Oil started the week with a new decline and Asian markets are trading in different directions

2021-11-15T17:13:59
Asian markets Oil Wall Street
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Oil started the week with a new decline and Asian markets are trading in different directions

Oil started the week with a new decline and Asian markets are trading in different directions :Uncertainty still hangs over global markets, including the oil market.

With recent data on U.S. inflation and other factors, investors are still rushing to invest in risky assets.

Evest follows market developments in the following report.

Topics:

Oil declines and loses most of last week gains

Multiple dynamics in Asia and Wall Street had a key role

Johnson & Johnson’s stocks and AMC are rising

Ali Baba and JD.com are rising because of the Singles’ Day Sales 

 

 

Oil declines and loses most of last week gains

Oil prices fell on Monday, while Brent crude fell below $82 per barrel.

Prices are under pressure by the dollar appreciation, worsening OPEC demand prospects and the potential for increased intervention by US authorities in the oil market,
according to Trading Economics.

Brent crude futures for January on the London Futures Exchange fell by $0.39 (0.47%), to $ 81.78 per barrel. 

On Friday, Brent price fell by $0.7 (0.8%) – to $82.17 per barrel.

By this time, December futures for West Texas Intermediate crude were cheaper in electronic trading on the New York Mercantile Exchange (NYMEX) by $0.37 (0.46%), to $80.42 per barrel. 

During the previous session, the future fell by $0.8 (1%) to $80.79 per barrel.

The Organization of the Petroleum Exporting Countries (OPEC), in its monthly oil market report,
did not change the outlook for oil demand growth in 2022 – at 4.2 million barrels per day,
but has diminished the prospects for demand growth for the current year by about 160 thousand barrels per day, to 5.7 million barrels per day, citing the impact of rising prices.

In the meantime, the American politicians continue to urge U.S. President Joe Biden and his administration to use oil reserves or suspend exports.

The appreciation of the US dollar, linked to higher inflation, has also led to lower oil prices.

The appreciation of the dollar results in a decrease in the purchasing power of market participants using other currencies.

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Multiple dynamics in Asia and Wall Street had a key role

Stock indices in the Asia-Pacific region show multi-directional dynamics on Monday. Japan’s Nikkei 225 is rising by 0.42%, while China’s CSI 300 is falling by 0.29%.

US S&P 500 futures are close to the previous day’s closing.

US stock indices rose on Friday.

Meanwhile, according to the results of the entire last week, the Dow Jones index lost 0.6%, the Standard & Poor’s fell by 0.3% and the Nasdaq index – 0.7%. 

Prior to that, the three indicators were completed “in the positive zone” for four weeks in a row.

Inflationary concerns and growth in government bond yields have a negative impact on investor morale.

However, there remains optimism about corporate profits despite continued supply chain turmoil.

The University of Michigan said on Friday that forecasts for this month’s inflation in the United States over the medium term (next year) rose to 4.9% from 4.8% in September.

 Meanwhile, the consumer confidence index that was calculated in November fell to the lowest level in the last 10 years – to 66.8 points from 71.7 points in the previous month. 

This came as a surprise to analysts who had predicted an average increase of 72.4 points.

US stock indices rose on Friday, while the Dow Jones industrial index exceeded 36 thousand points.

However, according to the results of the entire last week, it lost 0.6%, the Standard & Poor’s fell by 0.3% and the Nasdaq index 0.7%. 

Prior to that, the three indicators “in the positive zone” were completed for four weeks in a row, according to data from FactSet.

Inflationary concerns and growth in government bond yields have a negative impact on investor morale.

However, there remains optimism about corporate profits despite continued supply chain turmoil, according to MarketWatch.

According to some analysts, consumer confidence data were disappointing and potentially linked to inflationary forecasts.

However, she said that corporate profits were strong and third-quarter results were better than expected.

 

Johnson & Johnson’s stocks and AMC are rising

Johnson & Johnson has announced plans to split into two publicly traded companies.

The company will split the high-yield, risky pharmaceutical and medical device business into one company and the well-known,
and slow-growing consumer health care business into another. 

Based on this news, Johnson & Johnson stocks rose by 1.2% on Friday.

On the other hand, Adam Aron, CEO of AMC Entertainment, announced that the company has started selling movie tickets by accepting Bitcoin,
Ethereum, Litecoin, and Bitcoin Cash.

The cinema operator’s stocks rose by 1.4%.

Ali Baba and JD.com are rising because of the Singles’ Day Sales 

Despite the slow growth of consumer spending in the country due to the Covid-19 pandemic, Chinese shoppers spent $139.1 billion during Singles’ Day, breaking last year’s record.

China’s Ali Baba retailer index declined by 0.6 percent, while its rival JD.com rose by 2.1 percent.

From November 1 to 11, sales on the Ali Baba Group platforms totaled 540.3 billion yuan ($84.5 billion), breaking last year’s record.

Growth was 14%, 93% lower than last year.

JD.com earned 349.1 billion yuan ($54.6 billion) between October 31 and November 11.

It rose by 28%, while in 2020 growth was 32%.

On the other hand, Walt Disney’s stock fell 1.5% on Friday after falling more than 7% the previous day because of the investor disappointment over quarterly figures.

Book Holdings, which owns various travel services, fell by 1.1%.

The company announced the acquisition of Getaroom for approximately $1.2 billion, which provides hotel booking services to companies.

 

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