Global indices are mixed and Bitcoin loses a fifth of its value in a day

2021-12-05T19:05:09
bitcoin Global indices opec
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Global indices are mixed and Bitcoin loses a fifth of its value in a day

Global indices are mixed and Bitcoin loses a fifth of its value in a day: The market is still affected by the panic raised by the announcement of Omicron variant,
which has been the focus of attention in the past period.

Evest follows market developments in the next report.

Topics:

OPEC decides to keep increasing production and oil growth is slowing

Bank of America experts

The number of American jobs has risen at the highest rate since December

Jerome Powell: The central bank should consider reducing the asset buyback program faster

Asian indices rise American and European decline

Bitcoin loses a fifth of its value in a day

 

 

 

OPEC decides to keep increasing production and oil growth is slowing

Oil price growth slowed Friday evening.

Brent crude futures for February on the London Futures Exchange rose by $1.5 (2.2%) to $71.2 per barrel.

West Texas Intermediate crude futures for January on the New York Mercantile Exchange (NIEMX) rose by $1.27 (1.91%) to $67.77 per barrel.

On December 2, OPEC + made an unexpected decision for some market participants to continue to increase production according to the previously agreed plan,
an increase of 400 thousand barrels per day in January, to 38.8 million barrels per day.

However, the Alliance of Petroleum Produced Countries retained the right to change this strategy at any time,
noting the high market uncertainty caused by the discovery of the new strain of coronavirus, omicron.

“The meeting is not closed,” stated a press release published after the meeting.

The unexpected OPEC + decision was likely the result of Russia’s domestic political dynamics and the United States’ foreign political dynamics,”
Bank of America analysts wrote in a comment on commodity markets.

They believe that OPEC + has been affected by three components in addition to the political factor:
Long-term oil contracts, which remain at their highest level in five years, global reserves falling by 350 million barrels from the June 2020 cap,
and incredibly high gas prices, fueling oil demand.

 

Bank of America experts

Bank of America experts also retracted their expectations for the Brent crude price for the summer of 2022,
which assumed that the rate would rise to $120 per barrel.

In our outlook for commodity markets next year, we noted three risks facing the oil market in 2022:
The sale of oil from strategic reserves, the agreement with Iran and the new wave of Covid-19.

Two of these risks were verified in a week.

As OPEC + does not react in the expected way, we expect a Brent price risk of falling at $85 per barrel in 2022,
and falling back on our forecast for Brent crude for the summer of 2022.

The number of American jobs has risen at the highest rate since December

Data from the Department of Labor show that the number of jobs in the U.S. economy increased by 210,000 in November, at the lowest rate since December 2020.

The unemployment rate fell to 4.2 percent, the lowest level since February 2020, down from 4.6 percent in October.

According to the adjusted data, the number of jobs increased in October by 546, not 531, as previously reported.

Experts predicted that the number of jobs would increase in November by an average of 550 thousand and that the unemployment rate would drop to 4.5%.

Traders closely monitor the situation of the labor market as it is an important reference point for the Federal Reserve System (FRS) to make monetary policy decisions.

Experts say strong statistics will become another argument for reducing the Federal Reserve’s asset buyback program faster than previously planned.

Jerome Powell: The central bank should consider reducing the asset buyback program faster 

Federal Reserve Chairman Jerome Powell, speaking on the US House Financial Services Committee on Wednesday,
said it was appropriate for the central bank to consider reducing the asset buyback program faster than previously planned, at the December meeting.

Federal Reserve Bank of Atlanta (FRB) Chairman Rafael Bostic said on Thursday that he believes it is necessary to accelerate ,

the pace of asset buyback in order to be able to raise the benchmark interest rate next year, if inflationary pressures do not ease.

 

Asian indices rise American and European decline

On Friday, the positive dynamics of Asian stock indices prevailed, with Japan’s Nikkei Index rising by 1%,
China’s Shanghai Composite Index – 0.9%, and Hong Kong’s Hang Seng Index losing 0.1%.

In contrast, European indices fell, with FTSE, DAX, and CAC 40 falling by 0.2-0.8%, and indicators in the United States also losing between (0.6-2٪).

On the other hand,  United States President Joe Biden announced on Thursday a new plan to address the coronavirus.

According to him, the new procedures, in particular, provide for the expansion of the campaign to re-vaccinate those who need it.

Meanwhile, the termination of federal structures and the introduction of quarantine is not envisaged.

Bitcoin loses a fifth of its value in a day

Bitcoin lost fifth of its value on Saturday as a combination of profit-making and macroeconomic concerns,
led to the sale of nearly $ billion through cryptocurrencies.

Bitcoin fell by 12% at 0920 GMT to $47495.

It fell to $41,967.5 during the session, bringing the total loss for the day to 22%.

The expansion in the sale of cryptocurrencies has also seen Ethereum decline, by more than 10%.

Based on Coingecko’s  cryptocurrency data platform, the market value of cryptocurrencies tracked by 11392  coins fell by about 15% to $2.34 trillion.

This value briefly exceeded $3 trillion last month, when Bitcoin reached a record $69,900. The decline follows a volatile week in financial markets.

Global equities and record U.S. bond yields slumped on Friday after data showed US job growth slowed in November,
and the Omicron variant of the Coronavirus kept investors on edge.

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