By Jessica Jaganathan

SINGAPORE (Reuters) – Oil prices slipped on Wednesday after U.S. President Donald Trump dashed hopes for a fourth stimulus package to boost the coronavirus-hit economy and on a larger-than-expected build-up in U.S. crude stocks.

U.S. West Texas Intermediate (WTI) crude <CLc1> oil futures fell 87 cents, or 2.1%, to $39.80 a barrel by 0104 GMT while Brent crude <LCOc1> futures fell by 74 cents, or 1.7%, to $41.91 a barrel.

President Trump, still being treated for COVID-19, ended talks on Tuesday with Democrats on an economic aid package for his pandemic-hit country with the U.S. presidential election only weeks away.

Price were also pressured by data from the American Petroleum Institute showing U.S. crude oil stocks rose by 951,000 barrels last week – more than expected. <API/S>

“(This was) not exactly what the recovery doctor ordered as the oil market was already tanking from a two-week high after President Trump quashed hope for a pre-election stimulus deal,” said Stephen Innes, chief market strategist, at online brokerage AxiCorp.

But losses were limited by restrictions on the supply side.

Energy companies were busy securing offshore production platforms and evacuating workers on Tuesday, some for the sixth time this year, as Hurricane Delta took aim at U.S. oil production in the Gulf of Mexico, which accounts for 17% of total U.S. crude oil output.

In Norway, meanwhile, the Lederne labour union said on Tuesday it will expand its ongoing oil strike from Oct. 10 unless a wage deal can be reached in the meantime. Six offshore oil and gas fields shut down on Monday as Lederne ramped up its strike, cutting the country’s output capacity by 8%.

(Reporting by Jessica Jaganathan; Editing by Kenneth Maxwell)

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  • President Trump upended a quiet day on Wall Street on Tuesday by announcing that he was ending negotiations over a new economic aid package with Democrats, after accusing Speaker Nancy Pelosi of “not negotiating in good faith.”

  • The S&P 500 had begun to climb before Mr. Trump’s announcement, on Twitter. It slid more than 1 percent soon afterward, and ended the day about 1.4 percent lower.

  • The tweet also sent shares of airlines reeling. Shares of American Airlines fell more than 4 percent, giving up early gains, while United Airlines stock fell more than 3 percent. Shares of Boeing, which had earlier said it was lowering long-term estimates for aircraft sales, fell nearly 7 percent.

  • Earlier in the day, the Federal Reserve chair, Jerome H. Powell, urged the government to take action to address the economic pain the pandemic has inflicted on millions of households. “Too little support would lead to a weak recovery, creating unnecessary hardship for households and businesses,” Mr. Powell said in remarks before the National Association for Business Economics.

  • Since approving nearly $3 trillion in economic relief this spring, Congress and the White House have failed to reach agreement on another package, despite warnings from economists, including Mr. Powell, that follow-up aid is needed to maintain the country’s economic recovery.

  • Though talks all but collapsed in early August, Ms. Pelosi and Treasury Secretary Steven Mnuchin have resumed discussions in recent days as companies continue to furlough or

LONDON (Reuters) – The Turkish lira’s move towards the 8-to-the dollar mark will compound its 25% slide this year, amplifying existing pressures on companies and the broader economy.

Below are three charts illustrating the pressure points for Turkey, where the currency is enduring its eighth straight year of losses, having lost more than 80% of its value in the past decade.

1/ PRIVATE SECTOR FX DEBT

Turkey’s external public debt burden is deemed manageable but its companies and financial institutions face hefty repayments of nearly $10 billion in the next two months.

“Further lira depreciation would distort corporate balance sheets more and thus would have negative impact on investment prospects,” said Ugras Ulku, head of emerging Europe research at the Institute of International Finance (IIF).

More currency weakness would constrain companies’ ability to increase investment at a time when stronger capital spending is crucial in order to improve productivity, employment, competitiveness and exports, Ulku added.

