Traders are gearing up for a pickup in volatility following an unusually sleepy stretch for the stock market.
The gap between the S&P 500's daily peak and trough narrowed to 0.62 percentage point in June. That was down from 0.98 percentage point in May, marking the lowest level of intraday volatility within a month since December 2019, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices.
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U.S. Oil Prices Hit Six-Year High After OPEC Standoff
U.S. oil prices rose to six-year highs as an OPEC deadlock raised the prospect of a summer in which crude production fails to keep up with rebounding demand from the crush of drivers hitting the roads.
Futures for West Texas Intermediate, the main grade of U.S. crude, jumped 2.4% from Friday's close to $76.95 a barrel-their highest level since the energy-price crash of late 2014. Brent crude, the benchmark in global energy markets, rose 0.8% to $77.77 a barrel having rallied when the OPEC meeting was called off on Monday.
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In OPEC Deadlock, U.A.E. Steps Out of Saudi Shadow
OPEC failed in its third attempt to resolve a deadlock over oil production after divisions between allies Saudi Arabia and the United Arab Emirates spilled into public and into global financial markets.
The group called off a meeting scheduled for Monday with Russia-led oil producers after the U.A.E.-typically one of Riyadh's most dependable supporters in the group-refused to agree to a Saudi-backed deal to boost output, according to people familiar with the matter. The deal, tentatively approved by the rest of the Organization of the Petroleum Exporting Countries and the Russia-led group, together known as OPEC+, calls for unleashing millions of barrels a day of bottled-up crude to help tame steadily rising oil prices.
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Cash Is Good for Green Energy but a Grid Authority Is Better
Power grids seem an obvious way to ride the renewable energy wave. Cash incentives announced on both sides of the Atlantic will help the companies involved, but the real breakthrough could be the Biden administration's plan for a new grid authority.
While wind farms get the most press, cleaning up electricity will require almost as much investment in the associated networks. Consulting firm BloombergNEF puts the global cost of greening grids at $14 trillion over the next three decades, compared with $15 trillion for power generation.
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Israel's New Government Fails to Extend Law Barring Citizenship for Palestinians
JERUSALEM-Israel's new government lost a parliamentary vote early Tuesday to extend a temporary law that bars citizenship for Palestinians from the occupied West Bank and Gaza who are married to Israelis, an early setback for the fragile ruling coalition.
The vote ended in a tie following a long night of debate, requiring a simple majority for the law to be extended. Fifty-nine lawmakers voted for it and 59 against in the 120-member Knesset.
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Deaths, Hospitalizations Surge as Delta Variant Deals Blow to Poor Countries
SINGAPORE-The fast-spreading Delta variant of the coronavirus is driving up infections in developing countries that are dangerously short on Covid-19 vaccines to battle deadly surges and whose healthcare systems are struggling to cope.
Indonesia, where Covid-19 cases have reached new highs, has reported about 500 deaths a day in the past week-almost triple the daily levels recorded in early June-data from its health ministry shows. Authorities are racing to add hospital beds as medical workers in parts of the country face shortages of ventilators and isolation rooms. Patients are traveling for hours for proper medical care, said the International Federation of Red Cross and Red Crescent Societies, which runs a hospital in West Java province and recently set up emergency tents on-site to accommodate the flow.
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Four More Bodies Found at Site of Miami-Area Condo Collapse
SURFSIDE, Fla.-Search and rescue workers have recovered four more bodies at the site of the collapsed Champlain Towers South condo building, part of which was demolished in a controlled explosion Sunday night, but officials said they remain hopeful that access to crawl spaces in a newly accessible part of the rubble pile could still lead to survivors.
The operation was slowed Monday by high winds and lightning from Tropical Storm Elsa, but the search and rescue team now has access to the entire site. There is more heavy equipment and manpower on the field than at any time since the operation began 12 days ago, said Surfside Mayor Charles Burkett.
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Former Honduran Executive Convicted in Killing of Environmental Activist
A Honduran court convicted the former chairman of a local construction company Monday of ordering the 2016 assassination of Berta Cáceres, an indigenous-rights leader and environmental crusader whose killing shocked the world.
Roberto Castillo Mejía, who at the time of the murder led Desarrollos Energéticos SA, or Desa, was found guilty of masterminding the killing of Ms. Cáceres, an internationally recognized activist who led a yearslong effort to stop the construction of a dam that she said threatened indigenous lands.
