A new decline in oil prices And Nikkei cuts his nine-session winning streak The situation in China is further exacerbated by the increase in the number of Covid-19 infections,
which is adding to the tension over the global demand for oil

Evest follows market developments in the following report

Topics:

Oil prices decline after new China’s restrictions

Fitch withdraws the rating of the Russian Federation

Nikkei falls and breaks nine-day winning streak

London’s FTSE rises at the beginning of the week

Oil prices decline after new China’s restrictions

Oil prices decline on Monday after reports of China introducing serious restrictive measures to curb the spread of the coronavirus

Bloomberg reported that the Shanghai authorities have closed the eastern part of the city, which includes the financial district and industrial parks,
for four days since Monday for citizen mass checks.

In the future, the western part of the city will also be closed for four days.

Experts are concerned that quarantine restrictions will weaken China’s energy demand

The cost of Brent crude futures for May on the London Futures Exchange on Monday is $117.4 per barrel,
$3.25 (3.69%) lower than the closing price of the previous session.

As a result of Friday’s trading, these futures rose by $1.62 (1.4%) to $120.65 per barrel

The price of West Texas Intermediate oil futures for May in electronic trading on the New York Mercantile Exchange (NYMEX) is $110.54 per barrel,
$3.36 (2.95%) lower than the final value of the previous session.

On Friday, the cost of these futures rose by $1.56 (1.4%) to $113.9 per barrel

Over the past week, the price of Brent crude rose by 12%, that of West Texas Intermediate – by 10.5%.

The increase in oil prices, in addition to the ongoing Russian-Ukrainian conflict, facilitated reports of an attack on an oil storage facility in Saudi Arabia, for which Yemeni Houthi rebels claimed responsibility

Bloomberg reported that, on Saturday, the leader of the Houthi group, Mahdi Al-Mashat, announced a three-day cessation to the attacks

According to Reuters analysts: “The oil market will naturally begin to deal with concerns about demand prospects.

The main factor that can change market dynamics is the status of diplomatic negotiations between Russia and Ukraine, leading to sharp price fluctuations

Fitch withdraws the rating of the Russian Federation

International Classification Agency Fitch withdrew the Russian Federation’s ratings

The summons resulted from European Union sanctions against Russia, according to an agency press release

At the time of the withdrawal, the Russian ratings were long- and short-term for the foreign and domestic currency issuer,
as well as the unsecured debt rating, were at “C” and the country’s rating cap was -B

Under the fourth package of sanctions adopted by the States of the European Union on 15 March 2022,
European agencies are prohibited from classifying the Russian Federation and Russian companies,
as well as from providing classification services to Russian customers

Last week, Fitch announced that it would withdraw the ratings of all Russian entities and their affiliates by 15 April, the deadline set by the European Union

Nikkei falls and breaks nine-day winning streak

Japan’s Nikkei fell on Monday, cutting a nine-day winning streak, as investors’ profits stabilized before the end of the fiscal year this week

The Nikkei ended 0.73% lower at 27943.20, after a nearly 12% rise over nine days that included the benchmark index approaching a five-week high of 28338.81.

The broader Topix index fell 0.41 percent to 973.37

The Nikkei index ended today at its lowest level, owing to offers by the Bank of Japan (BOJ) to purchase an unlimited amount of government bonds for 10 years,
demonstrating its commitment to a policy of controlling the highly pessimistic yield curve with the record yield reaching the implicit policy ceiling

The yen weakened by more than 123 against the dollar after the Bank of Japan, supporting exporters’ stocks.

Toyota Motor index rose by 0.59 percent and Nissan by 1.81 percent

Energy stocks were the best-performing sector, rising by 1.61%, with crude oil prices continuing at very high levels despite a sharp decline on Monday Core items were the largest with a decline of 1.75%

Japanese chips giants also declined, following a decline in their United States counterparts in the previous session.

Tokyo Electron fell by 1.31% while Advantest fell by 1.04%

The biggest loser in terms of index points was Fast Retailing, the Uniqlo store operator, which declined by 1.79 percent

Startup investor SoftBank, which invests heavily in China, wiped back previously to end unchanged amid a rise in technology stocks listed in Hong Kong,
despite the closure of the coronavirus in Shanghai

Stock prices in London are expected to open slightly higher on Monday at a cautious start to the new week,
with markets tracking geopolitical developments and rising Covid-19 cases in China, while new drivers are also waiting for a quiet day on the economic calendar

London’s FTSE rises at the beginning of the week

London’s FTSE 100 rose on Monday, backed by financial data and consumer commodities,
although gains were limited by energy stocks as oil prices continued to fall due to concerns about Chinese demand

The blue-chip index rose 0.3%, while the average domestic-focused FTSE 250 rose by 0.4%

Major oil companies BP Plc and Shell Plc fell 1% and 0.7%, respectively,
with oil prices falling by more than $3 after Shanghai China launched a two-stage shutdown plan to contain an increase in Covid-19 infections

HSBC Holdings’ Asia-focused creditor rose by 1.3% and Dove Unilever’s soap industry rose by 0.6%,
providing the biggest boost to the FTSE 100 index

While peace talks between Russia and Ukraine are scheduled to take place in Turkey this week,
Ukrainian President Volodymyr Zelensky insisted on his country’s territorial integrity, having previously indicated his willingness to make concessions

A new decline in oil prices

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