Qatar Crashes In Escalating Gulf Crisis; Oil Fails To Rebound As Global Stocks Dip

Monday, June 5, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jun 5, 2017

S&P futures point to a slightly lower open ahead of today’s US non-mfg ISM and Service PMI data. European shares fall, while Asian shares are little changed. Several European countries, including Germany, are closed for Whit Monday leading to subdued trading. Crude futures have reversed overnight gains following the latest unexpected Gulf Crisis overnight, in which Gulf nations cut all diplomatic relations with Qatar amid striking allegations of funding terrorism, as reported overnight.

Looking at other asset classes, the AUD/USD continues grinding higher after a stronger than expected Chinese services PMI and inventories data reduces chances of negative GDP print, iron ore futures +2.0%; GBP/USD fills gap to Friday close, after opening lower in Asia following Saturday’s attacks Bloomberg observes. European equity markets lower from the open, oil-related stocks underperform given heightened political uncertainty. Banco Popular in Spain trades -11% after reports of liquidity pressure due to deposit withdrawals. Core fixed income markets edge lower, German long-end steepens, some focus on wage pressures within PMI data. MXN leads EMFX higher as ruling party is projected to win state election.

European stocks are down, with the Stoxx Europe 600 lower by 0.2% with miners the biggest losers following a downgrade, while zinc and tin led base metals lower. Europe was dragged lower by the Basic Resources index which drops as much as 1.3% to one-month low, making biggest decline of 19 industry groups, after HSBC cuts valuations for London-traded mining companies, downgrades Antofagasta, Kaz Minerals. Antofagasta is biggest decliner in sector, falls 2.8%, Centamin -2%, ArcelorMittal -1.6%, Anglo American -1%. HSBC cuts LSE equities valuations by 4%-9% on assumption of stronger GBP/USD conversion rate, used to convert USD-denominated cash flows to GBP, bank’s analysts write in note Monday.

The Rest…HERE

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