Oil rebounds from losses Negative trading in Asia and Wall Street

Asia Negative dynamics Negative trading Oil Wall Street

Oil rebounds from losses Negative trading in Asia and Wall Street

Oil rebounds from losses Negative trading in Asia and Wall Street : Signs of recovery are emerging to offset yesterday’s losses, with Brent crude still close to $80 per barrel. 

Evest follows market developments in the following report.


Oil rebounds from yesterday’s losses

United States stock indices are mixed at the end of Monday’s session

How did US stocks do?

Goldman Sachs: The Federal Reserve may raise interest 4 times in 2022

Negative dynamics in Asia



Oil rebounds from yesterday’s losses

Oil prices rise during trading on Tuesday, recovering from the decline of the previous session.

The cost of Brent crude futures for March on the London Stock Exchange ICE Futures on Tuesday is $81.24 per barrel,
$0.37 (0.46%) higher than the closing price of the previous session.

As a result of Monday’s trading, these futures fell by $0.88 (1.08%) – to $80.87 per barrel.

The price of West Texas Intermediate crude futures for February in electronic trading on the New York Mercantile Exchange (NYMEX) ,
at this time is $78.74 per barrel, $0.51 (0.65%) higher than the final value of the previous session.

By the end of Monday’s trading, the value of these futures fell by $0.67 (0.85%) to $78.23 per barrel.

Pressure on price quotations this evening raised demand concerns with the rapid spread of the new strain of coronavirus, Omicron.

Population testing for Covid-19 began after 20 people were diagnosed with the coronavirus in the Chinese city of Tianjin near Beijing, state media reported over the weekend.

New infections were detected on January 7 and 8, while two people were confirmed to have been infected by the Omicron strain.

Some risk appetite returned to the market on Tuesday, while oil prices were backed by a weak US dollar.

In the meantime, Libya is gradually restoring production after last week’s decline due to the temporary closure of a major oil pipeline in the east of the country.

After completion of work on the facility, production increased by 900 thousand barrels per day, according to Bloomberg reports.

United States stock indices are mixed at the end of Monday’s session

The NASDAQ composite index, which fell by 2.72% or more than 400 points on Monday,
ended trading in the positive zone and showed a record recovery in one session in almost two years. 

The index fell last week to its lowest level since February 2021 by 4.5%.

The index fell below the 200-day moving average during Monday’s session but managed to avoid the first closure in 20 months below this significant level. 

In addition, the Nasdaq index was very close to a correction, 10% lower than the last peak.

The Dow Jones Industrial Index fell as trading closed on Monday by 162.79 points (0.45%) and reached 36068.87 points.

Standard & Poor’s 500 fell by 6.74 points (0.14%) – to 4670.29 points.

The Nasdaq Composite Index rose by 6.93 points (0.05%) to 14942.83.

These negative dynamics in the trading context were due to predictions of a sharp tightening of the Fed’s monetary policy.

The likelihood of higher interest rates boosted the yield on U.S. government bonds and negatively affected stocks,
especially technology stocks, which account for the bulk of Nasdaq accounts.

 However, the IT giants began to recover, and Apple, Microsoft and Nvidia stocks managed to gain a small increase.

The S&P 500 and Dow Jones closed in the “Red Zone” on January 10, but recovered the losses significantly and moved away from the session lows.

Meanwhile, the release of U.S. inflation data on Wednesday will be the most important market event this week.

Analysts surveyed by Trading Economics predict the CPI to rise in December 2021 by 7% on an annual basis and 0.4% from November.

Consumer prices in the United States rose by 6.8% on an annual basis in November, the fastest pace since 1982.


How did US stocks do?

Investors followed the corporate news and waited for the quarterly reports of Wall Street’s largest banks, which will be released this weekend.

Shares of US video game developer Zynga Inc. rose by 41% against news that Take-Two Interactive Software was buying the company for $12.7 billion,
and Take-Two declined 13%.

Lululemon Athletica fell 1.9% after the Canadian sports apparel maker and retailer said its profit,
and revenue would be closer to the lower end of forecast ranges in the fourth quarter of the fiscal year due to the negative impact of the coronavirus.

Cardinal Health’s capitalization fell by 5.9%.

One drug distributor cut its stock yield forecast for the fiscal year 2022 by about 40-45 cents due to rising inflation and supply chain turbulence.

The market value of Discovery Inc declined, with the share falling 4.9% after the announcement ,
of the acquisition of a 10% stake in the developer of the targeted advertising platform Open AP.

The stock prices of Nike and Boeing declined by 4.2% and 2.9% respectively, leading to a decline in the Dow Jones index.


Goldman Sachs: The Federal Reserve may raise interest 4 times in 2022

Experts at Goldman Sachs believe that the Federal Reserve System (FRS) may raise the prime interest rate four times this year,
and begin reducing the size of assets on the balance sheet in July.

Analysts at Goldman Sachs believe that rapid progress in the recovery of the US labor market and optimistic signs ,
that can be seen in the minutes of the December Federal Reserve meeting suggest that,
the normalization of monetary policy by the US central bank will proceed faster than expected.

Negative dynamics in Asia

Stock indices in the Asia-Pacific region show mostly negative dynamics on Tuesday morning.

Japan’s Nikkei 225 index fell by 0.79%, Australia’s S&P/ASX 200 index – by 0.7%, China’s CSI 300 index – by 0.29%; Hong Kong’s Hang Seng index alone rose 0.42%. 

US S & P 500 index futures are rising by about 0.03% against the previous day’s close, indicating neutral morale on the US stock market on January 11.

Stock indices in Asia and the Pacific show negative dynamics on Tuesday: Japan’s Nikkei 225 fell by 0.77%, and China’s CSI300 by 0.29%.

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