World stocks decline over the past week and oil is in unstable condition

Global stock prices fell last week after four weeks of gains,
with investors’ appetite for risk declining as central banks raised
interest rates due to higher inflation and lower
oil prices as a result of sanctions against Russia.

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Falling stock prices in the World Stock Exchange

Oil continues to decline due to the impact of sanctions on Russian supply and demand

What will a nuclear deal with Iran mean for tense oil markets?

Falling stock prices in the World Stock Exchange

On Wall Street, the Dow Jones Industrial Index fell by 0.2 percent
of its value over the past week, to 33706 points, while S&P declined by 1.2 percent,
to 4228, and the Nasdaq declined by 2.6 percent to 12705.

Caution prevailed in the world’s largest stock market last week because
investors are not sure about the uptrend in the market, which lasted for four weeks.

After a sharp decline in the first half of the year,
the S&P 500 has risen by about 13 percent since mid-June,
thanks in part to better-than-expected quarterly business results for companies.

In recent weeks,

the market has also been supported by a slight decline in US inflation
from more than 40-year highs,
as investors’ hope that the US central bank will not raise
interest rates as strongly as it once did.

The Fed has raised interest rates by 2.25 percentage points since March,
and is expected to raise them in September as well,
investors are hoping for a 0.50 percentage point increase rather
than the 0.75 percentage point expected until recently.

This, of course, will slow agricultural growth,
but investors hope the Fed will “quietly decline”
and not push it into a deep recession.

However, in recent days investors have found no reason to buy stocks,
given the situation in the world’s largest economies.

The US economy is technically in recession,
owing to the energy crisis is also threatening the eurozone,
while the growth of Asian economies, especially China, is slowing.

The US Federal Reserve’s preferred measure of inflation,
the core personal consumption expenditures (PCE) price index,
is expected to have subsided in July,
following consumer price index figures that fell short of last month’s expectations,
and an unexpected fall in producer prices.

Consumer and producer price growth declined in July largely
due to lower gasoline prices,
and Friday’s personal consumption expenditure report is likely
to follow this inflation trend.

The core PCE index, which excludes volatile food and energy prices,
is expected to rise by 0.3 percent from a monthly gain of 0.6 percent in June.

In most European exchanges, stock prices fell last week because inflation
in the eurozone reached a new record,
so the ECB says it will raise interest rates significantly again soon.

The London FTSE strengthened by 0.6 percent to 7550 points,
the Frankfurt DAX declined by 1.8 percent to 13544 points
and Paris CAC also declined by 0.9 percent to 6495.

On the Tokyo Stock Exchange,
Japan’s Nikkei 225 index rose by 1.3 percent to 28,930 points.

Oil continues to decline due to the impact of sanctions on Russian supply and demand

Oil prices may continue to cause some harm to the global economy for many reasons,
and the possibility of crude oil prices rising and re-testing previously seen highs
or at least approaching USD 106-107 cannot be ruled out.

Crude oil prices eased in the past two weeks,
after surpassing the $100 per barrel level earlier this year,
after two days of gains, oil prices fell on Friday amid concerns of a slowing global economy.

Brent crude is approaching $94, with $106/107 being a critical level to watch out for.

Note that this level has been breached three times in the past four weeks,
and the price of Brent crude has now fallen due to the stronger dollar,
which in turn has reflected in the price of oil.

The second factor behind the easing of crude oil prices
was that oil demand from the largest consumers,
China and India, was gradually declining.

According to analysts,

Russia’s sanctions will remain in place longer than expected,
and this will always affect supply and demand dynamics and thus price.

In addition, OPEC +’s ability to expand production and supply is minimal,
and cannot be expanded in the short term as investments in this sector
have not been made in the past few years.

Finally, while there is a concern about a slowdown in global economic growth,
there may not be a deep recession,
and therefore there may not be much demand slump
that will occur compared to the situation during the pandemic.

artical name World stocks decline over the past week

What will a nuclear deal with Iran mean for tense oil markets?

Analysts say the European Union’s embargo on seaborne Russian oil,
which is due to enter into force on December 5,
gives the bloc an additional incentive to secure an agreement
that would ease sanctions on Iranian oil.

A recent attempt by Europe to revive the Iran nuclear deal has sparked speculation
that millions of barrels of oil could soon flow into global markets,
although analysts and experts are mitigating their optimism.

Tehran responded this week to a “final” proposal to reinvigorate the 2015 deal,
and the EU is now consulting with the US on “moving forward.”
As the last chance to salvage the deal,
the plan aims to limit Iran’s nuclear activity in exchange for sanctions relief,

i ncluding sanctions on its oil.

artical name World stocks decline over the past week

World stocks decline over the past week

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