Oil higher as China starts reopening Oil prices are on the rise again as Shanghai takes a big step towards reopening following three days of no new cases in the broader community. Restrictions have been tight in many cities across China which have helped keep a lid on oil prices in this very tight market. But with activity now likely to pick up, crude prices could be on the rise once more. Efforts toward a Russian oil embargo have failed, with Hungary continuing to stand in the way. That could be slowing the rally in oil still, as could US talks with Venezuela which may eventually lead to additional supply. Although ultimately, this comes at a time when major producers simply aren’t producing as much as … [Read More...]

US stocks are rallying as traders got to digest a steady stream of positive news across the world. ? Turnaround Tuesday started when China took the first steps to lockdown exit in Shanghai and as the nation’s top regulators discussed easing its regulatory crackdown. ? The US session got started with big retail earnings that suggest the consumer is still strong and showed surprisingly underlying strength within the home improvement category. A solid retail sales report and key earnings from Home Depot and Walmart painted a picture of a strong US consumer that could probably tolerate rising food and energy prices a little while longer. ? The problem with a strong consumer outlook is that it also means the Fed tightening won’t have to ease up anytime … [Read More...]

The euro is under pressure and is trading at 1.0557, down 0.58% on the day. This follows a spectacular session on Wednesday, when EUR/USD jumped 0.94%, its best one-day showing since March. German Factory Orders slide German factory orders plunged 4.7% MoM in March, after a decline of 0.8% in February. The sharp drop caught the markets off guard, as the consensus estimate stood at -1.1%. The weak release reflects ongoing difficulties for the manufacturing sector, which is grappling with supply chain disruptions and higher costs. The harsh Covid lockdowns in China are likely to exacerbate the situation, as almost half of German companies rely on imports from China, according to an Ifo survey. Germany’s economy will have another headache to deal with, as the … [Read More...]