The US stocks rebound and the Asian declines and oil falls with increasing concern from China

US stocks rose strongly on Monday with a general increase in risk appetite in financial markets on signs
that the United States could lift some trade restrictions on China imposed
by former U.S. President Donald Trump’s administration

Evest follows market developments in the following report

topic

US stocks strong positive performance

Oil declines with increasing concern from China

Expected Statistics

Asian stocks continue to fall

US stocks strong positive performance

The Dow Jones Industrial Index rose by 618.34 points (1.98%) as the market closed Monday, to 31880.24
Standard & Poor’s 500 rose by 72.39 points (1.86%) to 3973.75 points
The Nasdaq Composite Index rose by 180.66 points (1.59%) to 11535.27

Current US President Joe Biden said the issue of tariffs on Chinese merchandise imports to the United States was under consideration
and that he planned to discuss it with Treasury Secretary Janet Yellen after returning from an Asian tour, Bloomberg reported
Investors interpreted Biden’s words as a signal of possible elimination of some tariffs

On Monday, statements by JPMorgan Chase & Co. supported the market
increasing traders’ optimism about the prospects of the US economy

In recent weeks

U.S. stock indexes have fallen dramatically on expectations of swift tightening of monetary policy by the Federal Reserve system
as well as concern that high inflation will affect corporate profits
Last Friday, the Standard & Poor’s index came close to ending the session in a downtrend zone, below the January peak of 20%
but managed to bounce back upwards at the end of the session

“The market is set to rally for some time now,” Dow Jones quotes on stocks in the past two months

JPMorgan stocks rose by 6.2% in Monday trading
The largest U.S. bank by assets raised its 2022 net interest income guidance to $56 billion from $53 billion previously projected

JPMorgan Bank Chief Financial Officer Jeremy Barnum said at an investor event that the bank’s loan losses
are likely to remain very low this year because Americans have not yet exhausted
the cash stock that has accumulated during the pandemic

In the meantime, speaking also at the event, the bank’s chief executive James Dimon said
that the US economy remained strong and that potential barriers to growth were not intractable

The S&P Financial Companies Sub-Index rose by the end of trading by 3.2%
showing the best dynamics among 11 sectoral index indicators

Citigroup Inc.‘s stock price rose by 6.1%, Goldman Sachs Group Inc, by 3.2%, and Bank of America Corp. by 5.9%

Oil declines with increasing concern from China

Oil prices declined on Tuesday as concern continued that China’s demand was slumping
due to tight quarantine measures introduced to curb the spread of the coronavirus

Measures to support the economy, including corporate tax breaks and car purchase tax cuts announced
by the Chinese authorities the previous day, did not impress investors, Bloomberg notes

Analysts at UBS Group AG cut China’s GDP growth forecast for the current year from 4.2% to 3%
and JPMorgan experts cut it from 4.3% to 3.7%

In the meantime, the imposition of an embargo on the import of Russian oil by European Union countries has so far stopped
which indicates that “we will not see sanctions in the near future,” the expert says

The cost of the July Brent oil futures on the London Stock Exchange Futures on Tuesday is $112.64 per barrel
$0.78 (0.69%) lower than the closing price of the previous session
As a result of Monday’s trading, these futures rose by $0.87 (0.8%) to $113.42 per barrel

The price of oil futures for July in electronic trading on the New York Mercantile Exchange
(NYMEX) is $109.56 per barrel, $0.73 (0.66%) lower than the final value of the previous session
On Monday, the cost of these futures rose by $0.0 to $110.29 per barrel

In the meantime, US President Joe Biden’s administration is considering releasing
diesel from strategic inventories in order to contain a sharp price rise

White House press secretary Emily Simmons said, if necessary
the United States could quickly release about 1 million barrels of diesel fuel

Expected Statistics

On Tuesday, a wide range of statistics on business activity will be released in Germany, France
the eurozone and the United States – a preliminary indicator of the industry and sector PMI for May

Most likely, trade activity in European countries and the United States will slow significantly in its growth in May
which is linked to higher inflation and difficulties in the supply of production
Thus, negative sentiment will continue in the world’s markets

artical name The US stocks rebound and the Asian declines

Asian stocks continue to fall

In the meantime, Asian stocks fell on Tuesday (Japan’s Nikkei index fell by 0.9%
Korea’s Kospi index by 1.6%, China’s Shanghai composite by 2.3%
and Hong Kong’s Hang Seng lost 2.3%) on inflation concerns
surpassing optimism about the prospect of some countries lifting part of China’s trade restrictions

Investors continue to monitor the situation in Ukraine and its impact on commodity prices
as well as assess the potential for negative consequences for the world economy under China’s closures

artical name The US stocks rebound and the Asian declines

The US stocks rebound and the Asian declines

Related Topics