Riyadh, Saudi Arabia: OPEC+ is set to convene virtually on June 2 to discuss its crude production policy, as announced by the OPEC Secretariat. The meeting comes amidst uncertainties surrounding the format of the gathering, with speculation of a shift to a virtual platform. The alliance, which includes OPEC countries and their allies, is currently committed to maintaining a production cut of 2 million barrels per day until the end of this year, in addition to voluntary reductions made by key members like Saudi Arabia and Russia.
Market observers are closely monitoring the possibility of extending the second-quarter voluntary cuts amid concerns over supply security amidst ongoing conflicts in the oil-rich Middle East. The recent decline in Ice Brent futures contract and Nymex WTI contract prices reflect the cautious sentiment among investors as they await the outcome of the upcoming virtual meeting.
Furthermore, in Seoul, South Korea, Samsung Electronics experienced a 2.3% dip in its shares following reports that its latest HBM chips are not meeting the testing standards set by Nvidia. The issues are primarily related to heat and power consumption, impacting both the fourth-generation HBM3 chips and the upcoming HBM3E chips launching this year. This setback affected the broader Kospi index, which saw a 1.05% decrease.
Meanwhile, in Tokyo, Japan’s inflation rate saw a slight decrease to 2.5% in April, marking a second consecutive month of deceleration. Core inflation, excluding fresh food prices, also slowed to 2.2%, while the “core-core” inflation rate, excluding energy prices as well, dropped to 2.4% in April. These figures will be crucial for the Bank of Japan in formulating its monetary policy moving forward.
Looking at the global market sentiment, investors’ optimism towards the outlook for stocks reached a six-week high before a recent slump. Bullishness rose to 47% in the latest American Association of Individual Investors poll, reflecting a positive sentiment towards the market. On the other hand, bearish opinions increased to 26.3%, while neutral sentiment decreased to 26.6%, underlying the cautious approach of investors in the current market environment.
In the retail sector, apparel and footwear brands are defying the odds, showing signs of resilience. Companies like Ross Stores, Ralph Lauren, Urban Outfitters, and TJX are reporting positive same-store sales, indicating a consumer interest in discretionary spending. Similarly, in the tech sector, Workday and Intuit faced setbacks in extended trading after missing revenue projections, while Coinbase and Robinhood saw gains following the SEC’s approval for ether ETFs.
Overall, these developments across various sectors paint a complex picture of the global market landscape as investors navigate through uncertainties and opportunities in the current economic environment.