Mixed performance in stock markets and a big leap in U.S. house prices

2021-12-29T17:19:23
Dow Jones Nasdaq oil inventories Standard & Poor's stock markets
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Mixed performance in stock markets and a big leap in U.S. house prices

Mixed performance in stock markets and a big leap in U.S. house prices: The American Petroleum Institute announced a decline in US inventories, supporting slightly higher prices. 

Evest follows market developments in the following report.

Topics:

Oil prices rise backed by declining inventories

US oil inventories decline

Approaching discussions between the United States and Russia on strategic stability

Dow Jones rises for the fifth straight session Nasdaq and Standard & Poor’s decline

House price index jumps 18.4%

Negative dynamics in Asia

Aviation stocks rise Apple and Moderna lose

Oil prices rise backed by declining inventories

Oil prices rose moderately on Wednesday, with forecasts that data from the US Department of Energy on the country’s energy reserves will be released.

Brent crude futures for February on the London Futures Exchange rose by $0.16 (0.2%), to $79.1 per barrel.

Brent crude rose by $0.34 (0.4 percent) to $78.94 per barrel on Tuesday.

West Texas Intermediate crude futures’ prices for February in electronic trading on the New York Mercantile Exchange (NYMEX) rose by $0.04 (0.05%), to $76.02 per barrel.

During the previous session, the future rose by $0.41 (0.5%) to $75.98 per barrel.

Oil prices stabilize near their monthly highs with a significant risk appetite.

In the meantime, traders continue to assess news of the spread of a new strain of the coronavirus,
and its consequences for the economy, according to Trading Economics.

US oil inventories decline

Data from the American Petroleum Institute (API), released on Tuesday,
indicated that US oil inventories declined by 3.09 million barrels over the past week 

at the terminal in Cushing, where oil traded on the New York Stock Exchange is stored, rose by 1.594 million barrels.

Approaching discussions between the United States and Russia on strategic stability

U.S. State Department spokesman Ned Price said on Tuesday that the United States is very much looking forward ,
to discussions with the Russian Federation in talks on strategic stability scheduled for January 10,
but Washington would not want to discuss its allies without their knowledge.

He expressed his confidence that during the discussions the two parties would reach areas of agreement and disagree in other areas.

Price also stated that the American approach to the status of Ukraine remained consistent ,”containment and diplomacy” towards the Russian Federation,
which would face serious consequences in the event of hostilities against Ukraine.

He added that it appeared that the Ministry of Foreign Affairs would continue to publish additional details ,
of future negotiations between the Russian Federation and the United States in the coming days.

Dow Jones rises for the fifth straight session Nasdaq and Standard & Poor’s decline

Stock indices in the United States closed trading on Tuesday without a single dynamic, having changed by 0.1-0.6%.

The Dow Jones index rose (+ 0.3%) for the fifth session in a row, the longest sustained gain period since early November,
while the Standard & Poor’s (-0.1%) and Nasdaq (-0.6%) declined.

The Dow Jones Industrial Index rose by 95.83 points (0.26%) to 36398.21 points on Tuesday.

Walt Disney’s stocks, which rose 1.6%, and Boeing were at the top of the growth among the components of the index.

The Standard & Poor’s 500 fell by 4.84 points (0.1%) to 4,786.35 points on the day.

Among the negative factors were stocks of medical equipment manufacturer DexCom,
which dropped by more than 7%, and the online store Etsy Inc. – by 3.5%.

The Nasdaq Composite Index fell by 89.54 points (0.56%) at the end of the session, recording 15781.72 points at the close.

while Covid-19 continues to spread globally, hurting airlines and travel companies in particular because of high infections among employees,
investors continue to believe that the global economy can cope with it.

However, next year the market is unlikely to rise as strong as it was in 2021, as MarketWatch points out.

Since the beginning of this year, the Dow Jones has added nearly 19%, the Standard & Poor’s Index – over 27% and the Nasdaq – 22.5%.

House price index jumps 18.4%

The S&P CoreLogic Case-Shiller house price index in the 20 largest US cities jumped by 18.4% in October compared to the same month last year.

The double-digit growth continued for eleven months in a row. 

By monthly comparison, the index rose by 0.8%.

Analysts predicted an average increase of 18.5% previously and an increase of 0.7% per second, according to Trading Economics.

Negative dynamics in Asia

In the meantime, the negative dynamics of stock indices prevail in Asia on Wednesday (Japan’s Nikkei index declined by 0.7%,
China’s Shanghai- 0.8%, Hong Kong’s Hang Seng 0.9%), and US stock futures were weak “plus” (Standard & Poor’s futures contract by 0.1%).

Market participants also continue to monitor news about Omicron and the reaction of countries to the spread of the strain.

The UK authorities decided not to introduce new restrictions until the end of this year,
and see if the country’s medical system can handle the high incidence of the infection.

This decision was considered a positive factor by the market.

Aviation stocks rise Apple and Moderna lose

Hopes for a stable travel situation were driven by the rise in airline stock prices, including American Airlines Group – by 2% and Delta Airlines – by 1.6%.

In the meantime, Moderna Pharmaceutical Industries’ stock price quotations continued to decline,
losing 2.2% on Tuesday – despite falling 16% over the past five days.

Apple announced the temporary closure of 11 stores in New York indefinitely due to a coronavirus outbreak in the city.

The company’s stocks fell by 0.6%.

Meanwhile, it reached its historic maximum value the day before.

Coinbase Global fell by 6.8% amid a decline in cryptocurrencies, including a 6.3% decline in Bitcoin.

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