Oil stops losses below $100 a barrel European stock indices are mixed Oil is trying to limit its losses this week, as it rose slightly today, Wednesday, after the big decline yesterday
Evest follows market developments in the next report
containts
Oil rises after a sharp drop yesterday
European stock indices are moving in different directions
Gold is down for the third consecutive session
Oil rises after a sharp drop yesterday
Oil prices are rising on Wednesday after falling more than 6% in the previous session
May Brent crude futures rose $1.09 (1.09%) on the London ICE Futures Exchange to $101 a barrel. On Tuesday, Brent crude fell $6.99 (6.5 percent) to $99.91 a barrel
West Texas Intermediate crude futures for April at this moment in prices in electronic trading on the New York Mercantile Exchange (NYMEX) rose by $0.6 (0.62%) to $97.04 per barrel. During the previous session, the contract fell by $6.57 (6.4%) to $96.44 a barrel
Brent and West Texas Intermediate oil prices reached their highest levels since 2008 on March 8 on the back of the Russian military operation in Ukraine, but since then have already fallen by 22%, indicating a “downward” trend, Market Watch notes
The drop in oil prices, in particular, has been facilitated by concerns about lower demand in China, where there is another outbreak of Covid-19, due to the imposition of quarantine restrictions in a number of regions of the country
According to Bloomberg experts: “The main characteristic of the market at the moment is high volatility. There are no fundamental factors here, it is all about geopolitics, hysteria and fear However, perhaps not so radically
Data from the American Petroleum Institute (API), released overnight, showed an increase in US oil inventories last week by 3.75 million barrels
European stock indices are moving in different directions
European stock indices did not show a single dynamics on a trading basis on Tuesday
The composite index of Europe’s largest companies, the Stoxx Europe 600, fell with the market closing down 0.28% and amounting to 435.12 points
Germany’s DAX is down 0.1%, France’s CAC 40 is down 0.2%, and Britain’s FTSE 100 is down 0.3%. Italy’s FTSE MIB rose 0.3%, while Spain’s IBEX 35 rose only 0.02%
Market participants continue to follow the Russian-Ukrainian conflict. The next round of negotiations between representatives of the two countries ended without results, and investors are waiting for its continuation in the hope of de-escalation of the conflict
According to the analysts, “It is clear that European markets are already in very negative scenarios
The index of economic expectations of investors and analysts in Germany for the next six months, calculated by the ZEW research institute, fell in March by 93.6 points, the largest drop since the index began to be calculated in December 1991
The value of the index, on the background of the conflict between Russia and Ukraine, fell to minus 39.3 points, compared to 54.3 points in February
Meanwhile, analysts at Sanford C.Bernstein noted that net outflows from Europe-focused equity funds reached a record high for the second week in a row. In their opinion, investors may continue to exit European stocks
Commodity stocks fell after metal prices fell amid the outbreak of the new Corona virus in China. Polymetal International Plc fell 22.9%, Glencore Plc – 4.4%, and Anglo American – 0.7%
Meanwhile, oil company shares rose despite the collapse in oil prices. Shares of Shell Plc rose 0.7 percent, and BP Plc 1.3 percent
Shares of Allianz SE by the end of trading were down 0.2%. The German insurance company announced the termination of insurance for new business and the rejection of new investments in Russia
UniCredit is up 0.8%. Andrea Ursella, president of UniCredit, is reported by Bloomberg that the Italian banking group is considering leaving Russia as part of an urgent review of its activities in that country
RWE AG’s share price is up 1% on strong reports from the German energy company and an increase in dividends
Gold is down for the third consecutive session
Gold prices fell for the third day in a row as commodities continued to collapse ahead of the US Federal Reserve’s main meeting, when policy makers are expected to raise interest rates
Spot gold fell 1.4% to $1,925.42 an ounce. It erased most of its gains over the past two weeks. US gold futures fell 1.8% to $1,925.80 an ounce in New York
Gold’s reversal comes days after it rose to just under $5 from a record high as Russia’s invasion of Ukraine sent commodities soaring, threatening a combination of low growth and high inflation. Prices of major products including oil have since cooled, allaying those concerns
Bullion has risen this year in part because of its appeal as a hedge against rising consumer prices. Months of speculation about a new wave of interest rate hikes looks set to peak on Wednesday, as the US central bank is expected to start tightening in order to rein in inflation
Tuesday’s report showed that prices paid to US producers rose strongly in February due to higher commodity costs, underlining the inflationary pressures that paved the way for the Federal Reserve’s rate hike this week
“Gold prices have fallen in the past three days mainly due to lower oil prices,” according to Bloomberg analysts, which brings some good news that inflation, may ease a bit
“The first rate hike from the US often signals a low point in gold, so we will see what kind of signal they send tomorrow, and how optimistic their statement is, which will likely set the short-term outlook from here
