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  • Refiners Stash Gasoline on Ships With Crucial Pipeline Cut Off
    Business
    Bloomberg

    Refiners Stash Gasoline on Ships With Crucial Pipeline Cut Off

    (Bloomberg) -- Refiners on the U.S. Gulf Coast are booking ships to warehouse their growing fuel stockpiles after the shutdown of North America’s biggest petroleum pipeline cut off the nation’s fuel belt from major cities on the East Coast.Valero Energy Corp., Phillips 66 and Marathon Petroleum Corp. have preliminarily rented four non-U.S. flagged ships that can stow almost 3 million barrels of fuels such as gasoline and diesel from 15 to 40 days, according to people familiar with the matter. The largest of the tankers has the capacity to hold 1 million barrels of refined product, they said.The charters come as the outage on the Colonial Pipeline Co. system, which transports about 2.5 million barrels to the East Coast, enters its fourth day. Gas stations from Alabama to Virginia have reported gasoline shortages. Meanwhile, several refiners have rushed to secure ships to store their excess gasoline and diesel production to avoid taking the potentially expensive step of shutting operations until Colonial restarts, according to the people.Before Colonial was attacked by hackers, America’s refiners were ratcheting up their operations to meet an expected spike in demand this summer as newly vaccinated Americans resume major travel. Onshore inventory in the Gulf Coast has already been filling up with their rising fuel production, making the need to find storage after the pipeline hack even more pressing. Filling stations are running dry in the U.S. South as the outage leaves limited options for getting fuel to market.Valero and Phillips 66 didn’t respond to emails seeking comment. “We are leveraging our logistics network and commercial relationships as we work to keep our customers supplied with fuel” as market conditions associated with the Colonial shutdown evolve, Marathon spokesman Jamal Kheiry said in an email.The tankers booked so far include the Energy Centurion, Khawr Aladid, Ayse C and Nave Titan, they said.Some U.S. refiners have begun curtailing operations. Total SE’s Port Arthur refinery in Texas shut its sole FCC over the weekend, while Citgo Petroleum Corp cut rates at its Lake Charles, Louisiana, refinery. Meanwhile, Danish oil product tanker company Torm said four long-range 2 tankers were booked this week to take refined fuels to the U.S. Atlantic Coast from Europe.Colonial has said it expects to substantially restore service by the end of the week. The company manually restored operations on one segment, Line 4, on Monday, while existing inventory was available, and said yesterday additional laterals were operating similarly. Any cargoes sent to the four foreign-flagged tankers would likely be shipped outside the U.S., even after Colonial returns, the people said. The Jones Act requires that only U.S.-flagged ships transport goods from one American port to another.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Stocks, Equity Futures Drop With Taiwan Tumbling: Markets Wrap
    Business
    Bloomberg

