The Traderszone Network

Oil fell to around $65 a barrel on Tuesday, pressured by the possibility that U.S. shale oil producers could increase drilling activity and by a stronger dollar. U.S. drillers cut the number of rigs by just one last week, data showed on Friday, and Goldman Sachs said prices were at a level that would spur activity. The dollar could rally further, Morgan Stanley said, adding to a growing list of headwinds crude faces that include rising OPEC supply.

Greece’s financial crisis and signs of growing opposition to austerity in Spain sent the euro to its lowest level in a month on Tuesday, while shares and commodities took a knock as the dollar powered higher. Europe’s main markets returned to action after a long weekend with the mood unsettled by Sunday’s strong local election showing by anti-austerity parties in Spain, while bets were put back on a U.S. rate hike this year after having been all but cancelled over the past two months.

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It is encouraging that Greece has signalled its desire to meet looming debt obligations, including a 300 million euro payment to the IMF which falls due on June 5, a senior German official said on Tuesday. “I find it encouraging, if it is true, that the Greeks signalled yesterday their desire to repay the 300 million euros to the IMF on June 5,” the official said.

The dollar strengthened to a four-week high against the euro following comments from U.S. Federal Reserve Chair Janet Yellen on May 22 that it would be “appropriate” to raise interest rates this year if the economy improves. Iraq’s prime minister pledged a swift recapture of the city of Ramadi from Islamic State militants, while in Saudi Arabia King Salman vowed to punish those responsible for a suicide attack on Shiite worshipers.

At least four people are dead and thousands displaced from their homes after record rainfall causes heavy flooding in the south-central U.S.
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Flash-flood watches and warnings were issued across seven states early Tuesday as an unprecedented downpour of torrential rain triggered flooding in Houston.

Priceline Group is increasing its stake in China’s Ctrip.com International as the online travel company seeks a larger footprint in the world’s largest outbound-travel market.
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