Oil prices were mixed as worries that Hurricane Ida has dealt a significant blow to U.S. oil production in the Gulf of Mexico were balanced by concerns about demand. Brent crude rose 0.4%, while WTI, the U.S. benchmark gauge, edged down 0.3%.
Over 80% of production in the Gulf of Mexico was still shut, more than a week after the storm made landfall, a U.S. regulator said Monday. "The initial impact from Hurricane Ida on U.S. [Gulf of Mexico] production has been greater than any other storm in history," said Helge Andre Martinsen, senior oil analyst at DNB Markets.
Copper and aluminum prices fell in London, as investors awaited speeches from Fed officials throughout the week and the ECB's policy statement on Thursday.
Willem Sels, CIO at HSBC Private Bank, expects metals have hit their peak amid slowing global growth and a rising dollar. "It feels that industrial metals are the odd ones out, taking the bullish, cyclical view a bit too far. Given what is happening to the dollar and in the equity market we feel metals are a bit stretched," he said.
EMEA HEADLINES
Tele2, Deutsche Telekom to Sell T-Mobile Netherlands in $6.1 Bln Deal
Tele2 AB and Deutsche Telekom AG have agreed to sell T-Mobile Netherlands to Apax Partners LLP and Warburg Pincus LLC in a deal valued at 5.1 billion euros ($6.1 billion), they said Tuesday.
The deal will see Tele2 sell its 25% stake in T-Mobile Netherlands while Deutsche Telekom will sell its 75% share to the private-equity consortium, with the enterprise value implying an equity value of around EUR860 million for Tele2's stake.
SoftBank, Deutsche Telekom Form Strategic Partnership
SoftBank Group Corp. said Tuesday that it agreed on a strategic partnership and an equity share swap with Deutsche Telekom AG in a move that would diversify its exposure in Europe.
The Japanese technology and investment company said it would receive 225 million new shares in the German telecom company in exchange for about 45 million T-Mobile US shares it held, and that Deutsche Telekom also intended to acquire another 20 million T-Mobile US shares from SoftBank.
Eurozone Economy Grew More Than Initially Estimated in 2Q
The eurozone economy grew more than initially estimated in the second quarter, according to the final estimate of the European Union's statistics agency.
Across the 19 countries that use the euro as their currency, gross domestic product expanded by 2.2% from the previous quarter, Eurostat said Tuesday as it reported its third estimate for the period. According to the second estimate, the economy had grown by 2.0%.
German ZEW Economic Expectations Fall Again
Economic expectations declined in Germany for the fourth consecutive month, the ZEW economic research institute said Tuesday.
The measure of economic expectations decreased to 26.5 in September from 40.4 in August. The reading missed economists' forecast of 57.5 points taken from a survey by The Wall Street Journal.
German Industrial Production Rose in July, Beating Forecasts
German industrial production increased in July, beating forecasts despite widespread supply shortages, statistics office Destatis said Tuesday.
Total industrial output--comprising production in manufacturing, energy and construction--rose 1.0% in July from June in calendar-adjusted terms. Economists had forecast a 0.7% increase, according to a poll by The Wall Street Journal.
GLOBAL NEWS
China's Exports Strengthen, Despite Covid-19 Disruptions
BEIJING-China's exports unexpectedly expanded at a faster clip in August, shrugging off the impact of a global resurgence of the coronavirus pandemic, port congestion and supply bottlenecks.
China's outbound shipments rose 25.6% in August from a year earlier, higher than the 19.3% increase in July, the General Administration of Customs said Tuesday. The result also comfortably topped the 17% increase expected by economists polled by The Wall Street Journal.
RBA Tapers Bond Buying, But Pushes out Program Review Until 2022
SYDNEY-The Reserve Bank of Australia on Tuesday reduced its weekly government bond purchases but also acknowledged a sharp economic deterioration by pushing out a planned review of its bond-buying program from November to February next year.
RBA Gov. Philip Lowe said the central bank's weekly bond purchases would fall to 4 billion Australian dollars (US$2.98 billion) per week from A$5 billion.
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(END) Dow Jones Newswires
09-07-21 0559ET
