Thursday, May 04, 2017

Today's Headlines

  • North Korea Issues Direct Criticism of China Amid Nuke Dispute. (video) North Korea has issued a rare direct criticism of China through a commentary saying its "reckless remarks" on the North's nuclear program are testing its patience and could trigger unspecified "grave" consequences. China, North Korea's largest trading partner and main benefactor, suspended imports of North Korean coal in line with U.N. sanctions and has been urging its traditional ally to stop nuclear and missile activities amid U.S. pressure to use its leverage to resolve the nuclear standoff. The commentary released Wednesday by the state-run Korean Central News Agency said that "a string of absurd and reckless remarks are now heard from China everyday only to render the present bad situation tenser."
  • China H Shares Drop Most in Two Weeks Amid Deleveraging Concerns. (video) Chinese stocks traded in Hong Kong fell the most in two weeks, with an intensifying clampdown on financial leverage and increased regulatory scrutiny taking their toll on the nation’s assets. HSBC Holdings Plc surged after its first-quarter net income beat estimates. The Hang Seng China Enterprises Index slipped 0.8 percent at the close, its largest loss since April 18. China Minsheng Banking Corp. dropped to a 10-month low and commodity producers were among the biggest decliners after metals prices tumbled the most since November. The Shanghai Composite Index fell 0.3 percent to 3,127.37 at the close, its lowest level since Jan. 20.
  • Metals Extend Sell-Off on Mounting China Concerns, Fed Outlook. (video) Copper posted the biggest two-day loss since 2015 as industrial metals plunged amid concern over demand in China and speculation that the Federal Reserve will further raise U.S. interest rates this year. Mining shares also extended losses. Demand concerns are mounting just as copper stockpiles tracked by the London Metal Exchange jumped 25 percent in two days, the most since March, signaling ample supplies. The Bloomberg World Mining Index of equities fell for a fourth day as iron ore tumbled in Dalian and steel plummeted in Shanghai.
  • The World Is Buying American Diesel as Fast as Refiners Can Make It. The international market has a message for American refiners: Stay calm and keep turning crude into diesel. While a global glut has pushed crude prices down to five-month lows, manufacturers of middle distillates can’t make enough to satisfy demand. A combination of seasonal events is giving refiners on both the Atlantic and Gulf coasts a chance to boost exports to Europe and South America.

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