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Markets are maintaining stability amid a state of general positive mood

Markets are maintaining stability amid a state of general positive mood

Markets are maintaining stability amid a state of general positive mood:

Global markets continued their stability with support adopted by hopes of getting
a new package of measures to stimulate the economy.

In the coming days, House Budget Committee is expected to combine all components
of President Joe Biden’s $ 1.9 trillion plan into one bill.

This plan will be voted on in the House of Representatives in Congress before the end of the month.

 

In addition to that, reports on progress made in combating Coronavirus help in keeping optimistic of investors.

Therefore, according to World Health Organisation, the number of new Covid-19 infections
in the world has decreased for the fifth week in a row.

Last week, in the United States an average of 85.9,000 new cases of the disease were daily recorded.

This is 41% less than the average of cases two weeks ago.

 

Evest is following up on the effect of all this on markets.

 

Oil is stable and maintains its gains… West Texas Intermediate crude is $ 60 higher

Today, oil prices are witnessing a slow but sure rise although their growth is severely restricted by the rise of the dollar.

 

April futures for Brent crude in London Futures Exchange recorded a range of $ 63.45 a barrel,
rising by $ 0.1 to reach 0.16%.

 

On New York Mercantile Exchange (NYMEX),
West Texas Intermediate crude oil for March delivery slightly fell recording $ 60.04 a barrel.

This is $ 0.01 or 0.02% lower than yesterday’s level.

Yesterday, it rose by $ 0.58 or 1% to record $ 60.05 a barrel,
breaking the $ 60 psychological barrier for the first time since January 2020.

 

The onset of a severe winter in the United States continues to be a tailwind for oil prices.

Compared to higher prices in the last trading days, price gains on Wednesday were initially limited.

 

Oil prices were boosted again by the onset of severe winter in parts of the United States of America
as freezing temperatures caused widespread disruption of production and delivery problems.

 

Low temperatures in the central states of the United States of America have led to disruption in oil production and the closing of some of the refineries.

Freezing weather has also crippled the Texas power system, where most of the shale oil in America comes from.

 

Now, experts assume that more than 3.5 million barrels a day were affected and thus a significant portion of the total US production was affected as well.

 

Today, in another context, economic data from the US will be the focus of attention as there are several major events.

Positive development in the market is expected to be continuing especially since the largest economy
in the world has been relatively strong in recent times.

This also helps to raise hopes of increasing demand in oil markets.

 

As demand for oil and its products increases and the number of Coronavirus “Covid-19” cases decreases,
oil prices are expected to remain in a higher range.

 

At the moment, it is not exactly known how long winter weather will be lasting in the US,
but analysts estimate that the effects of this phenomenon on global oil markets could be short-term.

 

According to Reuters, and as experts say, after this period of hard weather conditions,
the oil will return to be trading on the previous basis,
with the discipline of supplies of OPEC + countries besides gradual improvement in demand especially since vaccination against Covid-19 will continue to support the fuel market.

 

Some analysts say that commodities including oil are included in the so-called “supercycle” because investors are using them as a hedge against accelerating inflation as the global economy recovers.

 

Global stock exchanges are in divergence

On Wednesday, Japan’s Tokyo Stock Exchange closed in the red area,
affected by profit-taking after two sessions of strong growth, while Wall Street ended without a clear direction on Tuesday.

 

Nikkei’s index of 225 major Japanese companies decreased by 0.58%
to record 30,292.19 points while the expanded Topix index
decreased by 0.18% to record 1961.49 points.

 

On the previous day in New York, the Dow Jones index slightly rose but Nasdaq and S&P 500 indexes ended in a small negative decline.

This encouraged Japanese investors to calm things down.

 

Dow Jones index managed to make a small increase of 0.2%
to record 31,523 points amid a lack of new tangible drivers for another increase.

Vaccination campaigns and a decline in the numbers of new infections are beneficial to the economic perspective amid the Corona pandemic but they are not tangible enough to increase a significant rising, according to some experts.

 

Standard & Poor’s 500 eventually lost 0.1% to record 3,933 points.

Technology index Nasdaq 100 fell by 0.3% to reach 13,774 points.

Among events expected on Wednesday, Redbook released retail trade figures.

In Hong Kong, Hang Seng Index rose by more than 1% on Wednesday while Shanghai and Shenzhen stock exchanges
remained closed due to the Chinese New Year holiday.

 

In South Korea, Kospi fell by 0.9%, and S&P /ASX 200 in Australia fell by 0.5%.

Singapore Stoke Exchange fell by 0.4%.

 

According to pre-market indicators, German DAX will begin training at a rate of 14,050 points.

 

The focus is initially on Beiersdorf stock.

Consumer goods group limited decline in sales and gained market share in Corona’s year.

However, due to continuing high level of investment in new products and digitization, profits have been collapsed.

 

Last year, the bottom line was dividends of 636 million Euros which is roughly a fifth less than the previous year.

However, shareholders should receive an unchanged dividend of 70 cents a share.

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