Wall Street indices jump to all time highs and oil is progressing at a steady pace


Wall Street indices jump to all time highs and oil is progressing at a steady pace

Wall Street indices jump to all time highs and oil is progressing at a steady pace: Oil continues to progress this week, after rising at its all-time highs since last August, as investors seem to be assured of the epidemiological situation, after the pacification on the new Omicron variant. 

Evest follows market developments in the following report.


Oil keeps rising But it’s still far from its highest level this year

US indices renew their all-time high

Nikkei rises and China is recovering

Chinese stocks extend gains

Oil keeps rising But it’s still far from its highest level this year

Oil prices keep rising on Monday after the highest rise they reached last week since August.

The February futures cost for Brent crude on the London Stock Exchange ICE Futures,
is $76.063 per barrel, which is $0.91 (1.21%) higher than the closing price of the previous session.

As a result of Friday’s trading, these futures rose by $0.73 (1%) – to $75.15 per barrel.

The price of West Texas Intermediate crude futures for January in electronic trading on the New York Mercantile Exchange (NYMEX) at this time is $72.68 per barrel,
$1.01 (1.41%) higher than the final value of the previous session.

By the end of Friday’s trading, the value of these futures had increased by $0.73 (1%) to $71.67 per barrel.

At the end of last week, the price of Brent crude has risen by 7.5% and West Texas Intermediate by 8.2%.

According to experts, oil prices rose significantly during the week as concerns over the spread of the new Covid-19 strain, Omicron, while the economic outlook for 2022 remained largely unchanged.

In the meantime, the U.S. Department of Energy approved the first version of the Strategic Petroleum Reserve (SPR) of 4.8 million barrels of oil. 

The Department of Energy said ExxonMobil’s supplies will be made available through the Bryan Mound, West Hackberry and Bayou Choctaw storage facilities.

Earlier, it was reported that the ministry planned to return the sold oil to the Strategic Petroleum Reserve in 2022-2024.

US indices renew their all-time high

US stock indices rose by 0.6-1% on Friday, while simultaneously renewing their all-time highs.

During the week, Standard & Poor’s index rose by 3.8%, and the Nasdaq rose by 3.6%, the highest since February.

The Dow Jones index rose by 4% over the week, the highest since March.

According to the United States Department of Labor, the Consumer Price Index (CPI) in the United States rose in November by 6.8% on an annual basis, the highest level since 1982. 

Thus, inflation accelerated from 6.2% the previous month and was in line with the expectations analysts surveyed by Bloomberg.

Strengthening inflation suggests a likely rapid decline in the Fed’s asset buyback program,
but the stock market has risen thanks to investors’ hopes that the rate of price growth has already reached or is too close to peak values. 

The CPI remained above the Federal Reserve’s target of 2% for the ninth month in a row.

Prices excluding food and energy (the basic consumer price index) rose 4.9% on an annual basis, the highest jump since June 1991.

The consumer confidence index at the University of Michigan rose to 70.4 points in December, with expectations of a decline to 67.1 points from 67.4 points in November,
the lowest level in 10 years, according to Trading Economics.

In the meantime, At the same time,
inflationary projections for the medium-term next year) remained at 4.9% for the current month, and for the long term (5 years) – at 3%.

Nikkei rises and China is recovering

Exchanges also grow on Monday.

Japan’s Nikkei index rose by 0.8%, China’s Shanghai Composite Index rose by 1%,
and Hong Kong’s Hang Seng Index rose by 1%.

The Tokyo Stock Exchange closed on Monday with a profit,
thanks to a positive Tankan report from the Bank of Japan, which shows that confidence among major Japanese companies has stabilized at its highest level since late 2018,
providing some support for trade.

Large Japanese companies are becoming less optimistic about the coming months because of uncertainty about the Omicron variant’s impact.

In addition, the main focus has been on interest rate meetings of central banks in the United States and Europe, to be held later this week. 

The Bank of Japan will also make an interest rate decision at the end of the week.

Tokyo’s Nikkei Leading Index closed higher by 0.7 percent at 28640.49 points.

Chinese stocks extend gains

China’s stock markets made gains after Beijing announced it would prioritize economic stability in 2022

For example, China is set to cut taxes and increase infrastructure investment next year,
policymakers said at the end of the three-day annual Central Economic Work Conference. 

This boosted hopes for further stimulus to the world’s second-largest economy. 

China’s troubled real estate sector came under pressure after senior Communist Party policymakers confirmed after the annual conference that “homes are a living place, not a speculative element.” 

The stock of troubled real estate giant Evergrand fell by 2.8 percent in Hong Kong.

Shimao’s stock fell by 14 percent due to concerns about the financial position of the Chinese developer.

The tense relationship between China and the United States has been brought into focus  

Sense Time said it was postponing its initial public offering in Hong Kong after Washington blacklisted the AI firm.

As a result, Americans are no longer allowed to deal with Sense Time,
which will debut in Hong Kong next Friday. 

Washington accuses the company of creating an anti-Uighur facial recognition program in Xinjiang.

The United States accuses China of committing genocide against Uighurs in the region.