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Sat, 25th March 2017

Anirudh Sethi Report

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Archives of “2009 in film” Tag

Overnight US Market :Dow closed -19 points.

Energy companies led U.S. stock indexes lower Monday as the price of crude oil declined. Phone company and materials stocks were also among the big decliners. Investors were weighing the latest batch of company earnings news.

The Dow Jones industrial average fell 19.04 points, or 0.1%, to 20,052. The Standard & Poor’s 500 index fell 4.86 points, or 0.2%, to 2293, as the broad-based index snapped a three-day winning streak. The Nasdaq composite index fell 3.21, or 0.1%, to 5664, as the tech-heavy index pulled back from Friday’s record closing high.

Benchmark U.S. crude fell 82 cents, or 1.5%, to close at $53.01 a barrel in New York. Brent crude, used to price international oils, lost $1.09, or 1.9%, to $55.72 a barrel in London.

Several energy companies were trading lower. Devon Energy slid 3.2%, while Chesapeake Energy dropped 3%. Marathon Oil shed 4.1%.

The 10-year Treasury yield fell to 2.42% from 2.47% late Friday.

Investors are still cautious as Trump’s early acts as president have been shaping markets for the past couple of weeks. On Friday, Trump directed the Treasury Secretary to look for potential changes to the Dodd-Frank law, which reshaped financial regulations after the 2008-09 financial crisis. Investors applauded that move but remain uncertain about the future impact of other policies. Over the weekend, the U.S. immigration ban on refugees and travelers from seven Muslim-majority countries was blocked by a federal judge and an appeals court turned down a Justice Department request to set that judgment aside. The White House said it expects the courts to restore executive order, which was founded on a claim of national security.

Global defaults hit century mark – S&P Global Ratings

GDF

Global defaults hit the milestone century mark last week, a 50 per cent jump from the number of delinquencies at the same point last year and the highest level since the US emerged from recession in 2009.

The number rose by four to 100 in the first full week of July, as defaults in the US oil and gas sector ratcheted higher, according to Diane Vazza of S&P Global Ratings.

That brings the amount that has been defaulted on to $154bn.

Defaults have been paced by lowly-rated crude producers, which have faced difficulties securing new debt financing since oil began to tumble two years ago. That has forced many companies to renegotiate debt obligations with creditors, file for bankruptcy protection or miss interest payments

Despite a rise in energy prices from lows touched in January and February, with crude up 2 per cent on Thursday to $45.60 a barrel, the commodity still trades below profitable levels for many energy producers.

The latest defaults included distressed debt exchanges from oil group MD America Energy and FTS International, the largest private well servicer in the US, as well as a missed payment by telecommunications group Goodman Networks.

The New York-based rating agency expects defaults by so-called junk rated companies in the US to climb to 5.3 per cent by March 2017, up from 3.8 per cent a year earlier.

“So far, there has been little spillover effect into other sectors, but we are not ruling this out in the coming quarters,” Ms Vazza said. “We also expect this stress on many US oil and gas companies to persist with continued low oil prices.”