Growing tensions in equity markets and oil continues to rise

Oil prices continued to rise on Tuesday morning after a slight decline the previous day
and traders assess the supply and demand situation in the global fuel market

Evest follows market developments in the following report

topic

Oil continues to rise

Increased tension in markets with expectations of further monetary tightening in America

Asian stocks performance is mixed

Australian Reserve raises interest rates twice as much as expectations

Oil continues to rise

The August futures cost for Brent crude on the London Stock Exchange ICE Futures is $120.16 per barrel
which is $0.65 (0.54%) higher than the closing price of the previous session
As a result of Monday’s trading, the futures contract fell by $0.21 (0.2%) to $119.51 per barrel

The price of West Texas Intermediate oil futures for July in electronic trading on the New York Mercantile Exchange
(NYMEX) was $119.20 per barrel by this time, $0.70 (0.59%) higher than the final value of the previous session
The day before, these futures fell by $0.37 (0.3%) to $118.50 per barrel

As it became known over the weekend, Saudi Aramco will raise prices for all classes of oil exported to Asia
northwest Europe and the Mediterranean upon delivery in July
Thus, the cost of the Arab light main class supplied to Asia would increase by $2.1 per barrel
as a result of which it would cost $6.5 per barrel more than the oil basket in the Sultanate of Oman and Dubai

In the meantime, OPEC + ministers decided last week to increase oil production quotas in July and August
by 648 thousand barrels per day instead of the previously planned increase of 432 thousand barrels per day

Sanctions war rages

In response to US sanctions, the Russian Foreign Ministry placed 61 US citizens on a “embargo list”
including high-ranking administrative officials, heads of major US companies, funds, and the media

Japan added two Russian banks (Roselkhzbank and Moscow Credit Bank) and Belarusian Bank Bill Invest to the sanctions list
the Ministry of Foreign Affairs said. It is noteworthy that the assets of these banks will be frozen
In addition, it is stated that goods that contribute to “strengthening the industrial base of the Russian Federation”
will be subject to an export embargo
In April, Japan already imposed sanctions on Alfa-Bank and Sberbank
and their assets were frozen, their dealings have also been embargoed since May 12

On Tuesday, the New Zealand government announced sanctions on 44 Russian and Belarusian companies
including Gazprom and Belarusian defence institutions

Increased tension in markets with expectations of further monetary tightening in America

As we approach the Fed’s June 14-15 meeting tension in global markets may increase due to growing expectations of tighter US monetary policy
Earlier, a majority of Fed representatives supported the proposal to raise the prime interest rate by 0.5 basis points at a forthcoming meeting
The analyst believes that during Tuesday’s trading session, global markets may come under pressure from vendors

The European Central Bank’s meeting and inflation statistics in the United States may
turn out to be driving factors for trend movement in global markets
This will give investors reason to reconsider their expectations regarding
the additional actions of leading central banks under monetary policy
which will lead to the redistribution of portfolio funds between risk assets and preventive assets

artical name Growing tensions in equity markets and oil continues to rise

Expected important data

On Tuesday, the mood in global markets was contradictory
We can highlight the release of data on the UK’s Trade Activity Index and the US trade balance
among the macroeconomic events that could affect the trading course
US Treasury Secretary Janet Yellen’s speech may also attract investors’ attention

Yesterday’s US stock indices rose by 0.1-0.4% in anticipation of inflation data
and the confident early trading rally was replaced by a close-and-run correction to increase the US Treasury yield
which for the first time since May 18 exceeded 3% annually
Analysts assess whether the market has fallen enough given the US Federal Reserve’s intentions
to tighten monetary policy and raise interest rates
The stock market is likely to have already found a bottom after the red eight of the past nine sessions ended
MarketWatch points out

New data on consumer price changes (CPI) will be published in the United States on Friday
Analysts surveyed by Trading Economics expect inflation in May to remain at its level in April of 8.3%

artical name Growing tensions in equity markets and oil continues to rise

Asian stocks performance is mixed

Asian stock indices were mixed on Tuesday, Japan’s Nikkei rose by 0.1%, Korea’s Kospi fell by 1.7%
the Tai Shanghai Composite added 0.2%, and Hong Kong’s Hang Seng added 0.4%

Japan’s consumer spending rose by 1% on a monthly basis in April against a projected 1.3% growth
according to the Trading Economics report. A month ago, consumer spending jumped 4.1%
Annually, the index fell by 1.7% against expectations for a 0.8% decline

artical name Growing tensions in equity markets and oil continues to rise

Australian Reserve raises interest rates twice as much as expectations

The Reserve Bank of Australia (RBA) raised its prime interest rate by 50 basis points
(to 0.85% from 0.35%) amid the country’s continued consumer price growth
Analysts expected a moderate rise of an average of 25 basis points. In May
Australia’s central bank raised the rate for the first time in more than 10 years, at which time it was 0.1%

The Reserve Bank of Australia (RBA) raised its prime interest rate by 50 basis points from 0.35% to 0.85%)
amid the country’s continued consumer price growth

Analysts predicted a milder rise – averaging 25 basis points

In May, Australia’s central bank raised the rate for the first time in more than 10 years
at which time it was 0.1%

The Australian stock index S & P/ASX 200 fell by 1.4% during Tuesday’s trading
while the Australian dollar fell by 0.3% against the US dollar to $0.7172

artical name Growing tensions in equity markets and oil continues to rise

Growing tensions in equity markets and oil continues to rise

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