Global stock market performance: The European stock market was negatively affected by weak risk appetite.
The European Euro Stoxx 600 index recorded a decrease of 0.16% to 469.69 points.
These declines come after statements by the Governor of the European Central Bank, Lagarde,
who indicated weak consumption in the euro area due to the impact of the labour market and increased savings, and this may negatively affect economic growth in the region.

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US stock market

Nasdaq index

Red Sea disturbances

US stock market

On the other hand, the US stock market witnessed a clear rise in risk appetite.
This came after a statement by US Federal Reserve member Goolsbee, who indicated that the US economy had improved compared to last year.
He also hinted at the possibility of starting to cut interest rates in the upcoming meetings,
indicating the end of the monetary tightening cycle in the United States.
This ultimately supports the performance of the US stock market.

The reasons that contributed to enhancing the positive movements of the Nasdaq index

The preliminary reading of US consumer confidence pushes the Nasdaq index to achieve a historic high

After the initial reading of American consumer confidence during last Friday’s trading,
it presented a positive reading at the level of 78.8, whereas expectations indicated a reading of only 69.8, and the reading for November was around 69.7.

This strengthened the position of American stocks, as the Nasdaq index recorded a clear rise from levels of 17,000 thousand,
with the markets closing at 17,330 thousand, an increase of approximately 1.5% from the time the news was issued.

This contributed to the Nasdaq index returning to positive operations again, with the possibility of continued upward movements.

How do Red Sea disturbances affect Brent crude prices?

The European oil market is suffering from a shortage, as a result of the turmoil in the Red Sea and the increasing Chinese demand for African oil,
according to reports of traders and data analysts on the London Stock Exchanges.

The Brent crude market and some oil markets in Europe and Africa are witnessing a shortage,
partly due to the delay in shipments of some cargo ships due to them avoiding travel through the Red Sea, hurting supplies.

These disturbances coincide with interruptions in production and increased demand in China,
which intensifies competition for oil supplies that do not depend on their passage through the Suez Canal.

Analysts believe that this crisis has clearly manifested itself in European markets.

In this context, the structure of the Brent crude futures market recorded its highest level in two months,
as a result of tankers moving away from the Red Sea after air strikes from the United States and Britain in Yemen.

Kepler data confirms the decline in the quantities of crude heading from the Middle East to Europe,

as the volume of crude decreased by almost half during December compared to October.

Reports say that problems in the Red Sea have caused delays, causing refiners to resort to covering their needs from local markets,
and the market is suffering from a shortage due to the loss of Gulf supplies.

With other developments such as a decline in Libyan supplies due to the protests and a decline in Nigerian exports,
the global economy is witnessing negative impacts from these disruptions in the oil market.

Global stock market performance

Global stock market performance

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