4:50 PM – Stocks on Wall Street gained and market indexes jumped ahead of yet another deadline this Sunday for Greece. Oil price decline is expected to last in 2016 as the U.S. shale oil supply continues to grow but at a slower pace.
Market indexes on Wall Street traded higher as optimism ran high on a deal between European lenders and Greece on Sunday, Chinese stocks rebounded for the second day and investors focused on earnings and deals.
Greece offered a package of reforms and said it has met nearly all conditions required for a bailout loans to be released as early as next week and France praised the latest proposal but Germany withheld its comments.
Inventories in May jumped 0.8% to $581.9 billion from the revised April data and climbed 5% from a year ago.
In April, wholesale sales rose 0.3% to $449.8 billion from the revised April sales but dropped 3.8% from a year ago month, the U.S. Department of Commerce said today.
On Wall Street, Tollbooth Strategy Index gained 0.9% or 90.36 to 10,668.18.
S&P 500 index jumped 1.2% or 23.72 to 2,075.04 and the Nasdaq Composite Index increased 1.4% or 68.58 to 4,989.90.
Oil prices are expected depress further as demand growth slows and supply growth continues, though at a slower pace, according to the latest report from the International Energy Agency based in Paris, France and controlled by the U.S. and Western European nations.
The latest report highlights that the U.S. shale supply in 2015 is growing at one million barrels a day, slower than 1.8 million bpd in 2015. And, the demand has been nearly stable in the year.
Non-OPEC supply is expected to grow at 1 mbpd after surging at 2.4 mbpd rate in 2014.
The report noted world oil demand growth has peaked in the first quarter of 2015 at 1.8 mbpd and the demand growth is expected to ease in the rest of the year.
With that backdrop, the demand for OPEC oil is estimated at 30.3 mbpd, an increase of 1 mbpd from a year ago, but sharply 1.4 mbpd lower than the current OPEC production.
Crude oil in New York fell 57 cents to $52.21 a barrel and gold slid 10 cents to $1,159.10 an ounce.
For the week, the crude oil price declined 7.4%.
Procter & Gamble Co
) rose 31 cents to $80.96 after the consumer packaged goods maker agreed to sell its 43 beauty brands to Coty, Inc. for about $12.5 billion including includes it''s beauty business, global salon professional hair care and color, retail hair color, cosmetics and fine fragrance businesses..
The transaction is expected to close in the second half of 2016.
The seasonally adjusted UK trade deficit in goods and services narrowed to £0.4 billion in May from £1.8 billion in April. In May, export prices fell 0.5% and import prices decreased 0.9%.
In the three-months to May, the goods deficit fell by £1.9 billion to £28.1 billion, Office of the UK National Statistics said.
In London trading, FTSE 100 index jumped 1.5% or 96.83 to 6,678.41 and in Frankfurt the DAX index advanced 2.6% or 281.81 to 11,278.82.
In Paris, CAC 40 index soared 3.4% or 162.03 to 4,919.25.
For the week, FTSE 100 index increased 1.4% and the DAX index jumped 2% and the CAC 40 index gained 2.3%.
Fraport AG Frankfurt Airport
gained 1.7% to €58.28 after the Germany-based airport services provider reported passenger traffic in June jumped 2.8% from a year ago month to 5.7 million.
The average number of passengers per flight rose to a record of 135.4 and June traffic was record for that month as well.
The airport added total passenger’s traffic in the first-half ending in June climbed 4.1% to 28.9 million. However cargo maximum takeoff weights dropped 2.5% to 173,984 metric tons.
InterContinental Hotels Group Plc
increased 3% to 2,685 pence after the U.K.-based hotel, motels and cruise operator agreed to sell InterContinental Hong Kong to a consortium of buyers for about $938 million but will retain a 37-years management contract.
Ryanair Holdings Plc
jumped 3.3% to €12.51 after the Ireland-based low-cost airline company agreed to British Airways-parent International Consolidated Airlines Group SA’s offer for its 29.8% stake worth about €1.3 billion in Aer Lingus Group Plc.
Ryanair said it will now vote in favor of the motion at the Aer Lingus shareholders extraordinary general meeting scheduled on July 16 to vote on the IAG officer.