American and Asian indices are in the red area..Losses extend to everyone


American and Asian indices are in the red area..Losses extend to everyone

American and Asian indices are in the red area..Losses extend to everyone:

As US Joe Biden’s statements supported stock markets before,
they are negatively affecting them today, as investors are waiting for hearing a $ 2.25 billion plan to stimulate infrastructure.

Biden is planning for a big tax increase and issuing more treasury bonds.

This matter makes investors worried.

Evest is daily following up developments in global markets.


Oil rebounds slightly high waiting for OPEC’s decision tomorrow

Crude oil rebounded before OPEC + meeting today, as the group will decide its own production policy.

Alliance is expected to be cautious about increasing supply, given short-term concerns about demand.


Oil prices slightly rose today’s morning, as North Sea Brent recorded $ 64.44 a barrel.

This is 24 cents more than the previous day.

The price of US crude with West Texas Intermediate mark rose by 29 cents to record $ 60.84 a barrel,
after falling by 1.6% on Tuesday.


After the situation returned to its nature in Suez Canal,
which was closed by a giant container ship for some days,
the focus has become on meeting major oil-producing countries.

OPEC + delegates will meet on Thursday for discussing their production policy.


A default meeting of OPEC+ countries will be held to decide production policy,
as oil suppliers of this alliance will decide volumes of production in May.


OPEC + estimates that a surplus of crude oil was formed in oil markets during the Covid-19 pandemic,
but it may decline during the next quarter of the year.


Analysts expect that OPEC’s alliance will maintain its cautious stance on increasing supply
due to short-term concerns regarding demand.


Until now, main defender of OPEC’s cautious approach was Saudi Arabia,
one of the two main leaders of the group, along with Russia.


Energy Minister, Prince Abdulaziz bin Salman said that, given risks to consumption still posed by closure,
a conservative position should be adopted.

He also added that high prices would not lead to a coordinated increase in the supply of rock oil producers in the United States.


Meanwhile, Saudi Aramco company, a state-owned oil giant, is expected to raise the official sale price of Arab Light crude for May deliveries by 30 cents a barrel, in line with an average estimate prepared by refining companies.

The upward amendment continues despite a continued flow of Iranian oil to China,
in addition to the difficult circumstances of many Asian refineries.


Data, as well as economic expectations, continue to refer to a recovery,
which by its turn promises good for oil demand.


In Asia, the official Chinese production index, above expectations,
rose 51.9 in March. Next week, IMF will update its global growth expectations-supported by better ones
of the United States and China- with warning of a continuing closure that may slow recovery.


In recent weeks, crude oil has been declined, making up for quarterly growth,
besides the hard-line situation in some parts of the world before the widely expected recovery in demand.


Tighter closures in parts of Europe have been revealed.

Road traffic and fuel consumption figures have been retreated, while in the United States,
IHS Markit data show that gasoline sales have fallen by 16%.

In addition, rising the value of the dollar has had a negative impact on the prices of the main commodities.


Losses extend to Japanese and Chinese Exchanges

Tokyo Stock Exchange closed down for the first time in five sessions in a row on Wednesday,
following Wall Street’s trend on the previous day, against the backdrop of another increase in US bond yields for 10 years,
which reached 1.77%.

It is the highest level in 14 months, before falling overnight.


Nikkei index lost 0.86% to record 29178.80 points, while Broader Topix index fell by 1.21%, to trade at 1954 points.


Tokyo lost affected by the banking sector after Mitsubishi had announced a loss of $ 300 million with regard to the collapse of the ArChegos Hedge fund.


On Tuesday, New York Stock Exchange closed in the red area,
affected by the 10-year appreciation of US bonds and strength of the dollar against other major currencies.

On Tuesday, the dollar exceeded the 110-yen barrier for the first time since March 2020.


Investors in Tokyo were also taking a wait-and-see stance before US President Joe Biden announces details of his massive infrastructure investment plan, expected to be announced today.


In Japan, industrial production also fell by (-2.1% in a month)

more than expected in February, following a strong recovery in January,
according to preliminary data released on Wednesday morning.


In Hong Kong, Hang Seng Index fell by 0.28%,
while Seoul declined by 0.3%, but Sydney retreated by 0.8%.


Shanghai closed down by 0.43% and the Shenzhen index closed down by 0.52%,
despite the fact that China’s manufacturing index rose above expectations to $ 51.9 in March.


US main indicators are trading down

Major US indexes closed down. Dow Jones index fell by 0.31% to close at 3,3066.69 points.

Standard and Poor’s 500 indexes decreased by 0.32% to record 3958.55 points,
while the Nasdaq index slipped by 0.11% to reach 13045.39 points.


Investors are waiting to hear about the $ 2.25 billion plan to stimulate infrastructure and work which US President Joe Biden must reveal today, as well as to monitor effects on inflation.

It is a potential option that could have negative implications for stock prices.

Biden plans to a substantial tax increase and more treasury bonds, which make investors worried.