2025-06-06 20:40

June 6 (Reuters) - U.S. energy firms this week cut the number of oil and natural gas rigs operating for a sixth week in a row for the first time since September 2023, energy services firm Baker Hughes (BKR.O) , opens new tab said in its closely followed report on Friday. The oil and gas rig count, an early indicator of future output, fell by four to 559 in the week to June 6, the lowest since November 2021. , , Sign up here. Oil rigs fell by nine to 442 this week, while gas rigs rose by five to 114, Baker Hughes said. It said it has corrected oil and gas classifications for approximately eight to 10 rigs in the Marcellus and Utica basins, since April 4. Total reported rig counts for all historical periods remain unchanged. Total rig counts in the Permian in West Texas and eastern New Mexico, the Eagle Ford in South Texas and in the state of Texas all fell this week to their lowest levels since November 2021. In Utah, meanwhile, the rig count fell this week to its lowest since February 2022. The oil and gas rig count declined by about 5% in 2024 and 20% in 2023 as lower U.S. oil and gas prices over the past couple of years prompted energy firms to focus more on boosting shareholder returns and paying down debt rather than increasing output. The independent exploration and production (E&P) companies tracked by U.S. financial services firm TD Cowen said they planned to cut capital expenditures by around 3% in 2025 from levels seen in 2024. That compares with roughly flat year-over-year spending in 2024, and increases of 27% in 2023, 40% in 2022 and 4% in 2021. Even though analysts forecast U.S. spot crude prices would decline for a third year in a row in 2025, the U.S. Energy Information Administration (EIA) projected crude output would rise from a record 13.2 million barrels per day (bpd) in 2024 to around 13.4 million bpd in 2025. On the gas side, the EIA projected an 88% increase in spot gas prices in 2025 would prompt producers to boost drilling activity this year after a 14% price drop in 2024 caused several energy firms to cut output for the first time since the COVID-19 pandemic reduced demand for the fuel in 2020. The EIA projected gas output would rise to 104.9 billion cubic feet per day (bcfd) in 2025, up from 103.2 bcfd in 2024 and a record 103.6 bcfd in 2023. https://www.reuters.com/business/energy/us-oilgas-rig-count-falls-6th-week-2021-lows-baker-hughes-says-2025-06-06/

2025-06-06 20:33

ORLANDO, Florida, June 6 (Reuters) - For all that the uncertainty around Washington's global tariff war and worrisome U.S. fiscal outlook continue to unnerve investors, not to mention the Trump-Musk public mud-slinging circus, world markets just closed out a quietly impressive week. Broad U.S., Asian, European and emerging market equity benchmarks all rose, pushing the MSCI World index to a fresh record high, while the dollar, Treasury yields and gold generally held steady over the week. Sign up here. Of course, these broad sweeps mask some notable price moves in certain assets, such as Tesla's 14% share price crash on Thursday, Treasury yields spiking up to 15 basis points on Friday after the latest nonfarm payrolls data, or the dollar sliding to within touching distance of a new three-year low on Thursday. Investors appear to be in a forgiving mood, willing to trust that policymakers will dial down global trade tensions, slow the U.S. fiscal train as it approaches the cliff edge, and steer the world economy through these choppy waters with minimum damage. Investors faced several key monetary policy crosswinds this week. The Bank of Canada stood pat and the European Central Bank cut rates by a quarter of a percentage point, but their guidance was seen as relatively hawkish. The Canadian dollar and euro both strengthened. On the other hand, Switzerland's slide into deflation ups the ante on the Swiss National Bank and traders are betting on a return to negative interest rates by the end of the year. Meanwhile, the Reserve Bank of India on Friday cut rates by more than expected. Fed officials mostly continue to hold the line that uncertainty around tariffs and their impact on growth and inflation is so high that the central bank is firmly in the 'wait and see' camp. If the Fed is to resume its easing cycle, it won't be until October, according to rates futures market pricing. With global central banks perhaps entering a summer pause, focus will intensify on the Trump administration's trade deal negotiations with major trading partners like China and Europe ahead of July 9, when Washington's pause on reciprocal tariffs expires. U.S. President Donald Trump indicated that his 90-minute telephone call with China's Xi Jinping on Thursday was friendly, and there were lots of smiles in his meeting later that day in the Oval Office with German Chancellor Friedrich Merz. But ultimately, the call with Xi yielded nothing concrete, although U.S.-China talks will take place in London next week. And it is through the 27-nation European Union that any deal with Germany will be reached, not bilaterally. There are so many moving parts on Washington's tariff board, including but not restricted to: sector tariffs, reciprocal tariffs, bilateral negotiations with dozens of countries, and court rulings and counter rulings. It's a little surprising, perhaps, that investors' glass is half full. I'd love to hear from you, so please reach out to me with comments at [email protected] , opens new tab. You can also follow me at @ReutersJamie and @reutersjamie.bsky.social. This Week's Key Market Moves Chart of the Week Again, two charts for you this week, both on tariffs. The first shows how much tariff-related turmoil the S&P 500 has navigated since Trump was sworn in. In many ways, it's remarkable that the index is up on the year. The second is based on a New York Fed survey published this week showing how U.S. firms are passing on price increases to customers. Most strikingly, almost half of services companies are passing on 100% of the tariffs. Here are some of the best things I read this week: What could move markets on Monday? Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. Trading Day is also sent by email every weekday morning. Think your friend or colleague should know about us? Forward this newsletter to them. They can also sign up here. https://www.reuters.com/business/autos-transportation/global-markets-trading-day-2025-06-06/

