Oil snaps rally; stocks, dollar steady after Fed minutes
Oil prices fell sharply on Wednesday after their longest rally in more than five years while the dollar was higher and Treasury yields were near recent peaks after minutes from the U.S. Federal Reserve's last meeting showed contrasting opinions, APA reports quoting Reuters.
Tumbling oil prices put pressure on the energy sector, which limited gains for Wall Street's S&P 500 benchmark.
Federal Reserve policymakers were split on the outlook for inflation and how it might affect the future pace of interest rate rises, according to the minutes of the Fed's June policy meeting released on Wednesday.
Investors had hoped for insight on the central bank's plans for interest rate hikes or possible balance sheet reduction.
"I see a murky, opaque message," Stephen Massocca, senior vice president at Wedbush Securities in San Francisco, said of the Fed minutes.
Trading was also affected on Wednesday by lighter participation the day after the U.S. July 4 Independence Day holiday and ahead of the U.S. jobs report due on Friday.
The Dow Jones Industrial Average fell 1.58 points, or 0.01 percent, to 21,477.69, the S&P 500 gained 3.11 points, or 0.13 percent, to 2,432.12 and the Nasdaq Composite added 36.37 points, or 0.6 percent, to 6,146.43.
U.S. Treasury yields were near multi-week or multi-month peaks after the minutes.
While he described the Fed headlines as dovish, Aaron Kohli, interest rate strategist at BMO Capital Markets in New York, said the details in the minutes were hawkish.
Benchmark 10-year Treasury notes last rose 6/32 in price to yield 2.3267 percent, from 2.346 percent.
Analysts said yields remained near their recent highs due to the possibility that Friday's U.S. non-farm payrolls report would show a jump in jobs growth in June, which would also push yields higher.
The dollar edged up against a basket of currencies and was last up 0.1 percent. It briefly pared gains after the Fed minutes.
Related news releases
- 20.11.2017SOCAR reduces oil output by 2% in January-October
- 20.11.2017Minister: 94 percent of works on TANAP completed
- 20.11.2017Number of BP’s Azerbaijani national employees declining
- 20.11.2017BP: 98 percent of construction on SCP Expansion is completed
- 20.11.2017South Caucasus Pipeline spends $657M this year
- 20.11.2017BTC spends $120M this year
- 20.11.2017BP: 27 million standard cubic metres of Shah Deniz gas was exported from Sangachal Terminal daily
- 20.11.2017Shah Deniz spends more than $2.6 billion this year
- 20.11.2017Shahdeniz 2 is now over 97 percent complete: BP
- 20.11.2017Volume of AGC production announced
- 17.11.2017Price of gasoline AI-95 and AI-98 increased in Azerbaijan
- 16.11.2017Volume of oil and gas transported via main pipelines announced
- 16.11.2017Azerbaijan exports 38% of its gas reserves
- 16.11.2017Azerbaijan reduces diesel production by 21%
- 16.11.2017SOCAR President: Works on SGC carried out on schedule
- 16.11.2017SOCAR: Petkim quintuples revenues
- 16.11.2017Transneft halts oil transportation from Azerbaijan due to earthquake
- 15.11.2017Three high-ranking officials of Energy Ministry dismissed
- 15.11.2017Ministry: Baku and Ankara implemented a project that Europe could not carry out for years
- 14.11.2017Turkish Minister of Energy and Natural Resources to visit Azerbaijan
- 14.11.2017Azerbaijan increases revenues from gas export
- 14.11.2017Azerbaijan sees 27% growth in revenues from crude oil export
- 14.11.2017SOCAR Petroleum: Current break in sale of AI-98 gasoline to last for a month
- 13.11.2017OPEC member states decrease oil production
- 13.11.2017Working Group on improvement and finalization of 2016 EIT report holds meeting
- 13.11.2017SOCAR might buy oil refinery in Italy
- 13.11.2017Azerbaijan sees 7.2% decline in oil output
- 13.11.2017Azpetrol General Director reveals forecasts on gasoline price
- 13.11.2017Azpetrol comments on quality of fuel
- 13.11.2017General Director: Azpetrol already plans to install facilities designed for charging electric vehicles
- 13.11.2017BTC transported more than 344 million tonnes of oil so far
- 13.11.2017Volume of Azerbaijani oil transported through Ceyhan port announced
- 10.11.2017Azerbaijani president: Extension of ACG will bring tens of billions of dollars in additional investment
- 10.11.2017President Ilham Aliyev attends opening of “Yeni Ganja” substation
- 10.11.2017Petkim pays $11M advance for construction of new administrative building
- 10.11.2017SOCAR transfers AZN 1.3B to state budget
- 10.11.2017Petkim announces investment incomes
- 10.11.2017Petkim doubles profit
- 10.11.2017Volume of transportations through TRACECA announced
- 10.11.2017SOCAR Trading to quit Calgary, move some functions to U.S.
- 06.07.2017Oil slides as OPEC exports rise, prices end eight days of gains
- 06.07.2017Oil to rally 20% before year’s end: UBS analyst
- 06.07.2017Kakha Kaladze: Shahdeniz 2 will allow Georgia to purchase additional gas
- 05.07.2017Representatives of Saudi Arabia’s giant petrochemical corporation to visit Azerbaijan
- 05.07.2017Volume of Azerbaijani oil transported via BTC pipeline announced
- 05.07.2017Volume of Azerbaijani oil transported through Ceyhan port so far announced