Market News Today: Reduction in Saudi Production, Binance Withdrawals, JPMorgan CEO's Meeting, Back-to-School Demand, and Global Housing Market Outlook

2023-06-06 12:21:06

(Illustration: Camille Charbonneau)

NEWS ESSENTIALS

• The reduction in Saudi production should not push oil prices back up to around US$90, according to Citi. A promise by Saudi Arabia, the world’s largest crude oil exporter, to accelerate production cuts is unlikely to allow prices to rise sustainably to around US$90, according to a Citi note, although other brokers expect a larger deficit in the second half.

• Binance and its US subsidiary have withdrawn US$790 million in the past 24 hours, available data shows. Investors withdrew around US$790 million from cryptocurrency exchange Binance and its US subsidiary in the past 24 hours, data firm Nansen said, a day after the US Financial Markets Authority took the two companies to court.

• JPMorgan CEO Jamie Dimon to meet with group of Democratic representatives — Bloomberg News. JPMorgan Chase Chief Executive Jamie Dimon will meet privately with a group of moderate Democrats elected to the House of Representatives on Tuesday to discuss the state of the banking industry and the U.S. economy, Bloomberg News reported Monday. citing people familiar with the matter.

• Retailers are battling uncertain back-to-school demand after a “volatile” term. Major retailers, including Walmart, Foot Locker and Marks & Spencer, are preparing for a tough back-to-school season this year by stocking laptops at low prices and cutting prices on shoes and uniforms.

• SURVEY — The outlook for the global housing market is improving despite pressure from rising interest rates. The outlook for most major housing markets has improved slightly from three months ago, despite high interest rates, according to a Archyde.com poll of property analysts who were divided on whether accessibility would deteriorate or not.

TRENDS BEFORE OPENING

Major Canadian stock indexes were down after falling oil prices, as worries about global economic growth outweighed Saudi Arabia’s promise to step up production cuts. Wall Street futures fell after the release of mixed US economic indicators on Monday added uncertainty over the Federal Reserve’s future policies. European markets traded on a rollercoaster ride as fears of further interest rate hikes by major central banks persisted. Asian stocks ended on a mixed note, with the Nikkei continuing its ascent and reaching its highest level in nearly 33 years. The dollar index rose, while the price of gold traded in a tight range.

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TITLES TO FOLLOW

• Canaccord Genuity Group: the company said Monday that its board of directors had rejected a $1.13 billion bid put forward by a consortium led by company executives. A regulatory condition is expected to remain unsatisfied when the offer expires on June 13 and so it was decided to reject it, Canaccord said. This decision practically puts an end to the campaign waged for months by the management to acquire the group. The consortium said last week that there was “no reasonable chance” that the terms of the offer would be met by the expiry date. Canaccord also said the board consulted with a special committee of independent directors before making its decision, which in February recommended valuing the company at $1.3 billion to $1.6 billion.

• Cenovus Energy: the tanker said on Monday it had restarted production of about 62,000 barrels of oil equivalent per day after halting it in May due to wildfires in Alberta. The group’s 85,000 barrels were assigned to the Rainbow Lake, Kaybob-Edson, Elmworth-Wapiti and Clearwater operating areas last month. The company said Monday that about 20,000 barrels of Rainbow Lake should be back in production within seven to ten days. About 3,000 barrels remain suspended, however, pending the rebuilding of power infrastructure in various remote locations, the group added.