Negative trading on Wall Street and Asia  And oil market declines after past sessions’ gains

2022-01-06T19:19:01
Asian indices Negative trading Oil Wall Street
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Negative trading on Wall Street and Asia  And oil market declines after past sessions’ gains

Negative trading on Wall Street and Asia  And oil market declines after past sessions’ gains :Markets fell sharply yesterday due to the release of the Federal Reserve’s meeting minutes, as it seems that interest rates will need to be raised faster than expected. 

Evest follows market developments in the following report:

Topics:

Asian indices end trading in the Red Zone against the backdrop of Wall Street losses

Oil declines after three consecutive sessions of gains

US indices declines sharply after the December meeting minutes were released

Asian indices end trading in the Red Zone against the backdrop of Wall Street losses

The Asia-Pacific Region (APR) Stock Index declined during Thursday’s dealings against the backdrop of a fall in the US stock market following ,
the release of the minutes of the December meeting of the United States Federal Reserve System (FRS).

“The meeting participants generally noted that, given their outlook for the economy, labor market and inflation,
there may be a need to raise prices at a faster rate than previously expected,” according to the minutes of the meeting on December 14-15. 

Some Fed leaders have also drawn attention to the fact that the Fed may have to start reducing the size of assets on the balance sheet shortly after the interest rate increases.

Japan’s Nikkei 225 index fell 2.55%. The Shanghai Composite Index declined by 0.1%, and the Hong Kong Hang Seng Index lost 0.3%.

South Korea’s Kospi Index fell by 0.9%.

The Australian S & P/ASX 200 index declined by 2.7%.

Toyota Motor index added 0.5% in price, while Honda Motor Limited lost 0.2%.

Fast Retailing, Asia’s largest clothing retailer, fell by 4.5%.

The PMI for services for Caixin Media Co and Markit in China jumped 53.1 points in December while it was at 52.1 points in November.

The market value of one of the world’s largest chip makers, Samsung Electronics,
fell 0.5%, while the car manufacturer Hyundai Motor declined – by 0.9%.

Stocks of the world’s largest mining companies BHP Group Ltd. and Rio Tinto Ltd. rose by 0.1% and 0.7% respectively.

 

Oil declines after three consecutive sessions of gains

Oil prices declined for the first time in four sessions under predictions of tightening monetary policy in the United States,
as well as lower demand in China due to the introduction of closures in a number of cities because of the increased infection rate from Covid-19.

The cost of the March Brent oil futures on the London Stock Exchange Futures on Thursday is $79.66 per barrel,
$1.14 (1.41%) below the closing price of the previous session.

As a result of Wednesday’s trading, these futures rose by $0.8 (1%) – to $80.80 per barrel, the highest since July 25.

The price of West Texas Intermediate crude futures for February in ,
electronic trading on the New York Mercantile Exchange (NYMEX) at this time is $76.8 per barrel,
$1.05 (1.35%) lower than the final value of the previous session. 

By Wednesday’s closing, these futures rose by $0.86 (1.1%) to $77.85 per barrel, the highest value since November 24.

The minutes of the December meeting of the Federal Reserve System (FRS) released on Wednesday showed the “hard-line” stance of the leaders of the US Central Bank.

Some Fed leaders have also drawn attention to the fact that the Fed may have to start reducing the size of assets on the balance sheet shortly after the interest rate increases.

 

US indices declines sharply after the December meeting minutes were released

US indices declined by 1.1-3.3% yesterday after the release of the minutes of the December meeting of the United States Federal Reserve,
which showed the “hard-line” attitude of the leaders of the United States Central Bank.

Technology stocks, which are most sensitive to the rate hike, caused the Nasdaq index to decline (-3.3%).

The Dow Jones Industrial Index fell as the market closed on Wednesday by 392.54 points (1.07%) to 36407.11 points.

The Standard & Poor’s 500 fell by 92.96 points (1.94%) to 4700.58. The Nasdaq Composite Index lost 522.54 points (3.34%) to 15100.17.

This week, investors are also focusing on US labor market data.

The weekly report on the number of new claims for unemployment benefits will be released on Thursday,
and data on the number of jobs and the unemployment rate will be released on Friday.

A report by industry organization ADP, published Wednesday, showed maximum job growth over 7 months in the U.S. private sector in December – 807 thousand.

Experts surveyed by Trading Economics expected an average increase of 400 thousand. The number rose by 505 thousand in November.

The average growth rate of private-sector jobs in the fourth quarter was 625 thousand, exceeding the average of 514 thousand in 2021.

In total, more than 6 million jobs were created last year, but still close.

AT&T Inc’s stock price rose by 2.2%.

The telecom company said that the number of subscribers to its main wireless service in the fourth quarter increased by 880 thousand,
surpassing the 800 thousand last year.

The Ford Motor Company index fell by 2.7%, and the automaker said that its sales in the United States in December were 17.1% lower than the previous year,
at 173.74 thousand cars.

General Motors, which unveiled its new electric Chevrolet Silverado pickup on Wednesday, fell by 4.6%.

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