,Oil declines for the second consecutive day Asian and American exchanges in the Green Zone
Oil declines for the second consecutive day Asian and American exchanges in the Green Zone: Western and American talks over Russia’s war on Ukraine have calmed down,
paving the way for more peaceful solutions, and talks may result in the cancellation of the idea of a Russian invasion,
giving markets a chance to recover and rise again.
Evest follows market developments in the following report.
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The calm in the talks on the Russian Ukrainian War gave markets a chance to recover
Oil declines slightly
Oil prices declined moderately during Wednesday’s trading, after a sharp decline in the previous trading.
The April futures price for Brent oil in London Futures Exchange reached $93.16 per barrel,
$0.12 (0.13%) lower than the closing price of the previous session.
As a result of Tuesday’s trading, these futures fell by $3.2 (3.32%) to $93.28 per barrel, the largest one-day decline since the end of November.
The price of West Texas Intermediate oil futures for March,
in electronic trading on the New York Mercantile Exchange (NYMX) is $92.04 per barrel, $0.03 (0.03%) lower than the final value of the previous session.
On Tuesday, the cost of these futures fell by $3.39 (3.6 percent) to $92.07 per barrel, the highest price since the beginning of the year.
The conflict between Russia and the West over Ukraine had a key role for traders.
Traders still see serious risks to the market if the conflict over Ukraine escalates.
On Tuesday, the Russian Ministry of Defense announced the start of the return of units of the Western and Southern Military units from exercises to their bases.
The United States, other NATO countries and Ukraine have,
previously announced the concentration of Russian forces near the Ukrainian border and claimed Russia was preparing for an invasion.
In the meantime, a report from the American Petroleum Institute (API) showed a decline in US fuel reserves.
The report stated that US crude oil inventories fell by 1.1 million barrels last week.
The United States Department of Energy will publish a weekly report on the country’s commercial oil,
gasoline and distillate inventories later in the day.
The calm in the talks on the Russian Ukrainian War gave markets a chance to recover
On Tuesday, the Russian Ministry of Defense announced the start of the return of units of the Western and Southern Military units from exercises to their bases.
On Tuesday, Foreign Minister Sergeĭ Lavrov announced Russia’s willingness to continue talking to the West.
United States President Joe Biden said on Tuesday that it was necessary to try with the help of diplomacy to resolve problems with the Russian Federation on security.
Biden said that the United States does not regard Russia as its enemy, and Washington has no aim of destabilizing it.
White House spokeswoman, Jen Psaki, said on Tuesday that Washington had no intention of encouraging Ukraine to join NATO.
Experts again point to the improved geopolitical situation and general market sentiment ,
there were reports of the beginning of the withdrawal of units of the southern and western military regions,
from the Russian Federation after the completion of the task plan assigned during the exercises.
The first estimate of Japanese GDP for the fourth quarter slightly matched expectations,
and the quarterly growth rate of the eurozone economy also matched expectations,
while the United States producer price index in January exceeded expectations, which kept investors calm during yesterday’s session.
On Wednesday, the content of the minutes of the latest Fed meeting will be important to the overall sentiment in the markets.
There will also be data on January inflation in the UK and US retail sales.
Wall Street is rising again
US stock indices rose on Tuesday by 1.2-2.5% following news of the withdrawal of Russian troops from the Ukrainian border.
In the meantime, oil prices declined, which was also viewed positively by investors concerned about increasing inflationary pressures, including rising energy prices.
Tech companies have led the Wall Street recovery, with investors welcoming developments,
that suggest tensions over Russian military reinforcements on the Ukrainian border may decline.
Standard & Poor’s Index rose by 1.6% to 4471.07.
The index’s gains broke a three-day losing streak and almost made up for all of its losses last week.
Dow Jones Industrial Index rose by 1.2٪ to 34988.84 and the tech-heavy Nasdaq Composite index rose by 2.5% to 14139.76.
Nearly 80% of stocks within the Standard & Poor’s Index have gained.
In addition to technology stocks, banks and companies that rely on consumer spending have also helped the market recover.
The US Producer Price Index (PPI) jumped by 1% in January, when the figure rose by 0.4%, according to data from the country’s Department of Labor.
The index jumped 9.7% on an annual basis after an adjusted 9.8% gain in December.
Analysts predicted an increase of 0.5% in the former index and 9.1% in the latter, according to Trading Economics.
In addition, New York’s manufacturing activity index rose in February to 3.1 points from 0.7 points the previous month
. Analysts surveyed by Trading Economics predicted a more significant rise – up to 12.2 points.
Positive trading in Asia
Positive dynamics of stock indexes also prevail in Asia, with Australia’s ASX Australia rising by 0.8%, Japan’s Nikkei by 2.1%,
China’s Shanghai composite by 0.7%, South Korea’s KOSPI by 1.6%, Hong Kong’s Hang Seng by 1.3%
Asian stocks rose on Wednesday, backed by hopes for a diplomatic solution rather than a Russian invasion of Ukraine.
However, analysts have recommended caution that tensions have not been fully resolved and that the situation remains volatile.
For its part, the Chinese government reported that consumer prices rose by 0.9% from the previous year in January,
while prices of goods when they left the factory rose by 9.1%.
Supply disruptions that led to higher prices in the United States and Europe also affected China,
but the impact on Chinese consumers was lower.
Inflation in January fell by 1.5% from December. Forecasters expect it to fall further.