Key Takeaways
- TotalEnergies (TTE) has issued a warning of a potential oil supply glut amidst a weakening global economy.
- Eurozone PMIs for July showed unexpected resilience, with the Composite PMI rising to 51.0, indicating a slight expansion in economic activity.
- EU nations are reportedly backing potential counter-tariffs on €93 billion worth of U.S. goods, signaling escalating trade tensions.
- Geopolitical tensions remain high, with the Kremlin indicating that a meeting between Putin and Zelensky is unlikely before the end of August.
- Japan is set to revise subsidies for electric vehicles, while China's 30-year bond auction offered its highest yield since March.
TotalEnergies (TTE) has voiced concerns over a potential oil supply glut, attributing it to a weakening global economy. This warning comes as global economic indicators present a mixed picture.
In the Eurozone, preliminary Purchasing Managers' Index (PMI) data for July indicated a modest improvement. The Manufacturing PMI rose to 49.8, meeting forecasts, while the Services PMI climbed to 51.2, surpassing expectations of 50.6. Consequently, the Composite PMI for the Eurozone increased to 51.0 from a previous 50.6, exceeding the forecast of 50.7, suggesting a slight expansion in the bloc's economic activity.
Meanwhile, trade relations between the European Union and the United States appear to be intensifying. EU diplomats have indicated that member states support potential counter-tariffs on €93 billion worth of U.S. goods. This move follows reports of an "intense dialogue" between EU Commission President Ursula von der Leyen and Chinese President Xi Jinping regarding improving the use of Emissions Trading Systems and fostering a mutually beneficial relationship.
Geopolitical developments continue to draw attention, particularly concerning the conflict in Ukraine. The Kremlin has stated that it is difficult to envision a meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelensky before the end of August. This comes amid reports of Russian drone attacks on the historic city center of Odesa and the Kremlin's efforts to create buffer zones near the Ukrainian border. The Kremlin also noted that it did not anticipate a breakthrough from recent talks with Ukraine.
In Asia, Japan is planning to revise its subsidies for electric vehicles (EVs), according to Kyodo. This policy adjustment could impact the automotive sector and the broader EV market. Concurrently, China's 30-year bond auction has offered its highest yield since March, reflecting shifts in the country's financial markets.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.