Oil tumbles as much as 10%, breaks below $100 as recession fears mount. Oil prices tumbled Tuesday with the U.S. benchmark falling below $100 as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products. West Texas Intermediate crude, the U.S. oil benchmark, settled 8.24% lower at $99.50 per barrel. At one point WTI slid more than 10%, trading as low as $97.43 per barrel. The contract last traded under $100 on May 11. International benchmark Brent crude settled 9.45% hilower at $102.77 per barrel. High commodity prices have been a major contributor to surging inflation, which is at the highest in 40 years. 

Oil tumbles as much as 10%, breaks below $100 as recession fears mount. Oil prices tumbled Tuesday with the U.S. benchmark falling below $100 as recession fears grow, sparking fears that an economic slowdown will cut demand for petroleum products.West Texas Intermediate crude, the U.S. oil benchmark, settled 8.24% lower at $99.50 per barrel. At one point WTI slid more than 10%, trading as low as $97.43 per barrel. The contract last traded under $100 on May 11. International benchmark Brent crude settled 9.45% hilower at $102.77 per barrel. 

Recession fears flare and June jobs report looms as jittery markets head into third quarter. With increased worries about a recession swirling everywhere, Friday’s jobs report and the minutes from the last Fed meeting on Wednesday should be highlights of the week ahead. Economists expect that employers created another 250,000 jobs in June, less than the 390,000 added in May, according to Dow Jones. “I think the market is caught between two narratives,” said one strategist. “I don’t know if it wants good news or bad news. At first, the hot economic news was bad because the Fed could go another 75 basis points and keep going, but now the market wants softer news. But is the landing going to be soft or hard? It’s like threading the needle right now.”Strategists say the market will also focus

Oil prices bounced off session lows to trade nearly flat in a volatile session on Monday, after Saudi energy minister said OPEC+ could cut production to confront market challenges. Brent crude futures for October settlement fell 0.5%, to $96.28 a barrel. It had fallen as much as 4.5% earlier in the day, breaking a streak of three days of gains. Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ has the commitment, the flexibility, and the means to deal with challenges and provide guidance including cutting production at any time and in different forms, state news agency SPA reported. Earlier in the session, worries that aggressive U.S. interest rate hikes may lead to a global economic slowdown and dent fuel demand had pushed down price.“The near term fundamentals seem more to the

Stocks slide to close worst first half in 52 years: S&P 500 plunges 20.6% YTD, 8.4% in June. US stocks fell on Thursday, with the major averages logging steep declines for the month of June, second quarter and first half of 2022 as concerns over heightened inflation and the prospects of a recession weighed heavily on risk assets. Equities have been hit hard for months now as investors have weighed persistently hot inflation against risks of an economic downturn, as the Federal Reserve responds to inflation with faster tightening. Powell earlier in June suggested either a 50 or 75 basis point interest rate hike would most likely be on the table following the Fed's July meeting. And in the weeks since, a number of other key central bank officials have affirmed that the latter will probab

Oil pares losses after Saudi oilmin says OPEC+ has options including cuts. Oil prices bounced off session lows to trade nearly flat in a volatile session on Monday, after Saudi energy minister said OPEC+ could cut production to confront market challenges.Brent crude futures for October settlement fell 0.5%, to $96.28 a barrel. It had fallen as much as 4.5% earlier in the day, breaking a streak of three days of gains.Saudi Energy Minister Prince Abdulaziz bin Salman said OPEC+ has the commitment, the flexibility, and the means to deal with challenges and provide guidance including cutting production at any time and in different forms, state news agency SPA reported.Earlier in the session, worries that aggressive U.S. interest rate hikes may lead to a global economic slowdown and d

Oil settles lower ahead of potential large U.S. rate hike. Oil prices settled lower on Thursday, but pared nearly all losses after falling more than $4 earlier in the session as investors focused on the prospect of a large U.S. rate hike later this month that could stem inflation but at the same time hit oil demand.Brent crude futures for September settled down 0.5% and finished a third session in a row below $100.U.S. West Texas Intermediate crude for August delivery also settled down 0.5%.Both contracts hit lows on Thursday which were below the Feb. 23 close, the day before Russia invaded Ukraine, with Brent reaching its lowest level since Feb. 21.The U.S. Federal Reserve is seen ramping up its battle with 40-year high inflation with a supersized 100 basis-point rate hike this month afte