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After U.S.'s Bagram Exit, Afghans Face the Taliban Alone
BAGRAM AIRFIELD, Afghanistan-Afghan soldiers returned to their barracks to prepare for dinner last Friday when all the generators suddenly fell silent and the lights on this massive base, the centerpiece of America's war effort in Afghanistan, shut off.
"It just went dark," said Sgt. Ehsanullah, an Afghan soldier stationed there who uses only one name. Once the power went out, the water stopped pumping, too, he and other Afghan soldiers here said. Scores of Afghan civilians entered the facility and looted it, stealing supplies before being turned away.
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Write to sarka.halas@wsj.com
TODAY IN CANADA
Earnings:
Nothing major scheduled
Economic Indicators (ET):
0815 Jun Official International Reserves
Stocks to Watch:
Orosur Shares Soar as It Says Drill Results at Colombian Gold Project Are Spectacular
Shares in Orosur Mining Inc. jumped on Tuesday morning after reporting drill results for its Anza gold project in Colombia.
The mining company posted multiple high-grade gold intersections with associated silver and zinc mineralization.
Orosur highlighted a 59.55-meter intersection grading 9.61 grams of gold per metric ton.
Chief Executive Brad George said the results are spectacular and give the company great comfort that Anza has the potential to be a major gold system.
Other News:
Canadian Businesses Are Optimistic About Recovery, Bank of Canada Survey Finds
Canada's economic recovery is expected to broaden to include more businesses with ties to the hard-hit services sector, as vaccination rates continue to rise and government restrictions are lifted, a Bank of Canada survey found.
The central bank's quarterly survey of business expectations found that overall sentiment improved during the spring to reach the highest level since the bank began measuring that indicator nearly 18 years ago. Investment and hiring plans were widespread, the survey found, and most firms reported that their sales prospects, as measured by indicators such as order books, advance bookings and sales inquiries, had improved compared with a year earlier.
"The number of firms with improved indicators of future sales... is at a record high," the central bank said. It said that was "a concrete signal of a broad-based strengthening in demand relative to a year ago."
The latest survey was conducted in May, at a time when Canada's vaccination campaign was ramping up and many provinces were announcing plans for reopening their economies.
As of July 4, roughly 69% of Canadians had received at least one dose of a Covid-19 vaccine --ahead of the U.S. and U.K.-- and 35% were fully vaccinated.
Market Talk:
Canadian Firms Have Elevated Inflation Expectations
Canadian companies say they believe the inflation threat is real. Bank of Canada's quarterly business-outlook survey, out Monday, indicates that nearly 90% of respondents anticipate annual inflation will be 2% or higher over the next two years, with a third saying CPI could exceed 3%. Firms base their inflation expectations on higher prices for raw materials, supply-chain bottlenecks, and excess government stimulus in the economy. BOC says some attributed their higher CPI forecast to increases in house prices. It adds more than half of firms surveyed expect their interest rates on loans to increase within the next two years.
Expected Major Events for Tuesday
02:00/JPN: Jun Imported Vehicle Sales
06:00/GER: May Manufacturing orders
06:00/GER: May Manufacturing turnover
08:30/UK: Jun CIPS / Markit Construction PMI
08:59/JPN: May Provisional Labour Survey - Earnings, Employment & Hours Worked
09:00/GER: Jul ZEW Indicator of Economic Sentiment
12:15/CAN: Jun Official International Reserves
13:45/US: Jun US Services PMI
14:00/US: Jun ISM Report On Business Services PMI
14:00/US: Jun Employment Trends Index
14:00/US: Jul IBD/TIPP Economic Optimism Index
15:00/US: Jun Global Services PMI
23:50/JPN: Jun International Reserves / Foreign Currency
23:50/JPN: Jun Provisional Trade Statistics for 1st 20 days of Month
All times in GMT. Powered by Kantar Media and Dow Jones.
Expected Earnings for Tuesday
CHS Inc (CHSCP) is expected to report for 3Q.
Computer Services Inc (CSVI) is expected to report for 1Q.
FTI Consulting (FCN) is expected to report $1.60 for 4Q.
Guided Therapeutics Inc (GTHP) is expected to report for 1Q.
Nemaura Medical Inc (NMRD) is expected to report for 4Q.
Pure Cycle Corp (PCYO) is expected to report for 3Q.
SMART Global Holdings Inc (SGH) is expected to report $0.60 for 3Q.
Tel Instrument Electronics Corp (TIKK) is expected to report for 4Q.
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ANALYST RATINGS ACTIONS
(MORE TO FOLLOW) Dow Jones Newswires
07-06-21 0610ET