Graphic: Turkey private sector external loan repayments – https://fingfx.thomsonreuters.com/gfx/mkt/ygdvzkgrjpw/Turkey%20private%20sector%20external%20loan%20repayments.PNG

Price pressures are a sore point for Turkey, which has a history of hyperinflation – overcoming it just 17 years ago. Below-inflation interest rates have failed to check price growth while offering little incentive to foreign capital, further weakening the currency in a country with a persistent current account deficit.

Data on Monday is expected to show inflation rose further in September.

“We expect the depreciation of the lira to be the main driver of the increase in inflation,” Goldman Sachs’ Kevin Daly told clients. In fact, last month’s figures likely underestimated the pace of core inflation, given tax cuts in various sectors, he added.

Graphic: Turkey CPI and interest rates – https://fingfx.thomsonreuters.com/gfx/mkt/jbyprmajwve/Turkey%20CPI%20and%20interest%20rates.PNG

International oil prices have dropped around 40% since the start of the year, providing some relief to importing nations. Yet lira weakness means

By Tom Arnold and Elizabeth Howcroft

LONDON, Oct 2 (Reuters)Stocks sold off and investors quit riskier assets on Friday after U.S. President Donald Trump said he and his wife had tested positive for the coronavirus and would isolate, four weeks before U.S. elections.

Investors sought safer assets such as gold, U.S. Treasuries and the Japanese yen.

U.S. stock futures fell and European shares opened lower, although they recovered some losses in early London trading after the initial overnight move. The STOXX 600 was down 0.3% .STOXX and London’s FTSE 100 was down 0.7% .FTSE at 0930 GMT.

Shortly before 0500 GMT, Trump said on Twitter that he and his wife had been tested for coronavirus after Hope Hicks, a senior advisor who recently traveled with the president, tested positive.

He later tweeted he and the first lady had tested positive: “We will begin our quarantine and recovery process immediately,” he said.

S&P 500 futures — which fell sharply on Trump’s tweet — stabilised somewhat and were down 1.4% at 0931 GMT EScv1. Futures for the tech-heavy Nasdaq were down 2.1%% NQc1.

The MSCI world equity index, which tracks shares in 49 countries, was down 0.2% .MIWD00000PUS.

Trump’s exposure could cause a new wave of market volatility as investors braced for the presidential election in November.

How long the risk-averse moves will last depends on the extent of the infection within the White House, said Francois Savary, chief investment officer at Swiss wealth manager Prime Partners.

“We may have to wait until the end of the weekend for more clarity on the situation,” he said. “The reaction has been a bit excessive with U.S. stock futures. It doesn’t mean the U.S. administration is not able to function.”

“It will weigh on

WASHINGTON (AP) — The U.S. economy plunged at an unprecedented rate this spring and even with a record rebound expected in the just-ended third quarter, the U.S. economy will likely shrink this year, the first time that has happened since the Great Recession.

The gross domestic product, the economy’s total output of goods and services, fell at a rate of 31.4% in the April-June quarter, only slightly changed from the 31.7% drop estimated one month ago, the Commerce Department reported Wednesday.

The government’s last look at the second quarter showed a decline that was more than three times larger than the fall of 10% in the first quarter of 1958 when Dwight Eisenhower was president, which had been the largest decline in U.S. history.


Economists believe the economy will expand at an annual rate of 30% in the current quarter as businesses have re-opened and millions of people have gone back to work. That would shatter the old record for a quarterly GDP increase, a 16.7% surge in the first quarter of 1950 when Harry Truman was president.

The government will not release its July-September GDP report until Oct. 29, just five days before the presidential election.

While President Donald Trump is counting on an economic rebound to convince voters to give him a second term, economists said any such bounce back this year is a longshot.

Economists are forecasting that growth will slow significantly in the final three months of this year to a rate of around 4% and the U.S. could actually topple back into a recession if Congress fails to pass another stimulus measure or if there is a resurgence of COVID-19. There are upticks in infections occurring right now in some regions of the country, including New York.

“There are a lot of potential pitfalls out