China imposes its new security law on Hong Kong, amid tense relations between the two largest economies in the world.
The Fourth of July vacation in the United States carries with it a strong threat, and pushes for the most violent closings in states: California, Florida, beach closures and claims that masks must be worn outside.
The broadest opens up to contrast, after its best quarter in a decade.
Jerome Powell Warns that the Recovery Carries “Abnormal Uncertainty”
Royal Dutch Shell and heavy losses due to low oil prices
Here is the most important thing to know about financial markets today, 30 June.
1. China imposes a National Security Law on Hong Kong and the United States responds
China’s top legislature passed the new National Security Law, which tightens Beijing’s control of Hong Kong, which was previously an independent city.
The United States responded by stripping Hong Kong of its special trading position.
The news came after signs of a recovery in the Chinese economy, with the manufacturing PMI rising more than expected to 50.9, and the non-manufacturing index rose to 54.4 from 53.6 a month ago. That was enough for copper contracts, which rose to $ 2.70 a pound for the first time since January.
2. Powell, Manuchin, and testimony before Congress about Corona virus
The President of the US Federal Reserve and Secretary of the Treasury testify before the Financial Services Committee of Congress later in the day, and Powell warns that the economic recovery should not be taken by the market as a given.
According to previously prepared comments, Powell says: “The future course of the economy carries an abnormal uncertainty, and mainly depends on the success in containing the Corona virus.” “A full recovery is unlikely until people are assured of their security, so that the economy can recover fully.”
Powell’s warning comes in conjunction with decisions from several states to tighten restrictions aimed at stopping the spread of the virus, which increases its risk with the approaching celebrations of the fourth of July. The counties in California, Florida, and Florida closed shores, while the states of Kansas and Oregon ordered medical masks to be used in closed areas, while the Republican Party was preparing for the annual meeting in Jacksonville, Florida.
3. Shares open mixed, as Boeing shares continue to rise
US stocks continue to be mixed during the last day of their best quarter in more than a decade.
The futures contracts for the US indices record the following movements:
Dow Jones 30 points down 74 points, 0.29%
S&P 500 decreased 5.87 points, 0.19%.
Nasdaq composite 11.25 points down 0.11%
The Nasdaq index gets support today from earnings reports released after the closing bell on Thursday, from chip maker, Micron Technology, and maker of Xilinx hard parts.
Today, we await the Chicago PMI at 16:45 KSA and the Consumer Sentiment Index for June at 17:00 KSA.
4. Sterling weakens with willingness to spend
The UK plans to open doors over the weekend, with the government forced to close the city of Leicester (which has a population of 330,000) amid its high incidence.
The UK has been trying to get out of the state of emergency, while Greece has refused to receive any direct flights from the kingdom for another two weeks.
British Prime Minister Boris Johnson will deliver a speech today to explain the scale of the crisis and spending on infrastructure and education.
The Pound fell to the low of the month, and remained near a 3-month low against the Euro.
5. Shell sees a shock of $ 22 billion, and we are awaiting today the American Petroleum Institute data
Royal Dutch Shell (LON: RDSa) is trying to find a path to act in light of the Corona crisis that is hitting the oil and gas industry violently. Leading shale oil company Chesapeake Energy collapsed yesterday, and Royal Dutch Shell said today it will write off $ 15-22 billion in the second quarter, reflecting the devastating effects of oil prices.
The company still continues to expect the price of oil to reach 60 dollars a barrel, and the arrival of natural gas for 3 dollars per million British thermal units, but it has shifted those expectations for 2023. For the current year, the company expects that Brent ranges around 35 dollars, and next year records levels of 40 dollars .
Today at 11:30 KSA, we are awaiting the report of the Crude Oil Inventories from the American Petroleum Institute.