Oil prices hit a three-month low
Oil prices fell to a three-month low on Tuesday. Several factors can explain this weakening of oil prices: OPEC+ agreed on Sunday to extend most of their oil output cuts into 2025 but left room for voluntary cuts.
Asia-Pacific indices
Positive sentiment is losing momentum. Asia-Pacific indices were mixed overnight, following the lead of the US session on Monday. In Europe, the equity market headed for a negative start on Tuesday.
Retail sales
Retail sales in the UK rebounded in May, according to the BRC, but missed forecasts.
BRC retail sales
BRC retail sales monitor rose 0.4% year-on-year (YoY) on a like-for-like basis, reversing a 4.4% decline in April. Economists had anticipated a 1.2% rise. The British Retail Consortium (BRC) explained a lower-than-expected increase with the past month's poor weather. Non-food sales fell 2.4% YoY in the three months to May, against a growth of 0.7% in May 2023. Barclaycard consumer spending also rose, by 1% YoY. This was the smallest rise since February 2021.
JOLTs
The main event for currency traders: Job Openings and Labor Turnover Survey (JOLTs) job openings, expected to fall further to 8.35 million for the month of April. JOLTs job openings have been on a downward trend for the past two years. As usual, JOLTs data marks the start of a week of US employment indicators. On Wednesday, ADP data should show 180,000 job creations in the US private sector in May. It will be followed on Thursday by initial jobless claims and on Friday by non-farm payrolls. Early expectations are for 180,000 job creations in May. The unemployment rate should remain at 3.9%.
Hewlett-Packard Enterprise
Hewlett Packard Enterprise is expected to show a fall in quarterly earnings and revenue tonight after the US closing bell. The street anticipates earnings of 39 cents per share, compared with the 52 cents reported a year ago. Revenue is forecast to decline by 2.2% to $6.83 billion; this would fall in the upper half of the company's revenue guidance published on February 29, between $6.60 billion and $7 billion.
Oil
Oil prices fell to a three-month low on Tuesday. Several factors can explain this weakening of oil prices: OPEC+ agreed on Sunday to extend most of their oil output cuts into 2025 but left room for voluntary cuts. The eight members currently making voluntary cuts will be able to gradually unwind them from October onward. On Monday, US manufacturing activity slowed for a second straight month, which could translate into weaker oil and fuel demand.
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