of an unarmed black man by Minneapolis police.  Two separate autopsies conducted on George Floyd came to the conclusion of homicide, but offered different causes.  

The protests were marked on the one side by outbreaks of looting, and on the other by violence against both media and peaceful protestors as well as violent ones. President Donald Trump threatened in a call with state governors to send in combat troops if they failed to bring the situation in their states under control.

New York Governor Andrew Cuomo said New York would face another curfew tonight after widespread violence and looting in lower Manhattan overnight.  The protests threaten to derail the reopening of much of the U.S. economy, which analysts have repeatedly said depends heavily on consumer and business confidence rebounding.

2. China goes slow on farm goods purchases

Chinese government officials told major state-run agricultural companies to pause purchases of some U.S. farm goods including soybeans, Bloomberg reported, in a move that appears to undermine Beijing’s previous promises to increase purchases under the ‘Phase 1’ trade deal signed in January.

State-owned traders Cofco and Sinograin were ordered to suspend purchases while Chinese officials also told state-buyers to halt American cotton and corn imports, Bloomberg reported. It also noted that some pork purchases have been delayed.

The move is the latest development to reflect worsening relations between Beijing and Washington after the enactment of a new security law that the U.S. said ended the autonomy and freedoms of Hong Kong.

3. Stocks set to open higher, eye on reopenings

U.S. stock markets are poised to open higher, shrugging off the almost nationwide rioting and accompanying ballyhoo.

Markets are focusing more on the lifting of restrictions on the normal operation of businesses as efforts to mitigate the Covid-19 pandemic get a helping hand from the start of summer.

By 6:30 AM ET (1030 GMT), the Dow Jones 30 futures contract was up 178 points, or 0.7%, while the S&P 500 futures contract was up 0.6% and the Nasdaq 100 futures contract was up 0.6%.

One stock in focus later will be Apple (NASDAQ:AAPL), which has cut prices for its iPhones in China in an attempt to revive flagging sales in the wake of the pandemic.

4. Germany pulls Europe higher with new stimulus package

The German stock market hit a three-month high, pulling European markets in its wake, amid reports that the government will debate a further stimulus package to the economy Tuesday.

Local media reports put the size of the package at between 80 and 100 billion euros (($89 to $111 billion), and said much of it will be aimed at the auto industry, which supports over 12% of the country’s jobs directly and indirectly.

Elsewhere in Europe, the EU and U.K. begin their last round of talks on trading relations after the current post-Brexit transitional phase lapses at the end of the year. The U.K. government has said it won’t seek an extension of the transition, which has kept conditions for businesses effectively  unchanged since the U.K. formally left the bloc earlier this year.

5. API oil inventories due as Russia, OPEC mull extension of output deal

Oil prices surged again on hopes that OPEC and Russia will extend their agreement on output restraint, which is due to lapse at the end of June.

The Russian government is scheduled to discuss the issue at a meeting Tuesday, according to local media reports, with at least one suggesting that Russia’s preference is for an extension of only one month.

In the U.S., the American Petroleum Institute will report its weekly data on U.S. inventories of crude and refined products at 4:30 PM ET as usual.

By 6:30 AM, U.S. crude futures were up 2.6% at $36.40 a barrel, while Brent futures were up 2.9% at $39.42.

Top 5 Things to Know in the Market on Tuesday, June 2nd
 

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 (4)
Bulls MakeMore
Bulls MakeMore Jun 02, 2020 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I'm waiting for a dip to buy
Bulls MakeMore
Bulls MakeMore Jun 02, 2020 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
...maybe better not to wait?
Edenneil james Balatbat
Edenneil james Balatbat Jun 02, 2020 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
9 ??
Rhyan Cristian
Rhyan Cristian Jun 02, 2020 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you're waiting for another 5 to 10 years before you see another dip
Bulls MakeMore
Bulls MakeMore Jun 02, 2020 8:19AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Rhyan Cristian I mean just a small dip
Mihai Petrea
Grasu85 Jun 02, 2020 8:02AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What ? how ? civil violence in USA , comercial problem and big tensions with China , and they announce "Stocks open Higher" ! What do you think guys ? Buy/Hold/Sell ?
Anakin Skwk
Anakin_Skwk Jun 02, 2020 7:10AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
June 1st to June 18th is another e-commerce promotion season in China beside double 11(November 11th). This is one of the reason why Apple cut prices for its iPhones in China.
Raoul Santha
Raoul Santha Jun 02, 2020 6:54AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
said
 
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