2025-06-06 20:28

Nuclear equipment suppliers include Emerson, Westinghouse Suspensions come amid two-week blitz of restrictions on exports to China Shipments of hydraulic fluid, jet engines among broad swathe of items affected Restrictions imposed during tense U.S.-China trade war June 6 (Reuters) - The U.S. in recent days suspended licenses for nuclear equipment suppliers to sell to China's power plants, according to four people familiar with the matter, as the two countries engage in a damaging trade war. The suspensions were sent to companies by the U.S. Department of Commerce, the people said, and affect export licenses for parts and equipment used with nuclear power plants. Sign up here. Nuclear equipment suppliers are among a wide range of companies whose sales have been restricted over the past two weeks as the U.S.-China trade war shifted from negotiating tariffs to throttling each other's supply chains. It is unclear whether a Thursday call between U.S. President Donald Trump and Chinese President Xi Jinping would affect the suspensions. The U.S. and China agreed on May 12 to roll back triple digit, tit-for-tat tariffs for 90 days, but the truce between the two biggest economies quickly went south, with the U.S. claiming China reneged on terms related to rare earth elements, and China accusing the U.S. of "abusing export control measures" by warning that using Huawei Ascend AI chips anywhere in the world violated U.S. export controls. On Friday, Trump said U.S. and Chinese officials would meet again on June 9. The U.S. Department of Commerce did not respond to a request for comment on the nuclear equipment restrictions. On May 28, a spokesperson said the department was reviewing exports of strategic significance to China. "In some cases, Commerce has suspended existing export licenses or imposed additional license requirements while the review is pending," the spokesperson said in a statement. U.S. nuclear equipment suppliers include Westinghouse and Emerson (EMR.N) , opens new tab. Westinghouse, whose technology is used in over 400 nuclear reactors around the world, and Emerson, which provides measurement and other tools for the nuclear industry, did not respond to requests for comment. The suspensions affect business worth hundreds of millions of dollars, two of the sources said. A spokesperson for the Chinese Embassy in Washington said Xi emphasized on his call with Trump that both sides should make good on the agreement reached in Geneva on May 12. China has been "earnestly" executing the agreement, the spokesperson, Liu Pengyu, said in a statement on Friday. “The U.S. side should acknowledge the progress already made, and remove the negative measures taken against China,” the statement said. China’s rare earth export controls are in line with common practice and not targeted at specific countries, it added. They also coincide with Chinese restrictions on critical metals threatening supply chains for manufacturers worldwide, especially America's Big Three automakers. China has granted temporary export licenses to rare-earth suppliers for the U.S. automakers, Reuters reported on Friday. Reuters could not determine whether the new restrictions were tied to the trade war, or if and how quickly they might be reinstated. Department of Commerce export licenses typically run for four years and include authorized quantities and values. But many new restrictions on exports to China have been imposed in the last two weeks, according to sources, and include license requirements for a hydraulic fluids supplier for sales to China. Other license suspensions went to GE Aerospace for jet engines for China's COMAC aircraft, sources said. The U.S. also now requires licenses to ship ethane to China, as Reuters reported first last week. Houston-based Enterprise Product Partners (EPD.N) , opens new tab said Wednesday that its emergency requests to complete three proposed cargoes of ethane to China, totaling some 2.2 million barrels, had not been granted. Enterprise said a May 23 requirement for a license to sell butane to China, in addition to the ethane, was subsequently withdrawn. Dallas-based Energy Transfer said it was notified on Tuesday about the new ethane licensing requirement, and planned to apply and file for an emergency authorization. Other sectors that have been hit with new restrictions include companies that sell electronic design automation software such as Cadence Design Systems (CDNS.O) , opens new tab. https://www.reuters.com/business/aerospace-defense/us-suspends-licenses-ship-nuclear-plant-parts-china-sources-say-2025-06-06/

