Negative trends in global markets

Negative trends in global markets

Negative trends in global markets

Oil prices declined moderately on Tuesday morning after a dramatic rally the previous day

Evest follows market developments in the following report

topic

Oil declines slightly

UK unemployment declines to a 48-year low

Elon Musk: The US economy is in a long recession

Nasdaq and Standard & Poor’s decline and weak positive trading for Dow Jones

 

Oil declines slightly

The cost of Brent crude futures for May on the London Stock Exchange Futures on Thursday is $113.88 per barrel
$0.36 (0.32%) lower than the closing price of the previous session
As a result of Monday’s trading, these futures rose by $2.69 (2.4%) to 114.24 per barrel

The price of West Texas Intermediate oil futures for June in electronic trading on the New York Mercantile Exchange
(NYMEX) was $113.73 per barrel by this time, $0.47 (0.41%) lower than the final value of the previous session


The day before

these futures rose by $3.71 (3.4%) to $114.2 per barrel

West Texas Intermediate oil prices in North America rose more than the cost of benchmark Brent crude in the North Sea
and these futures were almost equal in price
This is because gasoline prices have risen sharply in the United States


for the first time

in history, gasoline futures for June on the NYMEX stock exchange crossed the $4 per gallon mark

The market is also monitoring China’s situation under the coronavirus
Shanghai stores, restaurants and malls reopened on Monday, albeit on a limited basis
MarketWatch reports, indicating some decline in infections

artical name Negative trends in global markets

 

 

UK unemployment declines to a 48-year low

According to the ILO methodology, the UK’s unemployment rate fell from January to March 2022 to 3.7%
the lowest level since December 1974

Unemployment was 3.8% between December 2021 and February 2022
Economists surveyed by WSJ did not expect the index to change

Statistics Bureau data showed that the country’s employment rate continued to increase in April
Last month, the number of jobs increased by 121 thousand to 29.5 million
while the number of vacancies reached a record of 1.295 million

For the first time in the screening history, the number of unemployed was found to be
lower than the number of vacancies,” the Census Bureau said in a statement

Average salaries for Britons without bonuses in the first quarter of 2022 increased 4.2% year on year
Wages fell 1.2% after adjusting for inflation

artical name Negative trends in global markets

 

 

Elon Musk: The US economy is in a long recession

Billionaire Elon Musk, the head of Tesla, believes that the US economy has already entered
a recession that could last 12 to 18 months, according to Bloomberg

Things like that go through, and then economic growth starts again
conditions are likely to be rough for a year or possibly 12-18 months
Musk said during the all-encompassing summit

Musk’s assessment

contradicts the Fed’s and economists’ forecast in a Bloomberg survey
US GDP declined by 1.4% from January to March, but the decline was mainly caused by a record foreign trade deficit
In the current quarter, the U.S. economy is expected to grow by about 1.8%, according to estimates from the Atlanta Fed

Bloomberg’s consensus forecast suggests that the likelihood of a recession in the United States next year is around 30%

In response to a question about inflation, Musk said that the reason for the record
growth in consumer prices was due to the increase in the money supply
The real reason for inflation is that the government printed a lot of new money. It’s very simple

artical name Negative trends in global markets

 

 

Nasdaq and Standard & Poor’s decline and weak positive trading for Dow Jones

The S&P 500 and Nasdaq Composite fell on Monday
and the Dow Jones Industrial index ended the day in a weak positive position

The Dow Jones Industrial Index rose by 26.76 points (0.08%) to 32223.42 points on Monday
Gainers were Chevron Corp., which rose by 3.1%, Merck & Co. – by 2.1% and Verizon Communications – by 1.8%

In the meantime, stocks of Boeing Co. showed the strongest decline in quotations by 2.5%
Walt Disney Co by 2%, and Salesforce Inc – by 1.7%

The Standard & Poor’s 500 today fell by 15.88 points (0.39%) to 4008.01 points
Following the session, the Nasdaq Composite index fell by 142.21 points (1.2%) to 11662.79 points

In general

 the recent negative trend remained in the stock market
owing in particular to weak data on the state of the economies of China and the United States, MarketWatch reports

China’s industrial output fell in April for the first time since March 2020
under quarantine measures introduced to curb the spread of COVID-19
Industrial output fell by 2.9% compared to April of the previous year
according to data from the Government Statistics Office


By comparison

it rose in March by 5%
Experts surveyed by Trading Economics forecast an average decline of 3.5% in the past month

Retail sales in China fell by 11.1% year on year after falling 3.5% in March
The decline in April was the highest since March 2020. Analysts predicted a 6.1% decline

The local Fed said the New York Empire Manufacturing Index fell to –11.6 in May from + 24.6 the previous month
The value of the index below zero indicates a deterioration in the region’s working conditions

Experts assumed an average decline of only 17 points, according to Trading Economics
The Wall Street Journal participants projected 16.5 points

Analysts at Goldman Sachs lowered their forecast for the growth of the US economy in 2022-2023
citing a decline in financial markets due to tighter monetary policy by the Federal Reserve system
The U.S. economy’s recovery assessment for the current year has been reduced to 2.4%
from 2.6% and next year to 1.6% from 2.2%

 

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