Gold was little changed in early trade. The metal faces pressure from the strength of the dollar, given the pair's inverse relationship.
Still, ANZ thinks gold could get some support from worries about the economic outlook, noting that "the [Fed's] aggressive tightening is creating concerns over a looming downturn, which is likely to see safe-haven demand remain elevated for the precious metal."
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Base metal prices edged down in early trading despite more positive economic news coming out of China.
China's service sector expanded in June, with the Caixin China General Services Purchasing Managers Index coming in at 54.5--a reading above 50 indicates expansion.
"Good Caixin PMI prints and positive news about Trump-era tariffs being potentially lifted didn't attract much buying from Asia this morning," Marex said. "We do seem to be stuck in a sell rally environment."
DOW JONES NEWSPLUS
EMEA HEADLINES
SAS Files for Bankruptcy Protection in US to Push Through Restructuring
SAS AB said Tuesday that it has filed for chapter 11 bankruptcy protection in the U.S. as it seeks to push through its comprehensive financial restructuring to cut costs and raise capital under the supervision of the U.S. court system.
Struggling with high debt and a lack of cash, SAS earlier this year launched plans to cut annual costs by 7.5 billion Swedish kronor ($725.2 million), convert around SEK20 billion of debt and hybrid notes into common equity and raise at least SEK9.5 billion in new capital.
Sainsbury Sees FY 2023 in Line With Views; Blathnaid Bergin Appointed New CFO
J Sainsbury PLC said Tuesday that like-for-like sales declined in the first quarter of fiscal 2023, and added that its current commercial and retail finance director, Blathnaid Bergin, has been appointed chief financial officer.
The British grocer's like-for-like sales excluding fuel for the quarter ended June 25 were down 4%, it added, noting that its performance for the quarter as a whole was in line with views.
AstraZeneca to Buy TeneoTwo for Up to $1.27 Bln
AstraZeneca PLC said Tuesday that it is buying TeneoTwo, Inc. for up to $1.27 billion in a deal that strengthens its haematological cancer pipeline.
The pharmaceutical giant said it will make an upfront payment of $100 million upon closing of the deal. A further payment of up to $805 million will be made dependent upon research-and-development milestones being reached and extra payments of up to $360 million could be payable to TeneoTwo shareholders based upon commercial-related milestones.
Guinea Halts Work on Simandou Iron-Ore Project, Source Says
Guinean officials have ordered work be stopped on the Simandou iron-ore project, in which mining giant Rio Tinto PLC has a stake, amid protracted negotiations to agree on a joint venture, a person familiar with the matter said on Tuesday.
Simandou is among the world's largest undeveloped, rich deposits of iron ore--the main ingredient in steel--and has the potential to reshape the global market, which has long been dominated by exports from Australia and Brazil.
Swedish Battery Manufacturer Northvolt Raises $1.1 Bln to Finance Expansion
Swedish battery manufacturer Northvolt AB said Tuesday it has raised $1.1 billion to finance the expansion of its battery-cell and cathode-material production in Europe amid rapidly expanding battery demand.
The capital raise, through a convertible note, means Northvolt has secured close to $8 billion in equity and debt since 2017, it added.
European Travel Just Got Harder After SAS Pilots Strike
LONDON-Pilots at Scandinavia's main airline walked out, starting a strike that the carrier said will hobble operations and add to a growing list of air travel woes on both sides of the Atlantic.
About 1,000 pilots at SAS AB, which has hubs in Denmark, Sweden and Norway, started the strike after talks with management fell through earlier on Monday. SAS said it would scrap about half of all scheduled flights each day of the strike, with cancellations already racking up. The airline warned that the financial fallout from the industrial action could jeopardize the company's survival.
French Industrial Output Stagnates in May
France's industrial production stagnated in May, following three consecutive drops, according to data released Tuesday by the country's statistics agency Insee.
Total industrial output--comprising output in manufacturing, energy and construction--remained unchanged from the previous month. Economists polled by The Wall Street Journal had expected factory output to fall 0.3% on the month.
Ukraine's Allies Talk of Rebuilding as Russia Consolidates Gains in Donbas
Ukraine's President Volodymyr Zelensky said huge investments would be needed to rebuild the country, addressing Western officials in Switzerland as Russian forces continued to press their advance in the east.
Mr. Zelensky spoke during a conference Monday via video-link to discuss a road map for Ukraine's reconstruction, after Russian forces gained control Sunday over the eastern city of Lysychansk.
