US Stocks 

Global oil prices dropped on Thursday to their lowest levels since before Russia’s February invasion of Ukraine, as traders fretted over the possibility of an economic recession later this year that could torpedo energy demand. Benchmark Brent crude futures settled down US$2.66, or 2.75 per cent, at US$94.12, the lowest close since Feb 18. West Texas Intermediate (WTI) crude futures settled down US$2.34, or 2.12 per cent, at US$88.54, the lowest close since Feb 2. The fall in oil prices could come as a relief to large consumer nations including the United States and countries in Europe, which have been urging producers to ramp up output to offset tight supplies and combat raging inflation. Oil had surged to well over US$120 a barrel earlier in the year. A sudden rebound in demand from the darkest days of the Covid-19 pandemic coincided with supply disruptions stemming from sanctions on major producer Russia over its invasion of Ukraine.

Virgin Galactic Holdings shares plunged after the space tourism company again delayed its commercial service, calling for a launch in the second quarter of 2023. The company had previously disappointed investors by pushing back the launch, once planned for the third, then fourth quarter of 2022. In May, Virgin Galactic delayed it to the first quarter of 2023. On a conference call Thursday (Aug 4) to discuss quarterly results, chief executive officer Michael Colglazier cited supply-chain disruptions and labour constraints as pressures on its operations. Virgin Galactic shares fell 9 per cent to US$7.45 as of 5.51 pm after the close of regular trading in New York. The stock dropped about 39 per cent this year through Thursday's close. The company, founded by entrepreneur Richard Branson, last month said it was contracting with Boeing's Aurora Flight Sciences to design and build 2 motherships. The twin-hulled aircraft carry its passenger spaceships to about 50,000 feet and release them to travel into space.

BlackRock is partnering with Coinbase Global to make it easier for institutional investors to manage and trade Bitcoin, marking a major push into cryptocurrencies for the world’s largest asset manager. Top clients will be able to use BlackRock’s Aladdin investment-management system to oversee their exposure to Bitcoin along with other portfolio assets such as stocks and bonds, and to facilitate financing and trading on Coinbase’s exchange, said a statement on Thursday (Aug 4). The focus of the partnership with Coinbase, the biggest US crypto-trading platform, “will initially be on Bitcoin”, BlackRock said. The move underscores how Wall Street’s traditional financial players are expanding deeper into crypto and related technologies, even after this year’s meltdown in such assets. Bitcoin has lost about half of its value in 2022, while the collapse of the Terra ecosystem and Three Arrows Capital have raised questions about the resilience of the market and prompted increased regulatory scrutiny. Coinbase is facing a probe by the US Securities and Exchange Commission into whether the company let Americans trade digital assets that should have been registered as securities. BlackRock chose to partner with Coinbase because of its scale in the market and role in providing trading, custody services, prime brokerage and reporting capabilities. The services will be available for clients of both companies.