A prospective meeting for OPEC and hedge fund ArChegos dominates markets
A prospective meeting for OPEC: Rescue teams at Suez Canal were able to float the stuck ship less than a week ago.
This made investors turn their attention to other events, including what happens to hedge fund ArChegos.
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Oil investors are waiting for OPEC meeting amid negative tradings
Today’s morning, International oil prices show weak negative dynamics,
as investors continue to assess supply and demand prospects before OPEC + meetings.
June futures price for North Sea crude oil mix declined by 0.17%, to record $ 64.81,
while futures for May fell also by 0.17% to record $ 64.87.
The cost of West Texas Intermediate futures for May fell by 0.1% to reach $ 61.50 a barrel.
Suez Canal
The situation began to return to its nature again in Suez Canal.
For several days, a giant cargo ship stuck in Suez Canal prevented passing dozens of ships from one of the most important waterways.
Osama Rabie, head of Canal authority, said that first ships had begun their track at an early hour of Monday evening.
Accordingly, more than 100 ships were supposed to leave their waiting positions by morning to cross Suez Canal.
However, according to information received from shipping companies, it may take days before the waiting list is fully resolved.
Investors are looking forward to OPEC + meetings on both Wednesday and Thursday to assess possible solutions for the oil cut deal.
The Meeting of the OPEC Ministerial Monitoring Committee (JMMC) will be held on March 31,
while the entire OPEC + Alliance meeting is scheduled for April 1.
According to an OPEC source
According to an OPEC source, Saudi Arabia is willing to accept the extension of its current production restrictions until the end of June.
In addition, given its current unfavorable epidemiological situation,
it was prepared to prolong voluntary unilateral cuts in production.
Analysts expect that OPEC + to stick to tighter crude oil production limits for another month,
with caution about oil prices this week.
While expectations of no change in OPEC + production have already been largely estimated by many analysts,
but there is a risk that members may still agree to relax oil supply restrictions.
After the previous OPEC + meeting- in early March- alliance’s producers were expected to support oil markets with additional crude oil, but OPEC and other producers chose not to increase supplies, given the ongoing threat of the Covid-19 epidemic.
Statistics on US commercial oil reserves
Statistics on US commercial oil reserves for last week are also expected to be released on Wednesday by the Department of Energy in the country.
Analysts believe that stocks will show growth for the sixth week in a row- by 0.4 million barrels to reach 503.1 million barrels.
Expectations for a strong European opening
Global exchanges regained strength after yesterday’s shock related to faltering hedge fund ArChegos.
This morning, all European indicators point to a rise, as Milan Stock Exchange may rise by 0.5%,
while London Stock Exchange may rise by 0.62%.
Frankfurt Exchange may rise by 0.59%, while Paris may rise by 0.46%.
The situation in Asia is differentiated
Major Exchanges in Asia and the Pacific were closed off without a certain direction,
focusing on the long Easter weekend amid a continual spread of the Covid-19 pandemic.
Tokyo Stock Exchange index rose by 0.16%, as Japan’s Nomura Bank was strongly hit by the collapse of the US Fund,
which closed at – 0.65%, after recording a historic decline of – 16.3%, Yesterday.
The broader Topix index remained below 2,000 points, down by 0.87%.
Shanghai index rose by 0.33%, while the Taiwan index rose by 0.485%, but the Seoul index rose by 1.12%.
Sydney Stock Exchange declined by 0.9%.
In Hong Kong, Hang Seng Index rose by 1.21.
Indian Stock Exchange rose by 1.8%, but it didn’t close its doors yet.
Talk is still going on for hedge fund in Wall Street
On Monday, in Wall Street, there were minor changes in the focus of attention, as hedge funds pulled capital into the spotlight.
This by its turn led to big sell-offs for some of the stocks late last week.
Dow Jones index realized a historic record in spite of banks’ weakness.
Dow Jones Industrial Index rose by 98 points, or 0.30%, at its close to record 33,171.37 points.
This is a new record for this indicator.
Standard and Poor’s 500 indexes fell by 0.09% at the end of the day to record 3971.09 points.
Nasdaq Composite index lost 0.60%.
The session closed at 13095.65 points.
Banking companies
Banking companies all over the world, assess their exposure to hedge fund withdrawals.
Sources say that fund is ArChegos Capital Management.
Analysts say that equity investors are clearly concerned after reports of forced liquidation of hedge fund ArChegos Capital.
Goldman Sachs’ stock retreated by 3%.
Bloomberg stated that Goldman informed shareholders that any losses it might suffer as a result of the withdrawal of ArChegos Capital Management were likely to be minimal.
JPMorgan and Wells Fargo lost 1.5% each, while Citi dropped by 2%.
Last week
Last week, Discovery stocks were recovering from pressure. On Friday, this company lost 27%.
On Monday, its stock rose by more than 2%.
ViacomCBS index retreated by 5%.
This company also lost 27% on Friday.
This includes selling shares of these 2 companies by ArChegos Fund.
Boeing
Boeing grew by more than 3%, following the announcement that Southwest Airlines would order another 100 of 737 MAX model.
Twitter earned 3%, after Trust’s upgrading to recommend its shares with “Buy” from “wait”.
Investors are preparing to increase fluctuations in a short leave week because of changes in portfolios and other senior investors at the end of this quarter.
Analysts say that the recent rapid rise in bond revenues can push funders to make significant amendments to their investment portfolios.