2025-06-06 20:26

Indexes up: Dow 1.05%, S&P 500 1.03%, Nasdaq 1.20% Non-farm payrolls increased by 139,000 jobs in May US officials to meet Chinese officials on trade June 9 Tesla bounces after massive plunge on Thursday Lululemon sinks on lowering annual profit forecast NEW YORK, June 6 (Reuters) - U.S. stocks closed higher on Friday after a better-than-expected jobs report calmed worries about the economy, while Tesla bounced, clawing back some losses from a sharp plunge the previous session. The S&P 500 closed above 6,000 for the first time since Feb. 21, fueled by gains in technology shares. Investors cheered news citing President Donald Trump as saying three cabinet officials will meet representatives of China in London on June 9 to discuss a trade deal. Sign up here. "The market will chase the trade deal carrot any time it's available. The trick is whether any actual deal gets done," said Jamie Cox, managing partner at Harris Financial Group. On Thursday, Trump and Chinese leader Xi Jinping spoke, after weeks of trade tensions and a battle over critical minerals. They left key issues unresolved for future talks. In early trading, U.S. data showed nonfarm payrolls increased by 139,000 jobs last month after rising by a downwardly revised 147,000 in April. Economists polled by Reuters had forecast payrolls advancing by 130,000 jobs. The unemployment rate stood at 4.2%, in line with expectations. Following the report, traders bet that Federal Reserve policymakers have little reason to rush on rate cuts. They are seen waiting until September to cut rates, with just one more cut in view by December, based on interest rate futures. Central bank policymakers meet later this month. "We expect the Fed to remain on hold at this month's meeting and think a softening in the labor market data is likely required for the Fed to continue its easing cycle," said Lindsay Rosner, head of multi-sector fixed income investing at Goldman Sachs Asset Management. Weaker-than-expected private payrolls numbers and surveys on the services sector this week had raised concerns that trade uncertainty could slow the economy. U.S. equities rallied in May, with the S&P 500 index (.SPX) , opens new tab and the tech-heavy Nasdaq (.IXIC) , opens new tab scoring their biggest monthly percentage gains since November 2023, thanks to softening of Trump's harsh trade stance and upbeat earnings reports. On Friday, the S&P 500 hit its highest in over three months, and remained below record highs touched in February by a little more than 2%. The Dow index also rose to a three-month high. The Dow Jones Industrial Average (.DJI) , opens new tab rose 442.88 points, or 1.05%, to 42,762.62, the S&P 500 (.SPX) , opens new tab gained 61.02 points, or 1.03%, to 6,000.32 and the Nasdaq Composite (.IXIC) , opens new tab gained 231.50 points, or 1.20%, to 19,529.95. The S&P gained 1.5% for the week, the Dow 1.17% and Nasdaq 2.18%. Shares of Tesla (TSLA.O) , opens new tab rose 3.8% after plunging about 15% on Thursday during Trump's public feud with Musk, including threats to cut off government contracts with Musk's companies. Other megacap companies also rose. Amazon (AMZN.O) , opens new tab was up 2.7% and Alphabet (GOOGL.O) , opens new tab gained 3.25%. Wells Fargo (WFC.N) , opens new tab rose 1.9% as ratings firm S&P Global upgraded its outlook on Wells Fargo to "positive" from "stable." Earlier this week, the U.S. bank was released from a $1.95 trillion asset cap. Broadcom (AVGO.O) , opens new tab shares fell 5% after the networking and custom AI chipmaker's quarterly revenue forecast failed to impress investors. Lululemon (LULU.O) , opens new tab shares slumped 19.8% as the sportswear maker cut its annual profit target, citing higher costs from Trump's tariffs. Advancing issues outnumbered decliners by a 2.14-to-1 ratio on the NYSE. There were 173 new highs and 34 new lows on the NYSE. On the Nasdaq, advancing issues outnumbered decliners by a 2.52-to-1 ratio. The S&P 500 posted 20 new 52-week highs and no new lows while the Nasdaq Composite recorded 86 new highs and 38 new lows. Volume on U.S. exchanges was relatively light, with 14.5 billion shares traded, compared to an average of 17.8 billion shares over the previous 20 sessions. https://www.reuters.com/business/autos-transportation/wall-street-futures-edge-up-ahead-jobs-data-tesla-rebounds-2025-06-06/

