Oil stabilizes And a big rebound in American and Asian stocks
Oil stabilizes And a big rebound in American and Asian stocks: Markets are recovering significantly today, following the reassuring statements from the US administration about the Omicron variant.
Evest follows market developments in the following report.
Topics:
Oil stabilizes amid Europe’s energy crisis
Asian indices are in the green Zone
Oil stabilizes amid Europe’s energy crisis
Oil prices stabilized on Wednesday after rising steadily at the previous meeting amid Europe’s energy crisis.
The cost of gas in the region exceeded the level of $2000 per thousand cubic meters,
and experts are of the view that these conditions will lead to a growth in demand for petroleum products for power generation.
The oil market support was also supported by data from the American Petroleum Institute on Wednesday,
which showed a decline in US crude reserves last week.
According to the American Petroleum Institute, US oil reserves declined by 3.67 million barrels.
The decline will be observed for the fourth week in a row if confirmed by official data.
The US Department of Energy will publish a weekly report on the country’s energy reserves on December 22.
The cost of Brent crude futures for February on the London Futures Exchange on Wednesday is $73.95 per barrel,
$0.03 (0.04%) lower than the closing price of the previous session.
As a result of Thursday’s trading, these futures rose by $2.46 (3.4%) to $73.98 per barrel.
The price of West Texas Intermediate crude futures for February in electronic trading,
on the New York Mercantile Exchange (NYMEX) is $71.21 per barrel, $0.09 (0.13%) higher than the final value of the previous session.
By the end of Tuesday’s trading, the value of these futures had increased by $2.51 (3.7%) to $71.12 per barrel.
The price of Brent crude fell by 4.7% during the previous two sessions, Friday and Monday,
and West Texas Intermediate by 5.7% because of concerns about the rapid spread of the new strain of Covid-19, Omicron and its implications for global oil demand.
US stocks rise significantly
US stock indices rose significantly on the basis of Tuesday’s trading, while the Dow Jones and Standard & Poor’s 500 were the highest in the past two weeks.
The Dow Jones Industrial Index rose 560.54 points (1.6%) to 35492.7 points on Tuesday.
At the end of trading, the value of Standard & Poor’s 500 rose by 81.21 (1.78%) to 4649.23 points.
The Nasdaq Composite Index rose by 360.14 points (2.4%) to 15341.09 at the close.
Investor morale improved after the presidential administration announced it was intensifying its fight against Omicron.
US President Joe Biden urged Americans to get vaccinated against Covid-19 and not panic about the emergence of new strains of the coronavirus.
He said the government would buy 500 million home tests for the coronavirus and would begin handing it over in January.
Thus, on Tuesday, the market recovered some of its losses during the previous three trading sessions.
The current account deficit in the US balance of payments in the third quarter of 2021 rose by $16.5 billion to $214.8 billion, the highest figure since the third quarter of 2006.
According to experts, stocks have recovered from the overreaction to the news and Biden’s new plan to launch free Covid- 19 tests starting in January.
In a report released Tuesday, the U.S. Commerce Department said that the current account deficit in the U.S. balance of payments in the third quarter of 2021 increased by $16.5 billion to $214.8 billion.
This is the highest figure since the third quarter of 2006. According to adjusted data, in April and June, the negative balance is $198.3 billion, not $190.3 billion, as announced earlier.
Trading Economics reported that analysts predicted an average deficit increase from July to September of $205 billion from previously announced second-quarter levels.
How did stocks do?
Nike recorded better than expected income and revenue for the second quarter of the fiscal year 2022 (November-September), despite a sharp decline in sales in China.
The sporting goods maker rose 6.2% on the day to become the top gainer on the Dow Jones index.
Micron Technology nearly tripled its net profit in the first financial quarter, which ended on December 2, with revenues of 33.3%, which was better than analysts’ expectations.
In addition, the company had a positive outlook for the current quarter.
The cost of the memory slice maker rose by 10.5%, the best in more than a year.
Oracle’s stock fell by 0.1%.
The international rating agency Moody’s Investments Service has put the Oracle ratings,
under review with the possibility of downgrading after news of the purchase of Cerner Corp.
specializing in electronic health records, for $28.3 billion to finance the transaction.
Serner’s stocks gained 0.2%.
Proctor & Gamble’s stock fell by 0.1%.
The world’s largest consumer goods manufacturer calls for a number of US dry shampoos to detect cancer-causing gasoline.
United Parcel Service, the world’s largest express delivery service, has ordered 19 new wide-body cargo aircraft from Boeing Co.
Delivery of aircraft is scheduled for 2023-2025. UPS stocks rose by 2.3% and Boeing by 5.9%.
Asian indices are in the green Zone
Stock indices in the Asia-Pacific region on Wednesday morning also show positive dynamics, although the overall rate of increase is relatively modest.
Japan’s Nikkei 225 index rose by 0.2%, China’s CSI 300 index by 0.08% and the Australian S & P/ASX 200 index grew by 0. 04%,
Kospi in South Korea by 0.2%, Hong Kong Hang Seng by 0.35%.
In the meantime, US S & P 500 index futures fell by 0.12% to the previous day’s closing level,
indicating a possible negative correction in the US stock market on Wednesday.