Oil rises gold is volatile and Global stock markets are unstable


Oil rises gold is volatile and Global stock markets are unstable

Oil rises gold is volatile and Global stock markets are unstable:

The Chinese Evergrande crisis returned to the spotlight once again,
as it did not sell the major real estate unit that would have solved a large problem of its bad debts. 


Evest follows all this in the following report.


Global stock markets are unstable

US indices are mixed

China’s Evergrande negatively affects markets in Asia

Oil turns into decline and Brent sticks to the $85 level

Gold fluctuates as Bitcoin had a key role

Today’s agenda


Global stock markets are unstable

The overall morale of the market was supported by the publication of the Fed’s “Big Book”:

In the quarterly regional economic review,
the regulator noted that the US economy grew in September and early October at “modest or moderate” rates,
despite increasing inflationary pressure,

and forecasts “remained generally positive” in most regions of the country.

However, conservative sentiment prevailed on Thursday morning in world markets again.

US and European index futures are declining moderately,
as are major Asian stock markets,
resulting in the recovery of IBM and Tesla financial statements’ forecasts that did not satisfy investors,

as well as negative news about China’s Evergrande (the company was unable to sell one of its departments),
compounding its financial position.

Stock markets on Thursday are likely to spend most of the day in consolidation, 
and the mood will be determined at the end of the day by a set of US statistics that could correct assessments of the US consumer’s status.

The US indices are mixed

With strong corporate reporting, the Dow Jones stock index rose (+ 0.4%) .

and the Standard & Poor’s 500 (+ 0.4%), and the Nasdaq fell (-1.05%) in the United States on Wednesday.

The Dow Jones Industrial Index rose by 152.03 points (0.43%) to 35609.34.

Standard & Poor’s 500 rose by 16.56 points (0.37%) to 4536.19 points.

The Nasdaq Composite Index declined by 7.41 points (0.05%) to 15121.68.

US corporate reports show that rising raw materials prices and labor shortages have no serious impact on corporate profits.

The Big Book regional economic survey,
published by the Federal Reserve System (FRS) on Wednesday,
showed that the US economic activity in August-September grew at a moderate (modest) to moderate (moderate) rate. 

In the meantime, the review indicates problems in supply chains,
as well as labor shortages caused by COVID- 19,
limited economic growth and contributed to increased inflation.

US treasury yield growth was the limiting factor for the US stock market on Wednesday:

The interest rate on the US 10-year Treasury bond rose during trading to 1.673%,
the maximum since May.


China’s Evergrande negatively affects markets in Asia

A decline in indices prevails in Asia, with Japan’s Nikkei declining by 1.9%,
China’s Shanghai Composite rising by 0.2%,
and Hong Kong’s Hang Seng declining by 0.7%.

Evergrande Group, the debt-laden Chinese property developer,
declined by more than 11% after it was reported that the company had abandoned plans to sell a controlling stake in Evergrande Venture Services Group for $2.6 billion.

Oil turns into decline and Brent sticks to the $85 level

Prices fall Thursday morning after rising the day before.

Brent crude futures’ cost for December was $85.17 per barrel (0.8٪ and + 0.9٪ on Wednesday),

and West Texas Intermediate crude for December was $83.01 per barrel -0.5٪ and + 1.2٪ the previous day).

Prices during the previous trading were supported by fuel reserves data in the United States of America.


According to the United States Department of Energy

According to the United States Department of Energy,
the country’s oil reserves last week declined by 431 thousand barrels (2 million barrels were expected to rise),
gasoline inventory declined by 5.37 million barrels (0.95-2.2 million were expected to decline),
and distillate reserves declined by 3.91 million barrels (1.15-2.4 million were expected to decline).

In addition, inventories at the terminal in Cushing,
Oklahoma, where NYMEX-traded oil is stored,
has fallen by 2.32 million barrels over the past week.

Refinery use fell to 84.7% from 86.7% the previous week.

The day before, data from the American Petroleum Institute (API) indicated an increase in US oil inventories
by 3.3 million barrels for the week ending October 15.

API receives information from refinery operators, storage tanks, and pipelines on a voluntary basis.



Gold fluctuates as Bitcoin had a key role

Gold trades around the region from $1760 an ounce to $1790 an ounce.

The reason is that financial experts on Wall Street focused on cryptocurrency assets, Bitcoin. 

The US Securities and Exchange Commission (SEC) and the United States Department of Treasury give the green light to Bitcoin exchange
(which means buy/sell) and pay the money injected into a Bitcoin ETF. 

The US dollar index fell by 0.8 points (1.02%) because the Fed had not issued any significant indication
that quantitative easing would slow down soon and that the interest rate would rise.

There will be two more speeches from the Fed Chairman during this week that will affect the US economy.


The Gfk Consumer Climate Index today, Thursday, which is expected to fall to minus 1.6 points will be published in Germany  

In the United States, there will be traditional weekly data on initial unemployment benefit claims. 

The Federal Reserve’s Industrial Activity will release Index in Philadelphia,
which could have fallen to 24.5 points in October from 30.7 points in September,
After that, there will be sales data on the secondary domestic market in the United States,
as well as the index of leading economic indicators, which could have risen by 0.4% in September.