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Asian Stocks Drop as China’s Economic Support Shows No Results

Asian Stocks Drop as China’s Economic Support Shows No Results: Asian stocks fell after four months of gains, as China’s efforts to support its economy showed no tangible results.

 

Content

Oil Prices

Asian Stocks

Purchasing Managers’ Index

 

 

 

Oil Prices Continue to Decline Amid Signs of Increased OPEC+ Production and China’s Struggles

Oil prices fell amid signs that the OPEC+ alliance will move forward with a plan to raise production starting
in October while economic headwinds in China continue to grow.
Brent crude futures for November delivery dropped to around $76 a barrel after losing more than 2% on Friday,
and West Texas Intermediate traded near $73.
According to delegates involved in the discussions, the OPEC+ alliance
is set to add 180,000 barrels daily as it gradually restores halted production since 2022. 

Over the weekend, Chinese data showed factory activity contracted for the fourth month in August.
The housing sector’s recession deepened,
raising concerns that the world’s largest crude oil importer might struggle to meet its economic growth target this year.

 

Asian Stocks Drop as China’s Economic Support Shows No Results

Asian stocks fell after four months of gains, as China’s efforts to support its economy showed no tangible results.
Indices fell in Australia and China, while the South Korean index remained unchanged.
Japanese stocks were the only ones to rise on Monday,
supported by news of corporate earnings that exceeded expectations.
In Hong Kong, the main index declined,

with shares of New World Development falling 12%
after the debt-laden real estate developer said it expects to post its first annual loss in two decades.

U.S. futures also edged slightly lower, suggesting that the S&P 500 is poised to decline after closing higher on Friday,
supported by data that bolstered the Federal Reserve’s expectations of imminent rate cuts.
The dollar remained stable,
and global cash Treasury markets closed Monday due to the U.S. Labor Day holiday.
Australian government bond yields rose.

 

 

 

China’s Caixin Manufacturing PMI Better Than Expected

Data released by S&P Global on Monday morning showed

China’s Caixin Manufacturing PMI grew at a pace that exceeded market expectations in August.
According to the data, the Caixin Manufacturing PMI recorded 50.4 points in August,
significantly better than the forecasted 50.0 points.
The Caixin Manufacturing PMI in the People’s Republic of China had recorded 49.2 points in July.

 

Asian Stocks Drop as China’s Economic Support Shows No Results

Stocks declined and the dollar at its highs

Stocks declined and the dollar at its highs sending oil prices declining

 

Stocks declined on Wednesday morning and the Nikkei index
fell to a three-month low under recession concern,
and the dollar returned to 20-year highs on Wednesday,
adding to downward pressure on crude oil prices.

 

topic’s

Nikkei fell to a nearly 3-month low amid global recession concerns

Dollar back to a 20-year peak and FX in Asia affected by Fed hawkish talk

Oil recovery stalled as concern over recession outweighs supply crisis

 

 

 

 

 

 

 

 

 

Nikkei fell to a nearly 3-month low amid global recession concerns

 

Japan’s Nikkei fell to near three-month lows on Wednesday,
as recession concern grew after Wall Street stocks fell deeper in a bear market,
and after a report that Apple abandoned plans for more iPhones.

 

The Nikkei average fell by 2.21 percent to 25984.51 by midday,
from the psychological 26,000 level for the first time since July 4.

 

After opening, the index declined steadily, down about half a percent,
and mid-morning sales accelerated,
as Apple abandoned a plan to increase production of its new smartphones
after the expected surge in demand failed.

 

Of the index’s 225 components, 220 declined, three rose and two traded unchanged.

 

The broader Topix index also fell by 1.72 percent to 1840.78.

 

Investors globally are on the brink as high borrowing costs cause concern
over a widespread recession, with most of the world’s major central banks
focusing directly on tightening policies to contain hyperinflation.

 

 

 

 

 

 

 

 

 

Dollar back to a 20-year peak and FX in Asia affected by Fed hawkish talk

 

 Asian currencies fell on Wednesday,
while the dollar rose to 20-year highs on hawkish statements from Fed officials
and growing demand for safe haven.

 

The dollar index jumped by 0.4 percent to a new 20-year high of 114.68,
while dollar futures rose in a similar range,
and a broad market flight in risk-driven assets increased demand for the dollar’s safe haven.

 

Asian currencies fell sharply as upbeat comments from some Fed
officials suggested more pain in the region due to the rate hike.

 

China’s overseas yuan was among the worst performers today,
falling by 0.7 percent to a record low of 7.2302 per dollar,
while its domestic counterpart traded at lows last seen during the 2008 financial crisis.

 

The People’s Bank of China (PBoC) is struggling to support economic growth severely
hampered by this year’s COVID-19 lockdown,
and China’s economy has barely grown in the second quarter,
likely to shrink in the coming months.

