Asian stock exchanges are mixed and a good start of the week for oil

2022-01-24T19:00:43
Asian stock exchanges Netflix Oil Wall Street
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Asian stock exchanges are mixed and a good start of the week for oil

Asian stock exchanges are mixed and a good start of the week for oil :Today, oil offset some of last week’s losses with a marked rise, as Asian indices try to reclaim gains again, especially in Japan. 

Evest follows all this in the following report.

Topics:

Analysts lower their predictions for Netflix stock

A marked rise in oil prices at the beginning of the week’s sessions

Bad week’s trading on Wall Street and a mixed start in Asia

A member of the European Commission on Energy: Geopolitical factors underlie the record rise in gas prices

 

 

Analysts lower their predictions for Netflix stock

Some investment companies and banks’ analysts cut their stock price forecast for Netflix, the world’s largest video broadcasting service,
after the company’s quarterly earnings report.

JPMorgan cut its valuation to $605 from $725 and Piper Sandler to $562 from $705. Meanwhile, experts kept their recommendation “above the market.”

Pivotal Research cut its forecast to $550 from $750, UBS to $575 from $690, and Canaccord Genuity to $600 from $750.

On the other hand, analysts recommend “buying” Netflix stocks.

BMO Capital cut the forecast to $650 from $700 (superior rating), and Goldman Sachs to $450 from $580 (neutral).

Analysts at Truist Securities cut their recommendation for persistence in purchase and price to $470 from $690 and Macquarie to “below weight,” from $395 to $615.

Baird reduced its rating to neutral from overweight to $420 from $575, Morgan Stanley to “in line with the market” from “above the market” and up to $450 from $700,
Evercore ISI Group – to “market level” from “at the top of the market” and up to $525 from $710,

 Barclays to “market level” from “above the market” to the US $425 from the US $675.

Credit Suisse downgraded the rating to “neutral” from “superior” and set a target price of $450.

The net increase in Netflix users was below market expectations in the fourth quarter.

In addition, the company’s outlook for the current period is weak: It expects an increase in users by 2.5 million, while analysts assume 5.7 million.

The company’s stock price fell by 20.2% in additional trading on Thursday after the financial statements were released.

It was priced at $508.25 at the close of the main session. 

Netflix’s capitalization over the past 12 months has fallen by a third, while the Standard & Poor’s 500 stock index has risen by more than 15%.

A marked rise in oil prices at the beginning of the week’s sessions

Oil prices are rising steadily during Monday’s trading session after falling on the basis of past trading.

The March futures price for Brent crude on the London Stock Exchange ICE Futures was $88.64 per barrel, which is $0.75 (0.85%) higher than the closing price of the previous session.

As a result of Friday’s trading, these futures declined by $0.49 (0.6%) to $87.89 per barrel.

The price of West Texas Intermediate crude futures for March in electronic trading on the New York Mercantile Exchange (NYMEX) was $85.82 per barrel by this time,
$0.68 (0.8%) higher than the final value of the previous session. As a result of prior trading, the value of these futures fell by $0.41 (0.5%) – to $85.14 per barrel.

According to Trading Economics, the market is backed by concerns about oil supply related to rising geopolitical tensions.

Brent and West Texas Intermediate crude prices have risen by about 14% since the beginning of the year due to strong demand and limited supply.

Last week, Morgan Stanley experts raised their forecast for Brent crude for the third quarter of this year to $100 per barrel, following Goldman Sachs analysts.

Previously, they expected prices to rise to $90 per barrel.

 

Bad week’s trading on Wall Street and a mixed start in Asia 

In the US, indices fell by 1.3-2.7% on Friday, the S&P 500 (1.9%) and the Nasdaq (-2.7%) were the highest since March 2020.

The market decline was caused by the general withdrawal of investors from risk,
due to expectations of tightening monetary policy by the Federal Reserve System (FRS).

The weekly decline of the Nasdaq index was 7.6% and Standard & Poor’s 500-5.7%.

The Dow Jones Industrial Index lost 4.6% during the week, its worst performance since October 2020.

The Nasdaq index ended below the critical psychological level of 14000 points, the Market Watch notes.

The index was found in a correction zone on January 19, when its decline exceeded 10% from the November peak.

As a result of Friday’s trading, the decline increased to 15%.

Weaker-than-expected quarterly reports of some companies also put pressure on the market.

On Monday in Asia, index dynamics were mixed, with Japan’s Nikkei 225 declining by 0.2%,
China’s Shanghai Composite rising by 0.2% and Hong Kong’s Hang Seng fell 0.9%.

 

A member of the European Commission on Energy: Geopolitical factors underlie the record rise in gas prices

The European Energy Commission member, Kadri Simson, considers geopolitical factors to be one of the underlying factors behind the unprecedented rise in gas prices.

“Participants in the meeting, chaired by France, discussed the supply and reliability of gas in the European Union,”
Simson said at a press conference on Saturday in the French city of Amiens, where an informal meeting of EU energy ministers was held. 

“Gas reserves storage facilities in the European Union are inadequate.
Several ministers pointed out that the situation in the European energy market was influenced by the situation on the eastern border ,
(the European Union) and the position of Russia,” She added. 

“Recently, we have seen gas prices rise to historic highs. This has affected energy prices in Europe.
Consumers and businesses in the European Union are facing difficulties in paying their bills,” She said.

She added that the Governments of the European Union had taken steps to offset those price increases.

Thus, 22 states in the European Union used a range of tools, including the tax exemption,
developed and proposed by the European Commission in October last year, to counteract the energy market situation.
These actions have helped several million SMEs and 70 million families in a critical situation.

According to them, these actions cost the European Union more than 21 billion euros.
It’s a huge amount of money that has helped mitigate the effects of rising prices.

She stressed that “this is not enough to break the stalemate created by several factors, in particular the international and geopolitical ones.”

“Europe has a diverse and reliable gas infrastructure and emergency solidarity mechanisms,
but we will remain alert, and strengthen our solidarity to protect against any surprise” She added.

 

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