Oil positive and stock markets are retreating
Oil positive and stock markets are retreating
Oil positive and stock markets are retreating: Some markets have been able to recover again,
as oil maintained its progress yesterday.
It rose today for the second session in a row.
Stock markets have not been able to hold for long, as most of them retreated in Asia and United States.
Evest is following up on developments in global markets and transmits them daily to you.
Oil is able to rise for the second session in a row
Oil prices continued to rise today, amid expectations of an improved global economy and an increase in energy demand.
After US non-agricultural salaries data which were announced last week,
services sector data which were announced on Monday
exceeded expectations and reached its highest levels at all.
Accelerated recovery in China’s services sector led to an increase in optimism regarding economic activity all over the world.
Brent crude futures
The cost of Brent crude futures for June delivery in the London Futures Exchange reached $ 63.5 a barrel.
This is higher by $ 0.31 (0.49%) than the closing price of the previous session.
As a result of Tuesday’s trading, these contracts rose by $ 0.59 (1%) to record $ 62.74 a barrel.
West Texas Intermediate crude future
The price of West Texas Intermediate crude future for May in electronic trading
of the New York Mercantile Exchange (NYMEX) reached $ 59.6 a barrel.
This is higher by $ 0.27 or (0.46%) than the level at the closing of the previous session.
On Tuesday, the value of these contracts rose by $ 0.68 (1.2%) to record $ 59.33 a barrel.
The oil market has begun to show adjustment to OPEC’s recent decision to increase production,
as a shock now appears to have faded and oil is again rising more steadily.
Yesterday, IMF improved its expectations for world economic growth for 2021 to 6% from 5.5% in 2022, and 2022 to 4.4% from 4.2%.
Energy Information Administration (EIA)
At the same time, the Energy Information Administration (EIA) of the United States Department of Energy increased
the demand forecast for liquid hydrocarbons in 2021 by 0.2 million barrels a day from previous expectations to 97.7 million barrels a day.
Energy Information Administration also expects world oil reserves to decline by 1.8 million barrels a day during the first half of 2021.
In the United States of America, President Joe Biden spoke “amazing progress) in vaccination campaigns.
In the United States, all adults have to be able to schedule vaccinations in less than 2 weeks.
On the other hand, data released by American Petroleum Institute (API) on Tuesday
showed a decline in US oil inventories for the week ending April 2, by 2.62 million barrels a day.
During the previous week, inventories had been increased by 3.91 million barrels a day.
However, gasoline inventories rose by 4.55 million barrels.
Inventories of distilleries also increased by 2.81 million barrels.
It is assumed that official data of US Energy Information Administration oil inventories will be announced today.
Investors rely on
Investors rely on a significant improvement in global economic growth, supported by vaccination against Covid-19,
as they think of growing demand for fuel and assess the impact of handicaps in economies, particularly in Europe,
which was introduced as everyone struggles against the third wave of Coronavirus infections.
So, this matter seems to be mixed and complex for oil,
and as there is hope for economic recovery and improvement in oil demand,
there is also daily news that disappoints these hopes,
as cases of Covid-19 infections daily increase in Europe, affecting market morale from time to time.
It is reported that during the first quarter of 2021,
the price of West Texas Intermediate crude rose by 22% in New York.
Asian Exchanges are retreating… Nikkei is flying alone in the green zone
Tokyo Stock Exchange had somewhat been recovered on Wednesday after a major decline on the previous day,
as Toshiba shares managed to rise after a takeover bid from British private equity firm CVC, which is being reviewed by the group.
The leading Nikkei index rose by only 0.12% to record 29,730.79 points after its decline by 1.3% on Tuesday.
Boarder Topix index rose by 0.67% to record 1,967.43 points.
US and Japanese stocks
US and Japanese stocks recently rose against the backdrop of expectations for good financial results,
so securities of technology groups and others of Heavyweight companies in ratings became more volatile at the start of their quarterly releases.
On other hand, the strengthening of Yen against the dollar led to limit Wednesday’s recovery in Tokyo.
This is a negative exchange rate for Japanese export groups.
In Hong Kong, Hang Seng Index lost 0.8%, shortly before closing,
while Shanghai Composite Index retreated by 0.35%.
Shenzhen also fell by 0.58%.
Stock Exchange in Seoul declined by 0.3%, while Sydney lost 0.6%.
Loss in Wall Street
US futures hardly moved after a negative shutdown on eve of major stock indexes.
Standard & Poor’s index lost 4.01 points (-0.10%) to trade at 4073.93.
Nasdaq Composite index fell by 7214 points (-0.05%) to record 13,698.37 points,
while Dow Jones index retreated by 96.42 points or (-0.29%) to reach 33,430.77 points.
Wall Street traders are waiting for 10-years Treasury bond prices, which after jumping to a record level of 1.77%,
since early 2020, recovered during yesterday’s session, dropping by 7 basis points to 1.65%.
Today, Federal Reserve Board is expected to publish reports of the last meeting in March.
The report may give signs of data in which the Federal Reserve Bank may gradually decide
withdrawal of extraordinary stimulus cash by Jerome Powell.