Chinese numbers support Asian stock markets
Chinese numbers support Asian stock markets and revive hopes for global economic recovery
Chinese numbers support Asian stock markets and revive hopes for global economic recovery:
Good quarterly numbers of US companies and hopes for getting imminent government aids supported markets again.
US new President Joe Biden expects Congress to approve an aid package of about $ 2 trillion to ease the consequences of Coronavirus.
This morning, economic hopes also come from China as producers prices in China rose in January for the first time in 12 months.
Today, the National Bureau of Statistics announced that the producer’s prices index has risen by 0.3% compared to last year.
Producers prices in China have not grown at the same pace since May 2019 as they are now.
Analysts estimate that this indicates an increase in growth momentum in China.
The Chinese economy is expected to grow at a rate of 8.4% this year.
Evest is following up on developments in global markets.
Has oil started a bearish correction?
Today, oil prices began to decline after a rise that lasted for several days on the back of the American Petroleum Institute
(API) data about a slowdown in decline in US inventories during last week.
According to American Petroleum Institute, US oil inventories of last week decreased by 3.5 million barrels.
The decline was noticeable for the third week in a row but at the same time,
it slowed down compared to last week when inventories retreated by 4.26 million barrels.
April Brent crude futures fell by $ 0.05 or 0.08% to record $ 61.04 a barrel.
On Tuesday, Brent crude rose by $ 0.53 at a rate of 0.9% to record $ 61.09 a barrel.
March WTI futures were $ 0.12 or 0.21% cheaper to reach $ 58.24 a barrel.
During the last session, the contract rose by $ 0.39 or 0.7% to record $ 58.36 a barrel.
Yesterday, both Brent and WTI closed at their highest levels since January 2020.
On Tuesday, Brent crude rose for the eighth session in a row while West Texas Intermediate rose for 7 straight sessions.
According to Market Watch. while supply dynamics in the oil market are clear and stable,
trader’s interest is focused on-demand expectations.
According to Bloomberg’s sense, experts note that technical indicators show a possibility of a correction in oil prices after a long rise.
Additionally, there are concerns that higher prices will support production by some oil producers.
US Energy Department expects that global oil demand will reach 97.67 million barrels a day and global supply will also reach 97.29 million barrels a day.
Thus, the world may not be facing a surplus but it may face an oil shortage of 380,000 barrels a day during this year.
According to US Energy Department estimates, the oil supply deficit could rise to 400.000, barrels a day in 2022.
Coronavirus pandemic besides unprecedented production reduce by OPEC+ countries
as well as Western collective sanctions and embargoes on some oil-exporting countries have led to a sharp decline in investments in oil industry.
Gold is stable
Gold prices stabilized near their highest levels in a period of one week as pets on a quick aids package help in supporting expectations
of high inflation rates which have reached their highest levels in several years and have also fuelled the so-called deflationary trade.
Spot gold rose at a rate of 0.2% to record $ 1,842.13 an ounce after rising to $ 1,848.60 on Tuesday.
Today, Consumer price data are decided to be announced while Federal Reserve Chairman,
Jerome Powell will speak at a Web interview hosted by Economic Club in New York.
Noticeable positive trading in Asia… A calm mood in Wall Street
In Asian markets, with exception of the Japan Stock Exchange,
there are clearly positive dynamics as the Nikkei index retreated by 0.1% while the border Topix index rose by 0.2%.
China’s Shanghai Composite rose by 0.9%, while CSI 300 rose by 1.4% but Hong Kong’s Hang Seng rose at a rate of 1.5%.
In South Korea, Kospi rose by 0.4%. In Australia, S&P /ASX 200 rose at a range of 0.5%, while the Singaporean index slightly fell by 0.1%.
On the other side, Toyota shares jumped by more than 2% after start-up Aurora announced
that it would participate with Toyota in building and providing large-scale
and self-drive cars after Aurora had bought a self-propelled Uber device last December.
Nissan shares jumped 2.8% after CEO Makoto Uchida emphasized the importance of electric cars in the future.
He said that Nissan would convert 100% of its new model’s cars to electricity in main markets from the beginning of 2030.
Uchida also confirmed that Nissan is working closely with semiconductor manufacturers
so as to reduce the impact of the semiconductor shortage on the car industry.
In Wall Street, a relatively calm mood prevailed as the Nasdaq index rose by 0.14%,
while S&P 500 and Dow Jones indices sharply fell by 0.11 % and 0.03% in a row.
Facebook and Netflix respectively rose by 1.1% and 2% while Microsoft also ended in a positive rise.
GameStop shares were down 16% to record $ 50.31 after falling down by 80% last week. At its peak,
the stock was trading at $ 483 after trying to put pressure on short-sellers.
On Tuesday evening, Stable US exchanges are supposed to support the German stock market on Wednesday at the start of trading.
DAX index managed to stay above the 14,000 marks while Wall Street indices remain near their record levels in the evening.
However, bullish momentum seems to be slowly retreating after several days of profit-taking.