Macron Removes Minister Accused of Rape, Sexual Assault From French Government
PARIS-French President Emmanuel Macron on Monday pushed out a minister accused of sexual assault and rape as part of a wider government reshuffle aimed at breathing new life into his administration after losing control of the legislature last month.
Paris prosecutors recently opened a probe into Damien Abad, who served as France's minister for the disabled, after receiving a complaint from a woman who accused him of attempted rape. Two other women accused Mr. Abad of rape in 2010 and 2011 in interviews with French news website Mediapart. Mr. Abad has denied any wrongdoing. He said his disability, a condition called arthrogryposis that affects all four of his limbs, made it physically impossible for him to commit the acts he was accused of.
Fresh Scandal Threatens to Tarnish U.K.'s Boris Johnson and Tory Party
LONDON-British Prime Minister Boris Johnson is wrestling with a fresh scandal that threatens to further tarnish his Conservative Party, after a senior lawmaker was suspended for allegedly groping two men.
Last week Conservative lawmaker Chris Pincher quit as deputy chief whip after two men said he made unwanted advances to them at a London club last week.
Seven People Killed in Italian Glacier Avalanche
At least seven people were killed and about 20 were missing following an avalanche of glacial ice in the Italian Alps on Sunday.
Rescue workers continued to search on Monday, though officials said they were unlikely to find survivors.
GLOBAL NEWS
Americans Tap Pandemic Savings to Cope With Inflation
Americans are starting to dip into the huge pile of savings they accumulated over the first two years of the pandemic.
From the start of the pandemic to the end of 2021, U.S. households built up $2.7 trillion in extra savings, according to Moody's Analytics. Covid-19 lockdowns kept people at home with nowhere to spend money, and three rounds of stimulus payments boosted their incomes.
'Doom Loop' Fears Are Putting Italian Banks to the Test
Rising interest rates in Europe are making investors worry about an old ghost haunting Italy's banks: the "doom loop."
The European Central Bank is expected to unveil a special bond buying program later this month to shield highly indebted eurozone economies-and their banks-from rising borrowing costs. The "anti-fragmentation" program is a response to a widening of bond yields in Italy in particular and a punishing selloff in bank stocks in the eurozone's third largest economy.
Australia's RBA Delivers Another Big Rate Increase
SYDNEY-The Reserve Bank of Australia delivered its second consecutive 50-basis-point interest-rate rise at a policy meeting Tuesday, noting that inflation risks remain high and that further action to rein in prices is likely in the coming months.
RBA Gov. Philip Lowe announced a rise in the official cash rate to 1.35% from 0.85%, adding to June's 50-basis-point hike and a 25-basis-point increase in May.
Chinese Vice Premier Liu, Treasury Secretary Yellen Discuss Economic Issues, Xinhua Reports
Chinese Vice Premier Liu He held a video call Tuesday with U.S. Treasury Secretary Janet Yellen and exchanged views on economic issues, state-run Xinhua News Agency reported.
The two discussed matters including the macroeconomic situation and global industrial and supply chains, said Xinhua, characterizing the talks as "constructive."
U.S.-Stock Funds Fell 16.3% in Second-Quarter Rout
Keep repeating to yourself: Don't panic about short-term declines.
Easier said than done this time. Bruising inflation and rising interest rates bowled over markets in the second quarter-and fund investors weren't spared. The average U.S.-stock fund fell 16.3% in the quarter, according to Refinitiv Lipper data. The average fund is down 21.3% for the year to date. Only a handful of stock-fund managers have managed to stay in positive territory (see Winners' Circle).
China Service Sector Activity Rebounded in June
China's Caixin services purchasing managers index, a private gauge, rebounded in June as Covid-19 restrictions were eased in the world's second-largest economy.
The Caixin services PMI rose to 54.5 in June from 41.1 in May, Caixin Media Co. and research company S&P Global said Tuesday. That marked the quickest expansion recorded since July 2021.
Biden Might Soon Ease Chinese Tariffs, in a Decision Fraught With Policy Tensions
WASHINGTON-President Biden is expected to roll back some tariffs on Chinese imports soon, a decision constrained by competing policy aims: addressing inflation and maintaining economic pressure on Beijing.
(MORE TO FOLLOW) Dow Jones Newswires
07-05-22 0618ET
