What we’re reading (7/6)
“Stocks Were Unusually Quiet In June. Traders Think That Is About To Change.” (Wall Street Journal). “After a notably quiet stretch, many analysts are anticipating a break in the lull. The simplest reason: Trading desks tend to become more lightly staffed during the summer as employees take off for the holidays. That generally means there is less liquidity in the markets. In turn, any surprising economic data, corporate news or monetary-policy news tends to ‘hit the market harder than they otherwise might,’ said Nicholas Colas, co-founder of DataTrek Research, in an emailed note.”
“Oil Prices Could ‘Very Easily’ Top $100 A Barrel, Says Former U.S. Energy Secretary” (CNBC). “OPEC and its allies, referred to collectively as OPEC+, twice failed to reach a deal on oil output last week. On Monday, another attempt to resume talks broke down, and discussions were put off indefinitely. The energy alliance, which includes Russia, had sought to increase supply by 400,000 barrels per day from August to December 2021 and proposed extending the duration of cuts until the end of 2022. Last year, to cope with lower demand due to the pandemic, OPEC+ agreed to curb output by almost 10 million barrels per day from May 2020 to the end of April 2022.”
“China Escalates Its Fight Against Big Tech” (DealBook). “On Sunday, Beijing officials ordered Didi, the ride-hailing app, to be removed from the country’s app stores over concerns about the handling of customer data, days after the company completed a blockbuster U.S. I.P.O. Yesterday, they suspended new user registrations for platforms run by two other Chinese companies that recently listed shares in New York, citing the need for cybersecurity reviews. Didi’s shares fell nearly 30 percent in premarket trading, below their I.P.O. price.”
“It Gets Ugly in US Office Markets, Working from Home Shows Up” (Wolf Street). “A nightmare has been unfolding. There were issues before working-from-home and ‘hybrid work models’ slashed current and future real-estate needs of office tenants in the major office markets in the US. And now office footprints got slashed, and companies put their leased but vacant office space on the sublease market, undercutting landlords that want to direct-lease vacant offices.”
“Gold Regains Shine After Central Bank Buying Drops To Decade Low” (Bloomberg). “Central banks may be regaining their appetite for buying gold after staying on the sidelines for the past year. Central banks from Serbia to Thailand have been adding to gold holdings and Ghana recently announced plans for purchases, as the specter of accelerating inflation looms and a recovery in global trade provides the firepower to make purchases. A rebound in buying -- which had dropped to the lowest in a decade -- would bolster the prospects for gold prices as some other sources of demand falter.”
