Saturday, 12 Jun 2021

Oil Edges Higher On Bullish Inventory Data

Rupee surges 17 paise to close at 72.60 against US dollar

On Tuesday, the rupee had settled at 72.77.

The rupee strengthened by 17 paise to end at 72.60 (provisional) against the US dollar on Thursday, tracking positive domestic equities.

At the interbank forex market, the local unit opened at 72.75 against the greenback and witnessed an intra-day high of 72.53 and a low of 72.76.

It finally ended at 72.60 against the American currency, registering a rise of 17 paise over its previous close.

On Tuesday, the rupee had settled at 72.77.

Forex market was closed on Wednesday on account of Buddha Purnima.

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, fell 0.02 % to 90.02.

Brent crude futures, the global oil benchmark, fell 0.78 % to USD 68.33 per barrel.

On the domestic equity market front, the BSE Sensex ended 97.70 points or 0.19 % higher at 51,115.22, while the broader NSE Nifty advanced 36.40 points or 0.24 % to 15,337.85.

Foreign institutional investors were net buyers in the capital market on Wednesday as they purchased shares worth Rs 241.60 crore, as per exchange data.

Meanwhile, India’s COVID-19 infection tally climbed to 2,73,69,093 as 2,11,298 more people tested positive for the disease in a day, while the country’s recovery was recorded at 90 %, according to the Union Health Ministry on Thursday.

Gold Shines As Dollar Weakens, Cryptos Whipsaw

Safe haven bids and consecutive rallies pushed Gold to breach $ 1910 an ounce, a level last seen in January 2021, amidst a retreating Dollar and whipsawing Crypto trade. The yellow metal rose 0.38 percent from its previous close and touched $1910 in intra-day trade.

Silver prices too climbed 0.23 percent over previous close to trade at $28.044.

Dollar index and US treasury yields remained subdued at 89.7 and 1.56 percent respectively as diminished inflationary fears appeared to re-ignite risk-on behavior in stock markets world-wide.

Gold’s return to the $ 1900 levels after about four months has been both remarkable and tortuous as the twin pains of inflation and pandemic roiled markets across the globe.

Panic surrounding emergence of highly transmissible strains of the corona virus and increasing geographies with unabated levels of the disease, attracted safe haven bids for the metal in the past two months and changed the course of its downward trajectory that was triggered with the promising vaccine rollout.

The extremely dovish rhetoric by Fed Officials in response to the sudden spike in the key inflationary indicators in the U.S, too contributed to the metal’s slow and arduous progress to the 1900 levels.

Gold’s potential path in the days to come would most likely be influenced by whether it can act as a hedge against inflation, more so if the so called transitory inflation indicators in the U.S. re-appear to goad the Fed into a hawkish posture.

The inflation, growth and jobless claims data due later in the week could provide more cues in this direction.

Watch live: CDC director testifies before House lawmakers on agency's budget

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CDC Director Dr. Rochelle Walensky is testifying before Congress Wednesday on the agency's annual budget as the U.S. battles the Covid-19 pandemic, which has killed nearly 600,000 Americans.

Dr. Anne Schuchat, the Centers for Disease Control and Prevention's deputy director, is also testifying before the House Appropriations Labor, Health and Human Services, Education and Related Agencies subcommittee on Wednesday.

The hearing comes a little over a week after Schuchat announced her retirement from the public health agency after 33 years. It also comes as the agency has taken criticism over its updated guidance on face masks for fully vaccinated Americans.

The CDC announced on May 13 that fully vaccinated people no longer need to wear a face mask or stay 6 feet away from others in most settings, whether outdoors or indoors. Unvaccinated people should still continue to wear masks, adding they remain at risk of mild or severe illness, death and risk of spreading the disease to others.

Stock Alert: Anaplan Down 15% After Reporting Wider Q1 Net Loss

Anaplan, Inc. (PLAN) shares are sliding more than 17 percent on Thursday morning trade as the company reported first-quarter net loss that widened from the prior year.

The cloud-native enterprise SaaS company reported first-quarter net loss of $51.49 million or $0.36 per share, wider than net loss of $39.60 million or $0.29 per share last year. On an adjusted basis, net loss was $0.10 per share.

Revenue for the quarter increased 25 percent to $129.83 million from $103.84 million in the previous year.

Looking ahead to the second quarter, the company expects total revenue in a range of $133.5 – $134.5 million.

For the full year, the company expects revenue in a range of $555-$560 million, while its earlier projection was between $550 and $555 million.

Further, Anaplan announced the step down of its Chief Financial Officer David H. Morton, Jr.

Currently, shares are at $48.14, down 15.53 percent from the previous close of $56.99.

Oil Edges Higher On Bullish Inventory Data

Oil prices rose on Wednesday after industry data showed a draw in crude oil inventories, raising hopes for improving U.S. fuel demand ahead of the summer driving season.

Brent crude futures for Aug settlement rose 0.2 percent to $68.63 per barrel, while U.S. crude futures for July delivery were up 0.1 percent at $66.14.

The upside remained capped by worries that a possible return of Iranian supply could cause a glut. Talks between Iran and world powers will continue in Vienna this week to resolve outstanding issues on a nuclear accord.

The American Petroleum Institute (API) on Tuesday reported a draw in crude oil inventories of 439,000 barrels for the week ended May 21, compared with a build of 620,000 million barrels reported for the previous week. Analysts had predicted a draw of 1.050 million barrels for the week.

Gasoline inventories fell by about 1.99 million last week, while distillate stocks slipped by about 5.14 million barrels, the API said.

The official government inventory report from the U.S. Energy Information Administration will be released later in the day.

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