On bitstamp.net, bitcoin was 0.9 per cent higher to $US24,187 near 8.05am AEST.
The yield on the US 10-year note was 11 basis points higher than 2.89 per cent at 4.59pm in New York.
On Wall Street, shares reversed direction late. Health care paced six of the S&P500’s 11 industry sectors lower. The NYSE Fang Index slid 0.6 per cent. The VIX rose 2.2 per cent to 20.18.
Today’s schedule
Local: BusinessNZ manufacturing PMI July
Overseas data: Euro zone June industrial production; UK second quarter preliminary GDP, June industrial production; US July import and export prices, August preliminary University of Michigan consumer sentiment
market highlights
ASX futures down 20 points or 0.29 per cent to 6946 near 7am AEST
- AUD +0.2% to 71.06 US cents
- Bitcoin +0.9% to $US24,187 near 8.05am AEST
- On Wall St: Dow +0.1% S&P500 -0.1% Nasdaq -0.6%
- In New York: BHP +0.8% Rio +1.6% Atlassian -3.6%
- Tesla -2.6% Apple -0.4% Amazon -1.4% Microsoft -0.7%
- In Europe: Stoxx 50 +0.2% FTSE -0.6% CAC +0.3% DAX -0.1%
- Spot gold -0.3% to $US1787.98 an ounce at 2.18pm New York time
- Brent crude +2.5% to $US99.82 a barrel
- Iron ore +2% to $US110.60 a tonne
- 10-year yield: US 2.89% Australia 3.28% Germany 0.97%
- US prices as of 4.59pm in New York
United States
The US producer price index for final demand declined 0.5 per cent last month, the first negative monthly reading since April 2020, the Labor Department said. The PPI climbed 1.0 per cent in June. In the 12 months through July, it increased 9.8 per cent after advancing 11.3 per cent in June.
Economists polled by Reuters had forecast the PPI would rise 0.2 per cent in July and increase 10.4 per cent on a year-on-year basis.
Excluding the volatile food, energy and trade services components, producer prices rose 0.2 per cent in July. The so-called core PPI increased 0.3 per cent in June. In the 12 months through July, the core PPI advanced 5.8 per cent after rising 6.4 per cent in June.
The Federal Reserve is mulling whether to raise its benchmark overnight lending rate by another 50 or 75 basis points at its next policy meeting on Sept. 20-21 in its bid to tame inflation running at more than three times its 2 per cent target.
Europe
The pan-European STOXX 600 index rose 0.1 per cent, after clocking its best session in nearly two weeks on Wednesday.
Oil stocks led gains as crude prices rose by over 1 per cent after the International Energy Agency raised its oil demand growth forecast for the year.
Healthcare shares led losses, dragged by declines in GSK, Sanofi and Haleon amid growing concerns about US litigation focused on a heartburn drug that contained a probable carcinogen.
Miners also fell 0.8 per cent on weak results from Antofagasta. The company’s shares declined 2.2 per cent and dragged peer Rio Tinto down 3.7 per cent.
The STOXX 600 is down about 10 per cent so far this year.
commodities
In its monthly oil report, the IEA struck a bullish tone: “Soaring oil use for power generation and gas-to-oil switching are increasing demand. In this report, we have raised our estimates for 2022 global demand growth by 380,000 barrels a day, to 2.1 million barrels a day.
“Gains mask relative weakness in other sectors, and a slowdown in growth from 5.1 million barrels a day at the start of the year to less than 100,000 barrels a day by 4Q22. World oil demand is now forecast at 99.7 million barrels a day in 2022 and 101.8 mb/d in 2023.”
The IEA said while some new supply could help ease market tensions “with supply increasingly at risk to disruptions, another price rally cannot be excluded”.
In contrast, OPEC cut its 2022 forecast for growth in world oil demand for a third time since April, citing the economic impact of Russia’s invasion of Ukraine, high inflation and efforts to contain the coronavirus pandemic.
In its latest monthly report, OPEC said it expects 2022 oil demand to rise by 3.1 million barrels per day (bpd), or 3.2 per cent, down 260,000 bpd from the previous forecast.