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It's PMI day, Qatar is set to respond to Saudi-led demands, and oil extends its rally. Here are some of the things people in markets are talking about today.
PMI day
Global Manufacturing Purchasing Managers Index Day kicked off in China overnight, where the Caixin Media and Markit Economics gauge rose to 50.4 in June, showing a return to expansion after contracting in May. Euro-area manufacturing expanded at the strongest pace in over six years with IHS Markit's PMI climbing to 57.4, as data for Greece showed an expansion for the first time since last August. In the U.K. there were signs that uncertainty is hitting demand, as the reading fell more than expected to a three-month low of 54.3, down from 56.3 in May. Markit's U.S. manufacturing data is due at 9:45 a.m. Eastern Time.
Qatari console
Qatar is set to deliver its official response to the 13 demands made by the Saudi-led coalition of Gulf states which have cut diplomatic and transport links with the country, even as the U.S. and Kuwait step up diplomatic efforts to resolve the month-long crisis. Qatari Foreign Minister Mohammed bin Abdulrahman Al Thani, who said on Sunday that his country is ready to face the consequences of not acceding to the demands, has landed in Kuwait to deliver his government's answer, according to Doha-based Al Jazeera. Doha's QE Index dropped as much as 4 percent yesterday, in the first trading session after a week-long holiday.
Oil rise
A barrel of West Texas Intermediate for August delivery was trading at $46.14 as of 5:33 a.m. after U.S. production showed signs of slowing, with the Baker Hughes Inc. rig count dropping for the first time in 24 weeks on Friday. Production in Libya, which is exempt from the OPEC-led output deal, surpassed one million barrels a day for the first time since June 2013, according to a person with direct knowledge of the matter. Oil short-sellers increased their bets on lower crude prices to the highest level since August in the week ended June 27, but the bearish position increased at a much slower pace than previously, showing that a change in positioning may be in the cards.
Markets mixed
Overnight, the MSCI Asia Pacific Index slipped 0.2 percent, with Japan's Topix index climbing 0.2 percent despite Prime Minister Shinzo Abe's ruling party winning its lowest-ever tally of seats in an election for Tokyo's assembly -- a result which could hurt his chances in next year's national election. In Europe, the Stoxx 600 Index was 0.7 percent higher by 5:45 a.m., with energy stocks buoyed by oil prices leading the gains. S&P 500 futures were also rising.
Coming up...
June's ISM manufacturing for the U.S. is due at 10:00 a.m. We get vehicle-sales data today, with the total expected to be 16.5 million, continuing the year-on-year declines that have been the trend for 2017. With the holiday tomorrow in the U.S., markets are closing early. Stock will finish trading at 1 p.m., with bonds markets closing at 2 p.m.
What we've been reading
This is what's caught our eye over the weekend.
- Odd Lots Podcast: Why a natural gas company is shaking the Islamic finance world.
- Goldman said to review its commodities business after worst start in a decade.
- The rally in the riskiest corporate bonds is showing signs of faltering.
- Tesla CEO Musk realizes 15-year quest with Model 3.
- How retailers can fight back against Amazon.
- Burger costs hit a three-year low ahead of Independence Day.
- Is it unethical for me not to tell my employer I've automated my job?
To contact the editor responsible for this story: Tracy Alloway at talloway@bloomberg.net, Isobel Finkel
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