Minor movements of Oil and Gold
Minor movements of Oil and Gold.. And the Asian stock markets are trading in clear contrast
Minor movements of Oil and Gold: New developments taking place this week at the level of global financial markets,
as oil and gold appear to be stable, and major events are evident in the stock markets.
Every day, Evest tracks daily events affecting trading, exclusively for you.
Oil is rising in a limited way
A barrel of Brent oil is trading at $ 69.73 in global markets on the first trading day of the week,
after the price of a barrel of Brent oil ended trading last Friday at $ 69.22.
Brent crude rose 0.74 percent compared to the previous close, at the same time,
a barrel of American West Texas Intermediate crude oil found buyers at $ 66.13.
The acceleration of the economic recovery in China, the largest importer of oil in the world,
and the strengthening of the perception that the economic support package in the United States will increase the demand for oil has been effective in raising prices.
Chinese National Bureau of Statistics
According to data from the Chinese National Bureau of Statistics,
daily refinery production increased by 15 percent in the January-February period compared to the same period last year,
reaching 114.24 million tons.
the United States
In the United States, the largest consumer of oil in the world,
approval of the $ 1.9 trillion economic support package that will be implemented to limit the effects of the new type of coronavirus, COVID-19, on the economy, supports an upward trend in prices.
On the other hand, the uncertainty about the side effects of the Covid-19 vaccines is limiting the price increase to some extent.
In a statement issued by the Dutch Ministry of Health, it was reported that the use of the Covid-19 vaccine developed by the University of Oxford and the pharmaceutical company AstraZeneca has been temporarily suspended until March 28 for preventive purposes and for further investigations.
Ireland, Norway, Denmark, Iceland, Romania, Italy and Bulgaria have previously stopped using the vaccine in question.
In addition, the appreciation of the US dollar against other currencies limits the rise in the price of crude oil, which is pegged to the dollar in the short term.
Fossil fuels received a tailwind from news that Saudi Arabia announced a cut in exports in April of up to 15 percent for four buyers from North Asia. All this will help the price of oil to remain near its highest level in twelve months.
Gold is stable
The price of gold stabilized this morning, Monday, and gold futures for April delivery fell $ 3.30 to $ 1723.10 an ounce.
In the early morning, China recorded better than expected economic indicators. Compared to similar previous year’s figures, industrial production increased by 35.1% annually and retail sales by 33.8% annually.
US bond yields are pressing technology stocks
The pattern of the past few days in the US stock market repeated itself on Friday, bond yields rose again and put technology stocks under pressure, while the Dow Jones Industrial Average rose 0.90% to 32,778.64 points at the end of the day, capping a strong week that saw it rise by more than four in Cent. The Nasdaq Composite Index decreased 0.59% to 13,319.86 points.
US 10-year yields jumped more than 9 basis points to 1.642%, reflecting investor concerns about a future rise in inflation. Against this background, very high-valued tech stocks have suffered.
Boeing flew over the Dow Jones on Friday, rising 6.71% to $ 269.07 a share. After two difficult years, business is restarting for the aviation giant and its former flagship, the 737 MAX. The US giant has in fact signed an agreement with 777 Partners to order 24 737-8s, for a contract worth $ 2.9 billion.
US producer prices rose 0.5% in February 2021. Briefing.com expected a 0.5% increase after rising 1.3% in January. For their part, “core” prices, excluding food and energy, rose 0.2% in February 2021, against expectations of a 0.2% rise and after an increase of 1.2% in January.
The University of Michigan Consumer Confidence Index stood at 83 in March 2021, according to a preliminary estimate. Reuters forecast had a target of 78.5 after 76.8 in February.
DAX expected to rise today
After setting another record in the Dow Jones Industrial Average + 0.90%, IG also sees the German benchmark index rise again on Monday.
Two hours before the start of trading, the German DAX Index was estimated to have increased by 0.2 percent to 14,530 points. Overnight, the record high continued with 14,601 points. And the previous week, it crowned a record four-day streak on Thursday, up 14,595 points. The weekly increase was finally over four percent.
Various trends for the Asian market
Equity markets in Asia started the new week without a steady trend. The US record series for the Dow Jones Industrial Average supported the trading slightly. Japan’s leading Nikkei index closed up 0.2%,
after mechanical engineering orders showed no drop as much as had been feared compared to the previous month.
Auto stocks and financial stocks recorded gains, especially the previous one, supported by further weakness in the yen.
Honda Motor Co. climbed 3.2 percent and Mitsubishi UFJ Financial Group rose 2.2 percent.
Shanghai posted losses of around 1 percent after a brief recovery in early business. There was a clear downtrend with Chinext at 1.4%, which mainly depicts tech-heavy startups. Experts expect Bohai Securities to further weaken in the near future as they see last week’s rebound as only a technical response.
In contrast, Hong Kong rose – albeit after significantly higher insurance premiums – by 0.6 per cent.
In South Korea, taxes on pharmaceutical and chemical stocks weighed on the Kospi, which closed 0.2 percent lower. The Woori Financial Group rose 1% after reports that a bank in Taiwan issued ESG bonds worth $ 200 million.
The Australian market
In the Australian market, despite the weakness in mining and technology stocks, a slight increase was maintained at the end of trading. The main index was supported by pharma and energy stocks. Lower iron ore prices have also affected China, as restrictions have been imposed on steel processors in the north due to the high level of air pollution.
Shares of Xiaomi, the Chinese smartphone maker, rose nearly 10 percent in Hong Kong, after a US federal court suspended sanctions against Xiaomi.