Wall Street closed for the Independence Day holiday
US stocks and bonds markets were closed today for the Independence Day holiday, and will resume operations on Wednesday.
Wall Street closed yesterday marginally higher, after ending the first half of the year with strong gains.
Oil hovers near two-week high after decisions by Russia, Saudi Arabia
Oil prices rose in European trade on Tuesday, resuming gains and almost touching two-week highs amid concerns about the markets turning to an extreme deficit.
Saudi Arabia decided to extend its voluntary production cuts by a million bpd for an additional month in August, while Russia additionally announced a voluntary cut in its oil exports.
Global Oil Prices
US crude rose 1.4% to $71.10 a barrel, with a session-low at $69.94, while Brent climbed 1.5% to $75.96 a barrel, with a session-low at $74.79.
US crude lost 0.45% on Monday, the first loss in four sessions away from a two-week high at $71.72, while Brent shed 0.25% away from a June 22 high at $76.55.
Deficit Concerns
Analysts believe the oil markets is heading for a serious supply deficit due to the extensive production cuts by Saudi Arabia, with the deficit amounting potentially to three million bpd in July and August.
Saudi Cuts
Saudi Arabia's energy ministry announced an extension to the one million bpd production cut, which started in July, for another month in August.
It comes in addition to the other voluntary output cuts that Saudi Arabia agreed upon within OPEC +.
Russian Cuts
Russian Vice Prime Minister, Alexander Novak, announced a cut of 500 thousand bpd in oil exports starting in August.
Such cuts represent 1.5% of global supplies, and raise the total amount of cuts pledged by OPEC+ members to 5.16 million bpd.
Gold extends recovery as US economy weakens
Gold prices rose in European trade for the fourth straight session off three-month lows as the dollar slowed down against a basket of rivals.
It comes after weak US data, which cast some doubt on a potential US Fed interest rate hike in July.
Gold Prices Today
Gold prices rose 0.4% to $1,928.53 an ounce, with a session-low at $1,920.02, after rising 0.1% yesterday, the third profit in a row away from a three-month trough at $1,893 an ounce.
The Dollar
The dollar index fell 0.1% on Tuesday against a basket of major rivals, underpinning gold futures.
Recent US data showed the manufacturing sector much deep into recession.
Current trading remains limited as the US markets are closed for the Independence Day holiday.
US Rates
Odds for a US interest rate hike in July stand strong at 90%.
Data
Tomorrow, the Federal Reserve will release its meeting minutes, expected to include important clues on the cycle of policy tightening starting in July.
And next Friday, the all important payrolls report will be released, crucial for gauging the health and strength of the US economy.
The SPDR
Gold holdings at the SPDR Gold Trust remained flat yesterday at 921.9 tones, the lowest since March 15.
Euro edges up amid limited data
Euro gained ground today against dollar away from a two-week trough, with gains curbed amid limited data coming out later this week.
Now investors look forward to the US Federal Reserve's last meeting minutes, and labor data later this week.
EUR/USD rose 0.1% to 1.0916, with a session-low at 1.0894, after closing steady against dollar yesterday, while marking a 0.4% profit on Friday off two-week lows at 1.0835.
Euro rose over 0.6% in the second quarter of the year against dollar, the third quarterly profit in a row on hopes for reducing the interest rate gap between Europe and the US.
Limited Data
European data this week are rather limited and unimportant, and only cover retail sales for May.
Recent European data paints a picture of decline in manufacturing and commodity exports but services remain strong.
The Dollar
The dollar index fell 0.1% on Tuesday against a basket of major rivals, with thin trading expected today due to the US Independence Day holiday.
Tomorrow, the Federal Reserve will release its meeting minutes, expected to include important clues on the cycle of policy tightening starting in July.
And next Friday, the all important payrolls report will be released, crucial for gauging the health and strength of the US economy.