Negative beginning of a week for oil… A major decline for Japanese Nikkei


Negative beginning of a week for oil… A major decline for Japanese Nikkei

Negative beginning of a week for oil: The beginning of the week witnessed a contrast in global markets, as oil has completed its decline after a cruel week of losses, while Asian stock exchanges have expressed different trades and expectations of European market decline at the opening.


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Oil begins this week down

Oil prices retreated at the beginning of trading days today after they showed the maximum decrease since last October during last week.


Brent futures for May delivery

The cost of Brent futures for May delivery in the London stock exchange reached $ 64.24 a barrel,
which is less than $ 0.29 (0.45%) for a closing price of the last session.

Brent crude has been rising by $ 1.25 (2%) to record $ 64.53 a barrel.


West Texas Intermediate

The price of West Texas Intermediate for April in electronic trading on New York Mercantile Exchange (NEMEX) reached $ 61.21 a barrel, which is less by $ 0.21 or (0.34%) than Friday’s session.

On Friday, the value of these contracts rose by $ 1.42 (2.44%) to record $ 61.42 a barrel.


Last week, Brent crude retreated by 6.8%, while West Texas Intermediate fell by 6.9%.

On Thursday, oil prices showed the largest decline in percentage since June, as Brent crude oil fell by 6.9%, while WTI fell by 7.1%.


Standard & Poor’s Global Platts

Standard & Poor’s Global Platts announced that this decline helped to create an atmosphere of uncertainty in the market where investors are wondering about the sustainability of this rally this year.


The epidemiological situation in Europe is also putting pressure on prices.

On Thursday, French Prime Minister Jean Castex announced strict restrictions in 16 provinces of the country for 4 weeks.



According to Bloomberg, German Chancellor Angela Merkel is preparing to extend the closure for another 4 weeks.


Traders began to show some fears because slow vaccination has raised questions about how quickly the epidemic will be controlled in the region, while European countries are considering a third wave of closures.


Some analysts also believe that the market is concerned about OPEC + meeting in April.

OPEC+ procedures to decrease production have become essential in supporting oil prices but recovery of production may lead to their decline.


US oil services company

Meanwhile, US oil services company Baker Hughes data which were published last Friday,
showed an increase in the number of operating oil platforms in the United States by 9 units last week to reach 411 ones.


International Energy Agency (IEA)

For its part, International Energy Agency (IEA) raised its oil expectations for the first time in 6 months.

Analysts expect global demand to be 96.5 million barrels a day.


During the first quarter of the year, unnatural cold weather in Europe, North Asia, and the United States have increased consumption.

As a result, approximately 3.5 million barrels a day of US supplies were temporarily decreased.


However, OPEC decided not to be rushed to increase production in April.

The exception is both Russia and Kazakhstan, which were allowed to add 130,000 and 20,000 barrels a day in a row.


Nikkei shows a strong decline

At the beginning of the week, North Asia Exchanges showed a mixed trend.

Nikkei 225 index showed a strong negative trend, as it retreated by 1.8% to trade at 29252 points.

Japanese Bank’s (BoJ) decision to expand its targeted returns, is also considered a burden.

Investors see it as a possible entry into raising interest rates.

On this background, auto and technology shares particularly show strong sales at times.

In stock markets in Tokyo, Subbarao stocks fell by 2.6%.

Manufacture of Sensors, Keynes shares retreated by 4.6%.

After firing in a factory, which caused a stop in production, Renesas Electronics stock decrease by 4.8%.


Shanghai is recovering from its recent losses… Mixing for the rest of the indicators

On the other hand, China’s stock Exchanges are rising, as Shanghai Composite Index rose by 1.0%,
after being under heavy pressure on Friday.


However, participants talk about a prolonged trade in general.

In addition to growing revenues, there are other factors that affect the market,
such as continuous concerns regarding US-China relations after high-level talks last week.

Hong Kong

In Hong Kong, Hang Seng Index has shown minor gains of 0.1%, while in Seoul, the Kospi index lost 0.2%.

In general, shares of the aviation and chemical sectors are exposed to sale pressure.


In Australia, S&P /ASX 200 index rose by 0.6%.

This index has been rising again for the first time after the last three trading days which have been dominated by retray.


Expectations for European market’s opening on a decline

European stock markets are heading into the low opening on Monday,
after US major banks came under pressure on Friday evening,
following the Federal Reserve Bank’s decision to repeal some of the exceptional rules.


Experts expect an opening loss of about 41 points for German DAX,
a minus 13 points for French CAC, and a decline of 16 points for the British Footsy index.


European stock markets

On Friday, European stock markets fell after intensive sellings in Wall Street Thursday,
as fears regarding inflation continued to influence markets.


Inflation concerns have been the widest factor behind the market sentiment, as bond revenues are still in the spotlight.

US Ten years bond yields rose to their highest levels during 14 months on Thursday.


The pandemic of Coronavirus “Covid-19” is still a source of tension, as Paris is preparing for closing for a month,
in addition to fears that France is on a brink of a major wave of viral infections.


The spread of vaccines in the European Union is expected to be increased
after a conclusion of the European Pharmaceutical Agency that the vaccine developed by AstraZeneca
and Oxford University is safe and effective.