A bad day in Wall Street.. Oil is rising, supported by expectations of increased demand from China 2021-04-29T18:02:05 A bad day in Wall Street.. Oil is rising, supported by expectations of increased demand from China A bad day in Wall Street.. Oil is rising, supported by expectations of increased demand from China : On Wednesday, at their interest rate meeting, monetary observers in the United States stuck to their historically lax monetary policy- as it was generally expected, prompting markets to interact with this event. Through the following lines, Evest is following up the echo of this decision on markets, in addition to the latest developments in the oil market. Oil is taking advantage of increased demand from China Today, oil prices rose amid signs of rising demand for oil in major markets. The cost of Brent crude futures for June in the London Futures Exchange reached $ 67.44 a barrel, $ 0.17 (0.25%) higher than the closing price of the previous session. As a result of Wednesday’s trading, these contracts rose by $ 0.85 (1.3%) to record $ 67.27 a barrel. The price of West Texas Intermediate crude futures for June in electronic trading in the New York Mercantile Exchange (NIMEX) reached $ 64.01 a barrel, $ 0.15 (0.23%) higher than the level at the closing of the previous session. Yesterday, the value of these contracts increased by $ 0.92 (1.5%) to record $ 63.86 a barrel. According to Bloomberg, in the United States, the demand index for petroleum products has increased to its maximum during 2 months. At the same time, US Department of Energy data, published yesterday, showed the maximum decrease in distillation inventories in the country since the start of March. The US Department of Energy The US Department of Energy announced that US oil reserves rose by 90,000 barrels last week. Gasoline inventories increased by 92,000 barrels, while distillation output inventories declined by 3.34 million barrels. China In China, fuel consumption may increase in light of the upcoming long weekend, as the population of the People’s Republic of China usually travel actively during holidays. Reuters According to Reuters experts, although the Covid-19 pandemic continues to hit several parts of the world, the demand for oil is steadily recovering thanks to increasing consumption in the United States and China’s mainland. Earlier this week, OPEC + countries retained their previous decision on April 1 to gradually increase production in May and July. OPEC + will decide production levels for August, by the end of June. While the prospects for better economic development in the leading industrialized countries support oil prices, prices have also been curbed at the same time by fears that the Corona crisis will continue to develop. In particular, it has been argued in the market that the sharp increase in numbers of new infections in India has alarmed investors, as South Asian countries are one of the world’s major importers of oil and they are struggling against Corona pandemic like any other region in the world. Although the increasing number of new Corona infections in India, Japan, and Brazil, for the first time, there is a growing hope that demand for oil will rise in the coming summer months. Progress in vaccination in North America and Europe was primarily responsible for this. A bad day in Wall Street Yesterday, the United States stock market performance was bad, as all 3 major indexes declined. The Dow Jones Industrial index closed 0.5% down at 33.820 points. The Standard and Poor’s 500 indexes recorded a further record high of 0.57% at 4201 points during trading, but it fell again at the end of trading and it retreated by 0.1% to record 4183.18 points. The heavy tech Nasdaq index fell by 0.42% to reach 13901 points. The mood did not help the fact that the United States Federal Reserve Board left the main interest rate at 0-0.25% and it did not change the assets purchase program too. Jerome Powell Fed Chairman Jerome Powell stressed that, despite the improvement of the economic situation, they were still far from being satisfied. The rapid reporting season is well underway, as Apple, Alphabet the parent company of Google, and also Facebook, have reported remarkable results. For his part, President Joe Biden put his $ 1.8 trillion plan to boost social spending and consider raising taxes on the richest population, at the Congress table. On the macroeconomic front, indicators of US GDP and demands for unemployment benefits are expected. In particular, investors are focusing on US private consumption figures during the first quarter of 2021, US outstanding house sales and the European Central Bank’s cash supply in March. Positive sentiments in Asian markets.. Tokyo is closed today For the second day, Asian markets gain, as investors are reassured by the investment plan announced by the US president, Joe Biden, besides the effects of US tech giants’ results on American markets. This satisfaction also comes from the absence of something new fundamental at the Fed meeting, which is not currently assessing the possibility of considering a planned decrease in economic support with the Covid-19 pandemic. In Asian markets, trading sentiments were good, as Shanghai Stock Exchange rose by 0.3%, while Hong Kong Exchange rose by 0.6%. Australian stock market rose by 0.3%, while the Korean Kospi and Singapore indexes are stagnant. The Japanese stock exchange is closed because of holidays. DAX may not be positively moving today The opening of European exchanges is expected to be positive today, supported by the assurances reached on Wednesday by the Federal Reserve and quarterly reports of tech giants which were higher than expected. June futures on FTSE Mib rose by 0.32%, compared to Eurostoxx 50 by 0.23, which are similar to the contracts of major European indicators. On the other hand, the United States Federal Reserve’s commitment to its historically lax monetary policy should not drive the German benchmark as it did in Wall Street on the day before.