Global stock markets are in a crisis

Global stock markets are in a crisis

Global stock markets are in a crisis: The market is witnessing a state of anticipation of OPEC’s decisions, which in turn may lead to pushing oil to the top or down, after disappointing reports of US inventories which led to a decrease in oil yesterday.

The United States of America had also announced disappointing data yesterday.

This led to the trading of 3 main indicators in the red zone.

Evest is following up with you on all this and more.

It is also awaiting for movements of prices and their effects.


Oil is awaiting OPEC’s decisions

Oil prices have been rising higher today, as the state of optimism regarding OPEC’s meeting today led to supporting prices.

Brent crude has been trading at $ 64.54 rising by 0.73%.

At the same time, Western Texas Intermediate oil crude found buyers at $ 61.66.


OPEC Group

Expectations have been strengthened that the OPEC Group which includes the Organisation of Petroleum Exporting Countries (OPEC) and some countries outside it,
will continue to reduce current production in April.

This was effective for rising prices.


13 countries of OPEC’s members under the leadership of Saudi Arabia and 10 producing oil countries outside OPEC led by Russia will meet today via video conferences to determine the number of production decreases that will be implemented from April.


Unlike previous market expectations, and due to the fragile recovery of oil demand,
OPEC countries were expected to continue reducing current production in April instead of increasing production.


Oil prices have been stepped up during the last two days after rumours that OPEC members have voted against the expected increase in production and instead,
postponed the increase until April, according to Reuters.


According to some analysts, expectations indicate the possibility of OPEC taking a decision to increase production by 1.4 million barrels a day including 400,000 barrels by its allies and a return of 1 million barrels by Saudi Arabia which voluntarily reduced it last month.


Despite increasing production, they expect a continued market deficit during the second quarter,
besides a decrease in inventories, but at a rate less than February and March rates.


On another side, unlike expectations, a record increase was recorded in US commercial crude inventories last week.


According to data from US official Energy Information Management,
commercial crude oil inventories in the United States have witnessed the largest increase of about 21.6 million barrels since 1982, compared to last week.


Markets expected that inventories would be befallen by 1.9 million barrels.

On the other hand, gasoline inventories in the United States of America recorded the largest weekly drop by about 13.6 million barrels at the same period.


Expectations of DAX retreating from its highest level today


DAX index, which recorded its highest level yesterday,
is likely to follow international equity markets on Thursday because of renewable concerns about interest rates.

This means that investors quickly benefit after a short rise.

On the previous day, DAX was approaching 14,200 points, but it is likely to be now less than 14,000 points.

On Thursday, 2 hours before the beginning of trading,
IG the main indicator has been evaluated by a decline of 0.82% to record 13,964 points.


American stock exchanges are suffering… Dow Jones is at least worse

The rise in interest rates in the US bond market and vulnerable weak data from the domestic work market,
hit the US stock market, on Wednesday.

Even the most famous Wall Street index, is no longer able to maintain positive growth at the end of trading and it finally fell by 0.39% to record 31,270.09 points.


Among leading indicators of US stocks, the performance of both Standard & Poor’s 500 and Nasdaq was weak yesterday,
as the first declined by 1.31%, while the second fell by 2.7%.


Dow Jones was at least worse, as it closed down at only 0.39%, today.


Again, investors preferred technology shares.

This significantly is due to repeated increases in bond revenues.

The oil industry was one of the most affected sectors of the Coronavirus epidemic.

Discussions of another financial relief package worth 1.9 billion dollars have been begun in the Senate.

The United States of America announced the creation of the private sector in the country for only 117,000 jobs in February, according to a labor market report, as economists were hoping for higher numbers compared to 195,000 in January.


PMI composite index of global activity in the United States –
calculated by IHS Markit – from 58.7 in January to finally 59.5 in February.

This rate was reviewed from 58.8 in Flash estimates.

Therefore, it proves to be settled at its highest level since August 2014.

This good news is soon contradicted by the non-manufacturing ISM index
which declined to $ 55.3 in February, compared to 58.7 during the previous month.

This decline reflects a significant slowdown in US service growth.


An increase in return on US ten-year Treasury bonds from 1.413%
to 1.482%, leading to putting sentiment under additional pressure.

This made the three stock exchanges close in the red zone.


Large price losses in Asia


Stock markets in Asia were down on Thursday.

Weak guidelines from the United States continued to affect Asian markets.

Japanese leading index, Nikkei 225 closed retreating by 2.1%, after gains in recent prices.

CSI – 300 which includes the largest 300 companies listed on China’s mainland stocks, has lost 3.2%.

In Hong Kong, the Hang Seng index retreated by 2.4%


Global stock markets are in a crisis