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A positive day for stock markets

A positive day for stock markets.. Oil is breathing a sigh of relief despite increasing stocks

A positive day for stock markets.. Oil is breathing a sigh of relief despite increasing stocks

A positive day for stock marketsInvestors continued to monitor progress in the adoption of a new large-scale economic stimulus package in the country.

At the end of last week, Senate voted for President Joe Biden’s plan
worth $ 1.9 trillion in addition to a series of amendments
and it was returned to the House of Representatives
as it was approved in a final vote during the previous day.

Biden is expected to sign for law next Friday.

 

Evest is daily following up developments in the economic arena and their effects on trading.

 

Oil rises in spite of increasing US Inventories

Today, oil prices rose after yesterday’s gains.

Market observers said that the last rise in oil prices is linked to the development of The US stocks.

Brent North Sea crude oil

On today’s morning, Brent North Sea crude oil has been trading at $ 68.30 a barrel, rising by 40 cents than on Wednesday’s trading. West Texas Intermediate crude oil rose to record $ 64.88.

 

Rising prices were driven by expectations that the US consumer price index will be an expected level
and contribution of vaccination efforts in the economy will appear in short term.

Approval of a $ 1.9 trillion support package

Approval of a $ 1.9 trillion support package by the House of Representatives to reduce the effects of a new type of Coronavirus Covid-19 pandemic on the US economy, led to an increase in prices.

US President Joe Biden is expected to sign up for the support package on Friday.

the US government

The market had interacted with a sharp decline in gasoline reserves in the United States.

According to the US government, on Wednesday, gasoline reserves reduced by about 12 million barrels last week.

This is much more than that was expected by analysts.

 

Low gasoline reserves can be an indicator of an increase in demand.

However, a more than expected increase in US crude oil reserves has also been reported.

US inventories

US inventories data initially caused significant fluctuations in oil market prices, but they finally rose.

Growth in crude oil reserves is likely led to reducing high prices, according to experts.

Oil inventories

Oil inventories increased by 13.8 million barrels during the week ended on March 5,
according to US Department of Energy data which was released on Wednesday.

A week ago, the jump in reserves amounted to 21.6 million barrels.

analyst at Data Clipper

Matt Smith, an analyst at Data Clipper said that US oil production which was declined
because of low temperature in Texas, last month has been returned to previous levels,
while refineries have not fully recovered production.

S&P Global PIatts

In a survey conducted by S&P Global PIatts, experts expected an average increase in US oil inventories by 2.7 million barrels,
last week, in addition to a decline in gasoline inventories and distillation products by 4.8 and 3.8 million barrels in a row.

US Ministry of Energy

According to the US Ministry of Energy, oil production in the United States rose by 900,000 barrels a day to reach 10.9 million barrels a day.

 

Since the start of this year, oil prices have increased by more than 30%,
against the background of declining supply, especially, due to limited production by the Kingdom of Saudi Arabia.

Saudi authorities

On other hand, on Wednesday, Saudi authorities pledged to take necessary actions to protect oil infrastructure after another attack on the export terminal at Ras Tanura port.

As repeatedly, on last Sunday, export terminal which is the largest one in the world,
was attacked by an unmanned plane.

This attack blamed the Yemeni Houthis.

 

The collective rise in Asia indicators

Asian stock markets are affected by the United States support package,
especially after it was approved by US Senate.

 

In Japan, the Nikkei index rose by 0.5%, while the broader Topix index rose by 0.1 %.

In China, Shanghai Composite and CSI 300 indexes rose by 1.9% and 2.2%, in a row.

Hong Kong, Hang Seng Index rose by 1.6%.

In South Korea, the Kospi index rose by 1.9%, while in Australia, S&P /ASX 200 index was stabilized.

Singapore’s index rose by 0.9%.

 

Wall Street is trading in the green area

Three indicators in Wall Street rose yesterday.

The rise in prices took place after the House of Representatives had voted
for a rescue package worth $ 1.9 trillion

that was presented by President Joe Biden and by its turn will rebuild the country’s economy after the Corona crisis.

 

As a part of this package, most Americans will receive a new check from the state for the third time in a row.

This time, the check is worth $ 1400, but there is an income limit for those who can get money.

Dow Jones index

Dow Jones index rose by 1.45% to record 3,1295.7 points, up by 5.5%, this year.

Standard & Poor’s 500 index closed up by 0.60% to reach 3898.7 points.

This means that the index rose by 3.8% since the beginning of the new year.

Nasdaq Composite

Nasdaq Composite Index for technology, retreated by 0.04% to record 13068.8 points.

This index rose by 1.4%, so far, this year.

 

Shares of a number of leading technology companies were down after a strong rise in prices on the previous day.

Value of Apple Manufacture of iPhone retreated by 0.9%, while Facebook,
the largest social network fell by 0.3%, but the Amazon index rose by 0.2%.

Labor Ministry

In February, consumer prices in the United States rose by 1.7%, on an annual basis, according to a report by Labor Ministry in the country.

Thus, inflation is accelerated compared to 1.4% during January.

It seemed that it was the highest level last year.

 

On a monthly basis, prices rose by 0.4%.

Meanwhile, prices except for the cost of food and energy (basic consumer price) rose by only 0.1% in February compared to January and rose by 1.3% year-on-year, while analyst’s expectations assumed an increase of 0.2% and 1.4% in a row.

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