Oil Price Prediction – Oil Falls Below $100 Amid Recession Fears. The sell-off in the oil markets continue.Traders fear that a potential recession will crush demand for oil. Tomorrow, the EIA report will show whether U.S. domestic oil production continues to increase.WTI oil declined below the $100 level amid worries about a potential global recession. Meanwhile, copper, which is also sensitive to the economic outlook, has also slipped to new lows.The potential recession has been the main topic for commodity markets in recent trading sessions. High inflation puts significant pressure on economies, and it remains to be seen whether demand for oil will be strong enough to support the recent $100 – $120 range.There’s also another bearish catalyst in play. Coronavirus. China continues to battl

Time is ripe to snap up bargains, says debt investor Howard Marks. The time is right to snap up “bargains” in the financial markets following the widespread sell-off, according to Howard Marks, one of the world’s most formidable distressed debt investors. “Today I am starting to behave aggressively,” the founder and co-chair of Oaktree Capital, said in an interview. The main gauge used to measure junk US corporate debt has registered a loss of just under 13 per cent this year, its largest since the financial crisis in 2008, according to Ice Data Services. Financial markets have sold off as the Federal Reserve has begun to sharply raise interest rates, piling pressure on treasurers across the globe. Borrowing costs have shot higher, with yields on highly rated corporate debt in the US avera

Biden opens the possibility of more offshore oil drilling in the Gulf of Mexico. The Biden administration released a five-year plan on Friday that would block all new offshore oil drilling in the Atlantic and Pacific oceans, while allowing some drilling in the Gulf of Mexico and the south coast of Alaska.The proposed plan, which has not been finalized, could allow up to 11 lease sales over the next five years. As U.S. energy prices rise, the fossil fuel sector has urged the administration to increase offshore drilling in an effort to lower gas prices at the pump. But climate groups have argued that new lease sales would exacerbate climate change while doing nothing to bring down prices.Environmental groups on Friday condemned the administration for proposing limited new lease sal

Nasdaq loses nearly 4%, hits fresh low for 2022. U.S. stocks fell sharply on Tuesday as investors dumped equities on fears of an economic slowdown. The tech-heavy Nasdaq Composite dropped almost 4% and hit a fresh 52-week low. The index retreated further into bear market territory, sitting now about 23% off its high. The DJIA shed near 2.5% and the S&P 500 lost nearly 3%. The strength in Big Tech stocks in recent years is likely to burst when fundamentals start to meaningfully deteriorate as the overall economy slows. Investors are worried about a Covid surge in China and the war in Ukraine. And is further aggravated by sky high inflation in the U.S, the highest in 40-year

JPMorgan suspends buybacks, warns on global economy as profit slumps. JPMorgan Chase & Co's Jamie Dimon struck a cautious note on the global economy as America's largest bank reported a worse-than-expected 28% fall in quarterly profit and suspended share buybacks in the face of growing risks of a recession.The chief executive also stressed the need to build capital reserves due to increasing requirements from regulators, while flagging a number of concerns including the war in Ukraine, high inflation and the "never-before-seen" quantitative tightening as threats to global economic growth. JPMorgan's shares slid nearly 5% as the bank recorded $1.1 billion in provision for credit losses, including a $428 million boost in loss provisions. Last year, the bank had released $3 billion f

Macau Casino Stocks Soar As China Readies To Open Up Travel. Casino stocks spiked Monday as Macau city officials signaled China is set to ease Covid-era travel restrictions, making it much easier for people to return to globe's largest gambling hub. Macau leaders have indicated that China would resume an e-visa program for mainland-China travelers and group tours, with plans to implement the relaxed travel requirements in November. This sent casino stocks with Macau exposure rocketing in Monday's market trading. Wynn Resorts was up 12% and Las Vegas Sands increased 11.7%, easily Monday's top two performers on the S&P 500 index. Melco Resorts & Entertainment skyrocketed 25.5%. Macau, a Chinese special administrative region, is the only place in the country where citizens can legally

