A considerable decline in the US budget deficit

2022-04-13T18:09:22
Oil News Oil prices us budget
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A considerable decline in the US budget deficit and oil declines as inventories rise

The United States Department of the Treasury said that the US budget deficit fell by 71% to $193 billion
in March compared to $660 billion in the same month last year

Evest follows market developments in the following report

 

topic
The US budget deficit fell 71% in March

Oil falls following US inventories rise

Dow Jones rises half a percent

Forecasts for FTSE opening lower

 

The US budget deficit fell 71% in March

Budget revenues jumped 18% to $315 billion
and revenue growth was driven largely by higher tax revenues under the economic recovery

In the meantime, expenditures fell by 45% compared to last year – to $508 billion
due to a reduction in state support measures
Last year, the government paid Americans $1400 per person in stimulus benefits under Covid-19 in March

In the meantime, the negative balance of the US budget fell by 61% in the first half of fiscal 2022
which began on October 1, compared to the same period a year earlier, to $668 billion

Since the beginning of the current fiscal year, the budget’s income has been $2.1 trillion, setting a new biannual record

The negative balance of the US state’s budget by the end of the fiscal year 2021
which ended on September 30, fell by 11.4% and reached $2.776 trillion (or 12.4% of GDP)
A year ago, there was a record deficit of $3.1 trillion

The last time we witnessed the country’s budget surplus was in 2001

 

 

 

 

Oil falls following US inventories rise

Oil prices fell moderately on Wednesday morning after a jump the previous day
Data from the American Petroleum Institute on US inventory growth last week supports investors

Brent crude futures for June fell by $0.15 (0.14%) on the London Futures Exchange, to $104.49 per barrel
Brent crude rose by $6.16 (6.3 percent) to $104.64 per barrel on Tuesday

By this time, West Texas Intermediate crude futures’ prices for May in electronic trading for the New York Mercantile Exchange
(NYMEX) fell by $0.29 (0.29%), to $100.31 per barrel
During the previous session, the futures contract rose by $6.31 (6.7%) to $100.6 per barrel

US oil inventories rose by 7.8 million barrels in the week ending April 8, according to data from the American Petroleum Institute
Experts expected an average increase of 1.367 million barrels according to Trading Economics

In the meantime, the gasoline inventories fell by 5.1 million barrels and distillates by 5 million barrels

Inventories in reservoirs in Cushing and Oklahoma, where oil traded on the New York Stock Exchange is stored, rose by 375 thousand barrels

Market participants await the release of official data on the status of the United States’ oil reserves from the Department of Energy
Analysts at S&P Global Commodity Insights expect oil reserves to rise by 300 thousand barrels
as well as gasoline reserves by 800 thousand barrels and distillates – by 1.5 million barrels

 

 

 

 

Dow Jones rises half a percent

Dow Jones rose on Wednesday, along with Standard & Poor’s and Nasdaq futures
The stock market opened strongly higher on Tuesday, as the consumer price index raised hopes that inflation had peaked
but major indexes reversed downward as a senior Fed official pointed to sharp rate increases and other stocks were ahead

Dow Jones futures rose by 0.5% of fair value
S&P 500 futures rose by 0.5%, and the Nasdaq 100 index futures rose by 0.7%

The 10-year Treasury yield rose 2 basis points to 2 .75%

Tesla stock rose on Tuesday morning, again breaking above its 21- and 50-day lines, respectively, inside the handles
But Apple and Tesla stocks reduced their gains as the overall market faltered

 

 

 

Forecasts for FTSE opening lower

The FTSE 100 is expected to fall 20 points now
following the release of UK inflation figures showing that the Consumer Price Index (CPI) accelerated to a new 30-year high of 7% in March
meaning the family’s finances are under more pressure than expected

Core CPI rose from 6.2% in February, ahead of economists’ expectations of 6.7%

This resulted in the biggest fall in real wages since 2014, with wage data published yesterday revealing a rise of just 5.4%

The Office for National Statistics also revealed that core inflation, which excludes more volatile prices such as energy
food and alcohol prices, rose to 5.7% from 5.2% and also above expectations of 5.4%, which were also 30-year highs

Fuel price rise of 9.9% month-on-month in March was a significant contributing factor to the consumer price index’s main rate rise
the largest ever monthly rise

Fuel inflation is now 30.7% compared to last year, while food and drink inflation rose to 5.9% from 5.1%
now its highest rate since September 2011

There is a strong expectation that inflation will be the highest in thirty-odd years and is clearly often priced right now
the data coming through an undoubtedly quiet holiday seems to help, too, not a barrier

Yesterday’s UK unemployment data, which fell to 3.8%, matched the levels seen in 1975
and at the end of 2019 was likely the only silver lining in what is likely to be a difficult summer for UK consumers
such as the UK economy

In Asia, Japan’s Nikkei rose by 1.64% to 26,767, while Hong Kong’s Hang Seng gained 0.75% to 21,482

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