    Stocks, Equity Futures Drop With Taiwan Tumbling: Markets Wrap

    (Bloomberg) -- Most Asian stocks fell Wednesday amid concern that faster inflation and the surge in commodities could test the economic recovery from the pandemic.Taiwan’s benchmark posted a record drop of as much as 8.6%, led by steep losses in semiconductors and amid a diplomatic spat with China and further Covid-19 curbs. Stocks fluctuated in Hong Kong and slid in Japan and South Korea, putting the regional gauge on course for its lowest close since January. U.S. contracts slipped after the S&P 500 continued its drop from a record high Friday. Dip buyers helped the tech-heavy Nasdaq 100 erase a loss of almost 2% to finish little changed.Treasury yields were steady and the dollar rose. Investors are awaiting inflation data and government debt sales in the U.S. -- events that could spark market volatility. Consumer-price inflation is set to quicken, with the year-on-year comparison amplified by the shock of Covid-19 shutdowns in 2020.Australia’s 10-year bond yield jumped after the government unveiled a big-spending budget to spur the country’s rebounding economy. The Commonwealth Bank of Australia warned the country could lose its AAA credit rating.Debate continues over whether price pressures will be persistent enough to force the Federal Reserve to tighten policy sooner than current guidance suggests. A chorus of Fed officials said the U.S. economy is on the road to recovery but still faces risks, and reiterated that it’s premature to discuss pulling back monetary support.“It’s all about inflation expectations,” Priya Misra, TD Securities global head of rates strategy, said on Bloomberg Television, adding that if the U.S. CPI report signals “inflation is likely to be higher for a while, I think the taper discussion will come back into the forefront and then we can get a bigger interest rate move.”Oil was steady above $65. The biggest U.S. pipeline is still closed in the wake of a cyberattack, leading to acute fuel shortages in some parts of the nation.Copper traded near a record, and the Bloomberg Commodity Spot Index hovered around the highest levels in almost a decade. Palm oil futures in Kuala Lumpur climbed to the highest intraday level on record. A Chinese commodity exchange raised trading limits and margin requirements as authorities try to temper prices after a scorching rally in industrial commodities.MLIV’s Question of the Day: How Priced In Is a European Reopening?Here are some key events to watch this week:U.S. CPI report Wednesday is forecast to show prices continued to increase in AprilBank of England Governor Andrew Bailey speaks WednesdayThese are some of the main moves in markets:StocksS&P 500 futures fell 0.4% as of 12:35 p.m. in Tokyo. The S&P 500 index fell 0.9%Nasdaq 100 contracts lost 0.5%. The index was little changedJapan’s Topix index shed 1.4%Australia’s S&P/ASX 200 index was down 0.7%South Korea’s Kospi fell 1.6%Hong Kong’s Hang Seng index rose 0.1%China’s Shanghai Composite index was flatEuro Stoxx 50 futures retreated 0.2%CurrenciesThe yen fell 0.2% to 108.83 per dollarThe offshore yuan was at 6.4361 per dollarThe Bloomberg Dollar Spot Index added 0.2%The euro traded 0.2% lower at $1.2126BondsThe yield on 10-year Treasuries was steady around 1.63%Australia’s 10-year bond yield climbed six basis points to 1.78%CommoditiesWest Texas Intermediate crude was at $65.10 a barrelGold fell 0.5% to $1,827.86 an ounceFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Taiwan Stocks Sink as Much as 8.6% on Virus Woes, Tech Rout
    Business
    Bloomberg

    Taiwan Stocks Sink as Much as 8.6% on Virus Woes, Tech Rout

    (Bloomberg) -- Taiwan stocks plunged, putting the benchmark index on course for a technical correction, as concern over further tightening of coronavirus-linked restrictions and a global tech selloff spooked investors.The Taiwan Stock Exchange Weighted Index was in freefall during mid-morning trading, slumped as much as 8.6%, extending losses from an April peak to nearly 13%. The gauge is set for the worst drop since stock-price limits were loosened in 2015, with heavyweight Taiwan Semiconductor Manufacturing Co. and Hon Hai Precision Industry Co. among the biggest drags.The slump marks a sharp turn for the equity gauge which was among Asia’s best performers before it started to retreat at the end of April. Taiwan may elevate its alert level on Covid-19 further today after banning large gatherings Tuesday, Taipei-based Liberty Times reported, citing health minister Chen Shih-chung.“Investor confidence in Taiex has collapsed now due to concerns over Covid-19 after health minister said it’s possible for Taiwan to escalate alert level for Covid-19,” said Paul Cheng, president of MasterLink Securities Investment Advisory. “And there are some concerns over tech shares especially for the second half outlook due to factors including rising manufacturing costs and lower margins.”Local investors have turned increasingly wary as health authorities continue to battle the widening coronavirus outbreak that threatens Taiwan’s status as one of the safest places in the world to ride out the pandemic. Taiwan reported 11 new confirmed Covid-19 cases on Tuesday, following a biggest single-day jump in new cases this year on Monday, according to data compiled by Bloomberg.(Updates throughout)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.