Today’s News
Oil prices increased in early trading on Monday as investors awaited signs that the Federal Reserve might start reducing interest rates as early as September. By early GMT, Brent crude had risen by 48 cents to USD 83.10 a barrel, while U.S. West Texas Intermediate crude gained 42 cents, reaching USD 80.55.
Image Source: CNOOC
“Since the June FOMC meeting, inflation and labour market data have signaled that disinflation and labour market rebalancing are in place, which we expect will allow the Fed to begin its interest rate cutting cycle in September,” noted ANZ Research.
The Federal Reserve is scheduled to hold its next Federal Open Market Committee (FOMC) meeting on interest rates from July 30-31. Although the rates are expected to remain unchanged, investors are keenly looking for any indications of upcoming cuts later this year.
In a significant political development, U.S. President Joe Biden halted his reelection campaign on Sunday, endorsing Vice President Kamala Harris as the Democratic candidate against Republican Donald Trump in the upcoming November election.
Concerns about slower economic growth in China also influenced oil markets, as the country reported a 4.7% growth rate for the second quarter, which was below expectations. This development has raised concerns about China’s oil demand.
Additionally, China released a policy document on Sunday following a secretive meeting of the Communist Party’s Central Committee, which is held approximately every five years. The document outlines ambitions ranging from the development of advanced industries to enhancing the business environment, though it showed no signs of imminent structural changes in the economy.
Other News
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Byju Raveendran faces a critical juncture as his ed-tech firm Byju’s undergoes insolvency proceedings, with its valuation plummeting and thousands of jobs at risk.
China Tightens Hedge Fund Regulations
China’s hedge fund industry, worth USD 715 billion, is preparing for strict new rules that raise operating requirements and enforce tighter controls on investments and marketing.
Gold Strengthens Amid Biden’s Withdrawal
Gold prices have increased as investors seek stability following U.S. President Joe Biden’s decision to exit the 2024 presidential race, boosting the allure of gold amidst market uncertainties.
