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 30th

EconomyJun 30, 2020 06:39AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Geoffrey Smith 

Investing.com -- China imposed its new security law on Hong Kong, prompting immediate U.S. retaliation. The July 4th weekend is looking more and more under threat of tighter lockdown measures after counties in California and Florida closed their beaches, and Kansas and Oregon ordered citizens to wear masks in indoor public spaces. Stocks are set to open mixed at the end of their best quarter in over a decade, while Jerome Powell is set to warn that the recovery is "extraordinarily uncertain". And Royal Dutch Shell (LON:RDSa) warned of up to $22 billion in asset impairments due to the lasting hit to oil prices from the pandemic. Here's what you need to know in financial markets on Tuesday, June 30th.

1 China imposes Hong Kong law; U.S. retaliates

China’s top legislative body passed a new national security law tightening Beijing’s control over the formerly autonomous city.

The U.S. government responded by withdrawing the special status on trade that it had accorded to the city.

The news came on a day when the Chinese economy gave further proof of its recovery, with the official manufacturing Purchasing Managers Index rising more than forecast to 50.9, and the non-manufacturing index also rising to 54.4 from 53.6 a month ago.  That was enough to push the price of copper above $2.70 a pound for the first time since January.

2. Powell, Mnuchin to testify as virus fears rise ahead of July 4 weekend

Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin will address the House Financial Services Committee later, with Powell set to warn that an economic rebound cannot be taken for granted.

“The path forward for the economy is extraordinarily uncertain and will depend in large part on our success in containing the virus,” according to Powell’s prepared remarks, which were published by the Fed on Monday. “A full recovery is unlikely until people are confident that it is safe to re-engage in a broad range of activities.”

Powell’s warning comes as numerous states tighten their measures to contain the virus, threatening to complicate the coming July 4th celebrations. Counties in California and Florida have closed their beaches, while the states of Kansas and Oregon are imposing a requirement to wear masks in indoor public spaces – as is the city of Jacksonville in Florida, where the Republican Party convention is due to take place.

3 Stocks set to open mixed; Boeing's gains trimmed

U.S. stocks are set to open mixed on the last day of what is set to be their best quarter in over a decade.

By 6:30 AM ET (1030 GMT), the Dow futures contract was down 54 points, or 0.2%, while the S&P 500 futures contract was down 0.1% and the Nasdaq 100 futures contract was flat.  The Dow underperformed partly because Boeing (NYSE:BA) stock was giving up gains in premarket on news of a big 737 MAX order cancellation from Norwegian Air Shuttle (OL:NWC).

The Nasdaq is, by contrast, being supported by strong earnings reported after the bell on Thursday by chipmaker Micron Technology (NASDAQ:MU) and computer hardware maker Xilinx (NASDAQ:XLNX).

U.S. data due include the Chicago PMI at 9:45 AM ET and the Conference Board’s consumer sentiment index for June at 10 AM.

4. Pound weakens at Johnson prepares to spend, spend, spend

The U.K.’s plans to re-open most of its economy this weekend took a knock as the government was forced to lock down the city of Leicester (pop. 330,000) in response to rising cases of the virus.  

The U.K.’s stuttering exit from its state of emergency was also illustrated by the refusal of Greece on Monday to accept direct flights from the country for another two weeks.

Prime Minister Boris Johnson is set to give a keynote speech today on navigating a way out of the crisis by massively expanding spending on infrastructure and education.

The pound fell to a one-month low against the dollar and remained close to a three-month low against the euro.

5. Shell sees possible $22 billion hit; API Inventories due 

Finding a way out of the corona crisis gets no easier for the oil and gas industry. After the collapse of shale pioneer Chesapeake Energy (NYSE:CHK) at the weekend, Anglo-Dutch major Royal Dutch Shell said it will write down its assets by between $15 and $22 billion in the second quarter, to reflect its expectations of a lasting hit to oil prices.

The company still stuck to its long-term forecast of $60 a barrel and $3 per million Btu for natural gas, but said it will take until 2023 for prices to return to this level. For the current year, it expects an average Brent price of $35 a barrel, rising to $40 next year.

The U.S. oil market will receive its latest update on U.S. crude supplies from the American Petroleum Institute at 4:30 PM ET.

Top 5 Things to Know in the Market on Tuesday, June 30th
 

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 (13)
Uzoukwu Blessing
Uzoukwu Blessing Jun 30, 2020 12:06PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
sorry for the market of today
Randall Wagner
Randall Wagner Jun 30, 2020 11:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Market up again... sorry Brian but looks like no one agrees with you.
Youngwealth Richworld
Youngwealth Richworld Jun 30, 2020 11:41AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
No one cares about fake brokers agents
Bret Lafrance
Bret Lafrance Jun 30, 2020 9:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Randall - i am looking forward to the day that broadcasting divisive, hatefull rhetoric is no longer publicly acceptable, and hope that all can find peace and dignity in such a world.
Randall Wagner
Randall Wagner Jun 30, 2020 9:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
thank you sir
Brian Kelly
Brian Kelly Jun 30, 2020 9:25AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
big crash coming. worst economy in years
Brian Kelly
Brian Kelly Jun 30, 2020 9:15AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
big crash coming. worst economy in years
Randall Wagner
Randall Wagner Jun 30, 2020 8:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A V recovery = worst qtr in 10 years followed by best qtr in 10 years. Oh yes that just happened.
Randall Wagner
Randall Wagner Jun 30, 2020 8:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Virus hoax and media makes up drama. The last 3 years have opened my eyes to the toxicity that the dems and media make up. negative stuff. This is evil and never stops. I buy the dips they create.
Vv Pp
Vv Pp Jun 30, 2020 8:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
do for once something useful for the society and do not post anymore, you are dangerous for public health
Kaveh Sun
Kaveh Sun Jun 30, 2020 8:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Virus is no hoax. The media does make up drama.
Randall Wagner
Randall Wagner Jun 30, 2020 8:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Vv Pp  truth hurts doesn't it
Jimmy Chang
Jimmy Chang Jun 30, 2020 8:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Vv Pp yeah okay from guy namw vv pp. who are yoi antifa?
David Guardado
David Guardado Jun 30, 2020 8:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
As a retail trader, you'd be safe if you took the opposite bet to what investing . com suggests.
Camaro Camero
Camaro Jun 30, 2020 8:23AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's been working for me!
Believe Raymond
Believe Raymond Jun 30, 2020 8:11AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
This is it what else do they have to say to us.... Claiming to be safe at home while people are staving without no government help his individuals from this financial crisis...
Rangga Harimausago
Rangga Harimausago Jun 30, 2020 8:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
time to sell???
Camaro Camero
Camaro Jun 30, 2020 8:09AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah, covered calls!
Ted Dirty
DirtyTed Jun 30, 2020 7:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
6. Iran has issued an arrest warrant on Trump. Interpol refuses it. Russia and China are allies of Iran...now guess what will come.
Taylor Huddlestun
Taylor Huddlestun Jun 30, 2020 6:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
There only thing holding back the economy right now is the state governments pausing reopening and the media spreading fear.
Juan Flores
Juan Flores Jun 30, 2020 6:52AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I agree
Mana Monte
Manamonte Jun 30, 2020 6:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Headline has been found for today's sell off "China imposes Hong Kong law; U.S. retaliates". Today is end of 2Q. Last day for selling large amounts of stocks in order companies to pay their short term debts.
Camaro Camero
Camaro Jun 30, 2020 6:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
100% correct.
 
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