Oil loses 10 dollars in two sessions and positive stock performance in Japan and the United States
US crude fell 8 percent and benchmark Brent crude 6.8 percent.
The decline followed reports that China began its biggest coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai
Evest follows market developments in the following report
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Oil continues to decline sharply after losing $8 on Monday
Standard & Poor’s: The Russian economy will suffer in 2022
Oil continues to decline sharply after losing $8 on Monday
Oil prices continued to decline after a sharp decline the previous day, under concern that demand in China had declined owing to severe restrictions imposed by Beijing in response to the increase in cases of coronavirus infection
Bloomberg points out that the coronavirus outbreak in China is the largest since the beginning of the pandemic.
Currently, more than 62 million people in China are already or will soon be subject to restrictions
Shanghai authorities have lockdown the eastern part of the city, which includes the financial district and industrial complexes,
for four days since Monday for citizen mass checks.
In the future, the western part of the city will also be on lockdown for four days
Rystad Energy estimates that the lockdown in Shanghai could reduce oil demand by 200 thousand barrels per day
The cost of Brent crude futures for May on the London Stock Exchange Futures on Thursday is $110.71 per barrel,
$1.77 (1.57%) lower than the closing price of the previous session.
As a result of Monday’s trading, these futures fell by $8.17 (6.8%) to $112.48 per barrel
The price of West Texas Intermediate oil futures for May in electronic trading on the New York Mercantile Exchange (NYMEX) is $104.77 per barrel,
$1.19 (1.12%) lower than the final value of the previous session. On Monday, the cost of these futures declined by $7.94 (7%) to $105.96 per barrel
The increase in Covid-19 infections is increasing the volatility of the oil market in the context of the Russian-Ukrainian conflict, as well as tensions in the Middle East
In the meantime, OPEC + countries are preparing to hold another meeting on Thursday to discuss oil production plans in May.
Recent statements by the group’s representatives indicate that OPEC + will decide to increase production according to the pre-agreed schedule
Standard & Poor’s: The Russian economy will suffer in 2022
According to analysts at Standard & Poor’s Credit Ratings, the Russian economy will suffer a significant recession in 2022 because of severe sanctions and the severing of established ties with Western companies
According to their projections, Russia’s GDP growth in 2022 will decline by 8.5% and will not change in 2023
Agency analysts warn of significant uncertainty about the new outlook. Two weeks ago, they forecast a 6.2% decline in Russia’s economy this year and a 0.3% increase next year,
but they were forced to exacerbate these forecasts
Standard&Poor’s also notes that expectations for developing countries in Europe, the Middle East and Africa have changed significantly as a result of the Russian-Ukrainian conflict, and European countries are more vulnerable than others, owing to their geographical and economic proximity to the conflict zone
Although it is difficult to estimate all the consequences, the main results will be a lower volume of trading,
deteriorating financial conditions, investor and consumer confidence, as well as higher energy prices, the Standard&Poor’s review says
Nikkei rises 1.1%
The main index of the Tokyo Stock Exchange, Nikkei, rose 1.1% this Tuesday thanks to the good performance of exporters with the weakening of the yen against other currencies and falling crude oil futures, leading to some calm
The Nikkei index, with 225 representative market titles, rose 308.53 points, to integer 28252.42.
The Topix index, which includes companies with the highest capitalization of the first division, rose 0.93%, or 18.29 points, to settle at 1991.66
Tokyo’s trading floor opened high and running throughout the negotiation period thanks to the positive development of exporters, particularly among electronics-related companies, which have benefited from the yen’s depreciation, giving their products greater competitiveness abroad and amplifying their remittances
The decline in oil futures also played a positive role, helping to ease recent inflation concerns and urging investors to take risks
The transportation equipment sector led the day’s gains, along with freight and services
Nippon Yusen was the most traded company during the day and rose by 2.2%, while its competitors Mitsui OSK and Kawasaki Kisen (J-Line) advanced by 1.47% and 0.92% respectively
Toyota Car Manufacturing took third place in terms of transactions and rose 2.67%, followed by Softbank Communications Group, which rose 1.88%
Video game developer and distributor Nintendo added 1.39% and technology company Sony 1.8%
In the first division, 1466 companies rose against a decline of 635, while 77 closed unchanged Circulation amounted to 3.25 trillion yen (23.94 billion euros)
A new rebound in Wall Street
Stock indices rebounded again after Wall Street’s midday recession to close higher on Monday, adding to a recent market winning streak despite persistent concerns about the resilience of the global economy amid rising inflation and geopolitical tensions
The Standard&Poor’s rose 0.7% after falling 0.6%.
The Dow Jones Industrial Index gained 0.3% from the Red Zone for most of the day,
while the Nasdaq Composite Index rose after falling 0.5% to close 1.3% higher.
The indices were emerging from consecutive weekly gains
Standard & Poor’s Index rose 32.46 points to 4575.52. The declined now down 4% for the year.
The Dow Jones index rose 94.65 points to 34,995.89, while the Nasdaq index rose 185.60 points to 14,354.90
Trading has remained volatile, even though the recent market gains series, as investors try to measure the next step of inflation and the global economy as the aftermath of the Russian invasion of Ukraine continues
The Standard&Poor’s 500 Index posted gains of 1.8% last week and 6.2% the previous week
Small-cap stocks changed slightly. The Russell 2000 index rose 0.08 points, or less than 0.1%, to 2078.06
Technology stocks helped boost much of the recovery in Standard & Poor’s along with retailers, cruise lines and other consumer spending-dependent companies.
Microsoft’s stock rose 2.3 percent and Tesla 8 percent, the biggest gains in the index
These gains outweighed declines in other sectors, including banks, which fell as bond yields declined,
and energy stocks fell as crude oil prices closed sharply lower.
Citigroup fell 1.4 percent and Exxon Mobile 2.8 percent