From $25 billion to $167 million: How a major crypto lender collapsed and dragged many investors down with it. Celsius is down to $167 million “in cash on hand,” which they say will provide “ample liquidity” to support operations during the restructuring process. Celsius owes its users around $4.7 billion, according to its bankruptcy filing — and there’s an approximate $1.2 billion hole in its balance sheet. The fall of Celsius marks the third major bankruptcy in the crypto ecosystem in two weeks, and it is being billed as crypto’s Lehman Brothers moment — comparing the contagion effect of a failed crypto lender to the fall of a major Wall Street bank that ultimately foretold the 2008 mortgage debt and financial crisis. Regardless of whether the Celsius implosion portends a larger collapse

Ray Dalio’s Bridgewater predicts another 20% to 25% drop for the markets. The Fed’s aggressive rate hikes have cast a giant shadow over the stock market. Among the experts who are sounding the alarm is Ray Dalio, founder of the world’s largest hedge fund Bridgewater Associates.Dalio warns that Fed’s tightening could lead to stagflation – an economic condition marked by high inflation, but without the robust economic growth and employment that usually come with it. “Over the long run the Fed will most likely chart a middle course that will take the form of stagflation.” And recently, Bridgewater’s co-chief investment officer Greg Jensen told Bloomberg that the Fed’s hawkish stance still hasn’t been fully priced in.“In aggregate, let's say asset markets decline at something like 20% to 25%,”

Fed Chairman Jerome Powell on Thursday said the central bank is committed to raising rates “expeditiously” to bring down inflation. That could mean an interest rate hike of 50 basis points in May as prices rise at their fastest pace in more than 40 years. Traders also priced in an additional hike equivalent through year’s end that would take the fed funds rate, which sets the overnight borrowing level for banks but also is tied to many consumer debt instruments, to 2.75%.

Stock futures are up as investors await inflation data. Stock futures are rising slightly Wednesday as investors look ahead to inflation data and earnings in the coming days that may provide insight into the future health of the economy. Futures for the Dow Jones Industrial Average were up 0.16%. Nasdaq 100 futures added 0.15%, while futures tied to the S&P 500 increased 0.18%. The action follows a day of small ups and downs for the market as investors digested minutes from the September Federal Reserve meeting. The minutes showed the central bank expected to keep hiking interest rates until it sees receding inflation. But one comment made some think the Fed might instead slow the rate hikes, if not roll them back, if financial markets tumult continued. The S&P 500 fell 0.33%

Fed Chairman Jerome Powell on Thursday said the central bank is committed to raising rates “expeditiously” to bring down inflation. That could mean an interest rate hike of 50 basis points in May as prices rise at their fastest pace in more than 40 years. Traders also priced in an additional hike equivalent through year’s end that would take the fed funds rate, which sets the overnight borrowing level for banks but also is tied to many consumer debt instruments, to 2.75%.

Allianz Chief Economic Adviser El-Erian believes core inflation ‘is still going up’Allianz Chief Economic Adviser Mohamed El-Erian said he predicts headline inflation “will probably come down to about 8%,” but that core inflation “is still going up.” El-Erian said an increase in core inflation means “we still have an inflation issue.”Ahead of the release of the latest consumer price index reading this week, Allianz Chief Economic Adviser Mohamed El-Erian told CBS’ “Face The Nation” Sunday that he predicts headline inflation “will probably come down to about 8%,” but that core inflation “is still going up.”Even if core inflation is still on the rise, however, El-Erian said it will eventually come down. “The question is, does it come down with a slowdown in the economy or a major recession?”

From $25 billion to $167 million: How a major crypto lender collapsed and dragged many investors down with it. Celsius is down to $167 million “in cash on hand,” which they say will provide “ample liquidity” to support operations during the restructuring process.Celsius owes its users around $4.7 billion, according to its bankruptcy filing — and there’s an approximate $1.2 billion hole in its balance sheet.The fall of Celsius marks the third major bankruptcy in the crypto ecosystem in two weeks, and it is being billed as crypto’s Lehman Brothers moment — comparing the contagion effect of a failed crypto lender to the fall of a major Wall Street bank that ultimately foretold the 2008 mortgage debt and financial crisis.Regardless of whether the Celsius implosion portends a larger collapse of