Oil reduces for the third session in a row, stocks are in the green area
Oil reduces for the third session in a row: Market participants are waiting for the Federal Reserve meeting which begins today and will continue till tomorrow so as to find the monetary policy which is expected to remain unchanged, in addition to identifying any new debt statistics regarding the performance of American economy.
The oil retreats for the third session in a row
The oil prices respectively fell for the third session because of expectations of increasing inventories in the United States and precautionary stop from Germany, Italy, France, and Spain to use AstraZeneca vaccine, waiting for a judgment of European Medicine Agency.
Market participants expect the possibility of continuing growth in US inventories.
Oil prices have also been affected by the low demand for raw materials in Europe,
according to trading data.
Futures of US West Texas Intermediate fell by 0.96% to record $ 64.76 a barrel.
Futures of Brent crude oil also retreated by 0.9% to reach $ 68.26 a barrel.
Owing to severe cold weather which covered a number of American states in February, this year,
causing suspension in the work of many oil refineries, investors expect increasing oil reserves in storage facilities abroad.
Analysts also expected that these inventories may rise by 2.7 million barrels after they rose by 13.8 million barrels in the previous week.
Inventory data by US Petroleum Institute is supposed to be issued today,
while official data of inventories in the US Energy Information Administration will be released tomorrow.
The European Medicine Energy (EMA)
What makes the situation more complicated is, The European Medicine Energy (EMA) investigations into a number of incidents with European Union patients who received a vaccine from the same group of AstraZeneca vaccine, which by its turn led to some complications.
In this regard, Austria, Estonia, Lithuania, Latvia, Luxembourg, Denmark, Bulgaria, Norway, Iceland, Slovenia, Cyprus, Italy, France, Germany, and Spain stopped using this vaccination.
Actions taken by these countries led to increase tensions in markets regarding vaccinations of the world population.
According to analysts, this incident can slow down European economic recovery after Covid-19 and prevents the return of oil demand.
While this position raises concerns about the pace of vaccination efforts in European countries, it also boosts fears of delaying economic recovery in Europe,
which is one of the most affected areas of the epidemic.
Japanese Nikkei rises
On Tuesday, Tokyo Stock Exchange closed in the green area for the sixth session in a row,
as technology shares were recovered because of Nasdaq’s recovery on the previous day in New York, but investors had been enthusiastic waiting for Federal Reserve Bank’s meeting.
The main Nikkei index
The main Nikkei index ended its trading in gains by 0.52% to record 29921.09 points,
while the broader Topix index rose by 0.65% to reach 1,981.50.
Wall Street American Technology stocks
On Monday, Wall Street American Technology stocks were recovered after they suffered from rising US bond revenues and inflation concerns in previous sessions.
Tokyo
In Tokyo, investors as in Wall Street were relatively waiting for these concerns before hearing new comments from Federal Reserve,
in addition to macroeconomic expectations.
China’s stock markets & Hang Seng Index in Hong Kong
On the other hand, on Tuesday afternoon, China’s stock markets were also in the green area,
due to rising Hang Seng Index in Hong Kong by 0.32%.
ASX 200 index rose by 0.8% or 54.1 points to close at 6827.10 points.
Wall Street Journal
According to Wall Street Journal, authorities in Beijing asked Ali baba to sell media assets,
for fear of growing influence on the group founded by Jack Ma on Chinese public opinion.
In Hong Kong, Alibaba shares fell by 0.18%.
Expectations for a recovery in DAX, today
Yesterday, European stocks retreated, as Germany stopped using AstraZeneca vaccines,
on a background of reports that they caused blood clots in some patients.
On Tuesday, in pre-trading hours, the DAX index rose by 14500 points.
Before 2 hours of trading, IG is estimated up by 0.3%.
This means that the DAX index is still within sight of its highest level that it reached at 14595 points from last week.
US Three indicators are in a green area
This week began a good start in Wall Street, as some optimism was previously ahead of Fed’s monetary policy meeting.
Continued growth hopes have remained to smash record figures in Wall Street on Monday.
Dow Jones Industrial, Standard and Poor’s 500
Dow Jones Industrial, Standard and Poor’s 500 were rising once again in a short time before closing trading,
as they both reached their highest levels.
American Main Dow Jones index rose by 0.53% to record 32953.46 points.
Now, Its highest record is 32973 points.
Standard and Poor’s 500 indexes rose by 0.65%, to trade at 3968.94 points.
Among Technology indicators, Nasdaq 100 index has been able to increase by 1.12% to record 13082.54 points.
The Federal Reserve meeting
At the end of the Federal Reserve meeting which will continue for 2 days on Wednesday,
it is expected that US Central Bank will repeat its current accommodative monetary policy,
as investors are waiting for expectations regarding the health of the economy.
New York Investment Bank
According to New York Investment Bank, Goldman Sachs,
growth in the United States is supposed to reach 7% this year,
while currently, the consensus is only a rise in activity by 5.5%.
It depends on a new plan to support the economy through infrastructure investments, which this time can exceed $ 2 trillion, or even $ 4 trillion,
including sectors such as health or education.
In terms of statistics, the Empire State index for the industrial activity of New York Federal Reserve Bank rose by 5 points this month,
to trade at +17.4, which is its highest level since last summer, while the consensus expected less obvious gains.