North American News
US stocks close lower on the day
- Nasdaq streak comes to end
The major US stock indices are closing lower on the day. The Nasdaq index is snapping a 5 day win streak that saw the index rise 4.56% last week. The index today fell -2.26% on the day.
A look at the final numbers is showing:
- Dow fell -164.31 points or -0.52% at 31173.83
- S&P fell -44.93 pints or -1.15% at 3854.44
- Nasdaq fell -262.70 points or -2.26% at 11372.61
- Russell 2000 fell -37.35 points or -2.11% at 1732.00
US treasury auctions off at $43 billion of 3 year notes at 3.093%
- WI Level of 3.098%
- High yield of 3.093% vs Wi level of 3.098%
- Bid to cover 2.43x vs. 6 month avarage of 2.47x
- Dealers 20.3% vs 6 month average of 23.9%
- Directs 19.4% vs 6 month average of 17.4%
- Indirects 60.4% vs 6 month average of 58.7%
- Tail -0.5 basis points vs 6 month average of 0.2 bps
US Employment Trends For June Rises To 119.38 From 118.88 Last Month
Last month revised lower to 118.88 from 119.77
Commodities
Gold Price Forecast: XAU/USD bulls need to move in fast before bears completely take over
- The gold bears have taken charge at the start of the week on a stronger US dollar ahead of more critical US events.
- The neckline of the H4 M-formation near $1,740 remains vulnerable to a test and break thereof.
- A move beyond $1,740 will open the risk of a run on the highs of Friday through $1,750 and then $1,759.60.
The gold price has been pressured by a resurgence in the greenback at the start of the trading week. The US dollar has torn through last week’s highs and had denied the bears in the forex space that were in anticipation of corrections. At the time of writing, DXY, a measure of the US dollar vs. a basket of major currencies is up by over 1% and oscillates around 108 the figure.
Spot gold is moving in on the prior lows, July 8, of $1,729.98. It has made a low of $1,733.92 so far on the day and is currently down by 0.48% at $1,734.09. Sentiment had been brewing, supportive of gold, that the market may have over-estimated the extent to which the Federal Reserve will hike rates this cycle. However, a stronger than expected US June Nonfarm Payrolls report has reinforced expectations for another 75 bp Fed rate hike in July which is giving rise to demand in the greenback at the open before more critical US data this week.
Key US calendar events
The main event will be the publication of June’s consumer Price Index report. Analysts at the National Bank of Canada argue that ”the food component likely remained very strong given severe supply constraints globally, and this increase may have been compounded by sharply higher gasoline prices. As a result, headline prices could have increased 1.2% MoM, lifting the year-on-year rate to a 40-year high of 8.8%.”
US Retail Sales will also be important. A recovery in June is expected, following the series’ first contraction this year in May. ”Spending was likely aided by another firm showing in gasoline station sales and a rebound in the auto segment,” analysts at TD Securities said. ”We also look for another gain in the eating/drinking segment as consumers continue to transition away from goods. That said, control group sales likely fell again.”
Meanwhile, the analysts at TDS are highly bearish on the precious metal. Noting that ”gold bugs are falling like dominoes, with selling flow spreading across participants as CTA trend followers join into the vacuum” they add that ”a major capitulation event may be unfolding in gold.”
”We see evidence that the steepest outflows from broad commodity funds since the Covid-19 crisis may be catalyzing a series of cascading liquidations from various speculative groups. This argues for substantial downside for gold in the coming sessions as participants are forced to sell in a vacuum.”
WTI crude oil futures settle at $104.09
- Down $0.70 or 0.67%
WTI crude oil futures are settling at $104.09. That’s down $0.70 a -0.67%.
The high price reached $105.05. The low price extended to $100.89.
EU News
The European stocks close mostly lower
- German Dax falls 1.4%
The major European stock indices are closing the day with declines. The one exception is the UK FTSE 100 which is closing unchanged on the day.
Looking at the closing levels:
- German DAX fell -1.4%
- France’s CAC, fell -0.61%
- UK’s FTSE 100, unchanged
- Spain’s Ibex, -0.43%
- Italy’s FTSE MIB -0.95%
Other News
Germany’s Habeck: Hard to say if Nord Stream 1 will come back online after maintenance
German Economy Minister Robert Habeck said on Monday it was difficult to say whether Nord Stream 1 gas pipeline would come back online after the maintenance, as reported by Reuters.
Additional takeaways
“Germany has become too dependent on Russia.”
“Two floating terminals could be completed by the end of the year.”
“Germany is aware gas needs to be distributed among others.”
“We have to be prepared for various outcomes, including shipments not renewed after maintenance.”
“We will help each other with gas supplies.”
“People in Europe know that large savings in gas usage are possible.”
“Winter will be critical and we need to prepare as well as possible.”
spain energy minister urges utilities to reduce LNG imports from Russia
- Spain energy minister urges utilities to reduce LNG imports from Russia
(Reuters) – Spain’s Energy Minister Teresa Ribera urged Spanish companies on Monday to reduce imports of liquefied natural gas from Russia and search for alternatives.
“It is desirable that traders seek to minimize imports of Russian gas and diversify the contracts they may hold,” she told a news briefing.
Cryptocurrency News
Shiba Inu burn rate explodes as 205.6 million SHIB tokens are destroyed
- 205.6 million SHIB tokens were burnt in over 30 transactions over the past two days.
- Shiba Inu holder count hit a new all-time high as the meme coin found support from influences.
- Analysts have identified signs of a bullish trend reversal in Shiba Inu.