2025-06-06 20:21

Bessent, Lutnick, Greer to represent US in London talks Trump-Xi spoke amid trade tensions and mineral disputes Earlier 90-day deal eased tariffs, boosted stock markets WASHINGTON, June 7 (Reuters) - Three of U.S. President Donald Trump's top aides will meet with their Chinese counterparts in London on Monday for talks aimed at resolving a trade dispute between the world's two largest economies that has kept global markets on edge. U.S. Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent the United States in the talks, Trump announced in a post on his Truth Social platform without providing further details. Sign up here. China's foreign ministry said on Saturday that vice premier He Lifeng will be in the United Kingdom between June 8 and June 13, adding that the first meeting of the China-U.S. economic and trade consultation mechanism would be held during this visit. "The meeting should go very well," Trump wrote. Trump spoke to Chinese President Xi Jinping on Thursday in a rare leader-to-leader call amid weeks of brewing trade tensions and a dispute over critical minerals. Trump and Xi agreed to visit one another and asked their staffs to hold talks in the meantime. Both countries are under pressure to relieve tensions, with the global economy under pressure over Chinese control over the rare earth mineral exports of which it is the dominant producer and investors more broadly anxious about Trump's wider effort to impose tariffs on goods from most U.S. trading partners. China, meanwhile, has seen its own supply of key U.S. imports like chip-design software and nuclear plant parts curtailed. The countries struck a 90-day deal on May 12 in Geneva to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump returned to the presidency in January. That preliminary deal sparked a global relief rally in stock markets, and U.S. indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 (.SPX) , opens new tab stock index, which at its lowest point in early April was down nearly 18% after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2% below its record high from mid-February. The final third of that rally followed the U.S.-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and U.S. complaints about China's state-dominated, export-driven economic model. Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. China sees mineral exports as a source of leverage. Halting those exports could put domestic political pressure on the Republican U.S. president if economic growth sags because companies cannot make mineral-powered products. In recent years, U.S. officials have identified China as its top geopolitical rival and the only country in the world able to challenge the United States economically and militarily. https://www.reuters.com/world/china/us-china-hold-trade-talks-june-9-london-trump-says-2025-06-06/

2025-06-06 20:06

Surge in crypto IPOs signals rising investor confidence, analysts say Global crypto market valued at around $3.3 trillion, data shows Circle's strong NYSE debut highlights renewed market momentum June 6 (Reuters) - Gemini, a crypto exchange run by billionaire twins Tyler and Cameron Winklevoss, on Friday disclosed it had confidentially filed for a U.S. initial public offering, as digital asset firms seize on renewed market momentum. Several high-profile companies, including those in high-risk sectors such as crypto and financial technology, have launched successful listings in recent weeks, reflecting pent-up demand and renewed vigor in the capital markets. Sign up here. Earlier this week, stablecoin issuer Circle (CRCL.N) , opens new tab went public in a blowout debut on the New York Stock Exchange. "Pre-IPO crypto companies would be crazy not to move ahead with listings after seeing how Circle traded," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs. "Crypto can be an unpredictable market, so when you get a chance like this, you take it." The surge in cryptocurrency IPOs signals a turning point for the industry, reflecting growing confidence among digital asset firms to attract mainstream investors and bringing increased transparency, regulatory scrutiny and capital that could help solidify crypto's place in traditional financial markets. Gemini, which operates a trading platform enabling investors to buy, sell and store more than 70 crypto tokens, said it has not yet determined the size or proposed price range for its offering. "Gemini's move contributes to the broader momentum and reinforces the idea that crypto-native firms are increasingly preparing to access public markets," said Kat Liu, vice president at IPOX. "More broadly, this signals that long-anticipated firms are now ready to reengage with public capital," Liu added, noting that investor appetite is returning, especially for companies with well-defined business models in strategic sectors such as fintech, AI and digital assets. The Winklevoss twins shot to fame after they sued Facebook (META.O) , opens new tab and its CEO Mark Zuckerberg, alleging he had stolen their idea for the social networking site. They agreed to a settlement in 2008, in which they received cash and Facebook stock. GROWING MOMENTUM The global cryptocurrency market is currently valued at roughly $3.3 trillion with bitcoin trading firmly above the key $100,000 apiece milestone, according to data from CoinMarketCap. "A successful listing would confirm that the crypto thaw is real," said Michael Ashley Schulman, partner and CIO at Running Point Capital Advisors. "If equity underwriters smell a new fee stream, expect the calendar to unfreeze for everything from fintech to AI chips." The industry, particularly after the approval of spot bitcoin ETFs in the U.S., has attracted billions in inflows from institutional investors seeking exposure to the asset class. In May, Coinbase (COIN.O) , opens new tab became the first U.S. crypto-focused company to join the S&P 500, a watershed moment for the industry. As the crypto sector matures financially and gains regulatory footing, firms are becoming more integrated into traditional markets. This marks a sharp turnaround for an industry that spent more than a decade under intense regulatory scrutiny worldwide. After the collapse of crypto exchange FTX in 2022, many institutional investors retreated from the digital asset market. Prices later recovered, and the sector gained fresh momentum when U.S. President Donald Trump voiced support during his campaign, pledging to be a "crypto president." https://www.reuters.com/business/crypto-firm-gemini-confidentially-files-us-ipo-2025-06-06/