 

Overnight, St. Louis Fed President James Pollard warned that
the United States was facing a serious inflation problem,
likely indicating more tightening monetary policy
as the country struggles with inflation at 40-year highs.

 

Their comments come a few days after the Fed
raised interest rates for the fifth time this year and
warned it was ready to risk economic pain in its fight against runaway inflation.

 

US interest rates rose by 300 points during the year to 3.25 percent,
with 2022 widely expected to end by more than 4 percent. 

 

Asian currencies have fallen this year as rising U.S.
interest rates narrow the gap between risky returns and low-risk returns,
with the region braced for more pain as interest rates rise.

 

The Japanese yen was among the few outliers,
rising 0.1 percent from a 24-year low,
and the currency likely benefited from the government’s intervention
in foreign exchange markets to prevent a further yen depreciation.

 

artical name Stocks declined and the dollar at its highs

 

 

 

 

 

 

 

 

Oil recovery stalled as concern over recession outweighs supply crisis

 

 The oil price recovery is running out of fuel on Wednesday with
concern that short-term demand is slowing to offset a potential
supply shortage caused by OPEC production cuts
and a hurricane in the Gulf of Mexico.

 

Prices have remained near eight-month lows,
as rising interest rates and growing concern over the economic slowdown
have shaken short-term demand expectations.

 

London-traded Brent crude futures rose by 0.1 percent to $84.46 per barrel,
while US West Texas Intermediate crude futures fell
by 0.5 percent to $78.15 per barrel by 01:19 GMT,
and both futures rose by  2 percent on Tuesday.

 

Concern over slowing demand has returned after data from the US Petroleum
Institute showed US crude inventories rose far more than expected last week,
an increase of 4 million barrels compared with forecasts of 333 thousand barrels.

 

These figures have raised further concern that higher interest rates
and higher inflation in 40 years could affect demand in the near term.

 

About 11 percent of US oil production in the Gulf of Mexico,
or 190 thousand barrels per day, was closed this week with
major producers evacuating some offshore platforms
in anticipation of Hurricane Ian.

 

Russia remains ready to pressure OPEC + to cut supplies by at least 1 million barrels per day
(BPD) during its monthly meeting next week,
and other cartel members have also supported production cuts to stabilize oil prices.

 

While crude oil prices fell from their highs earlier this year,
reducing supply, especially from Russia,
could provide a bullish boost by the end of the year,
as well as demand for heating oil during the winter may also support prices.

 

artical name Stocks declined and the dollar at its highs

 

European emergency plan goes into effect

European emergency plan goes into effect to face possible Russian gas outage.

 

Europe had previously drawn up a plan in order
to face the specter of Russian gas interruption
due to the sanctions imposed on Russia for its war on Ukraine,
and now Europe is preparing to implement its plan,
according to what was published in the official newspaper of the European Union on Monday,
and this comes after a statement by a German government spokesman ,
that they ruled out the decision to approve

the currently suspended Russian Nord Stream 2 natural gas pipeline.

The European Commission calls for the unity of the Union
and work to reduce gas consumption by about 15%
at a time of high gas prices and an increase in inflation rates.

 

 

topic

Germany is the first European country to suffer from the gas crisis.

China’s exports rise more than expected jump 18% in July.

“Google” services return to work after a malfunction And “WhatsApp adds a new feature And the share of “Twitter” is rising

 

 

 

 

 

Germany is the first European country to suffer from the gas crisis.

The difficulties regarding the operation of the natural gas pipeline coming from Russia,
Nord Stream 2, are still largely ongoing,
and Germany believes that it must deal with this reality quickly.
German officials said that their country in the coming months
will be facing the reduction in natural gas supplies,
despite this, Germany intends to stand firmly by Ukraine,
and will work to implement the economic sanctions signed on Russia,
and there is no intention to reverse this decision in light of a marked rise in electricity bills.

 

Germany’s plan is to solve the crisis.

First, it must rationalize consumption and provide at least 20% of energy consumption.
German Chancellor Mueller added that
his country should reduce its gas exports by 20% to neighboring countries,
and work to import between 10 to 15 gigawatts. An hour of gas to meet the shortage.

 

Natural gas prices are rising.

For the third time during the past week,
as a result of fears of an interruption in supplies of Russian gas,
prices rose again, and according to expectations,
the current rise in gas prices will continue for a while,
and within the framework of the plan,
European countries seek to try to fill the reservoirs with about 71% of their capacity
in order to meet the expected deficit in Winter.

Gas futures rose by 5.9% during the past week,
which caused an increase in prices after Russia’s decision to reduce gas supplies
that pass through the main Stream pipeline to 20% of its capacity.

 

artical name European emergency plan goes into effect

 

 

 

 

 

 

 

 

 

China’s exports rise more than expected jump 18% in July.

 

Based on customs data that appeared on Sunday,
Chinese exports rose by about 18% in July, after they had achieved 17.9% in June,
at a time when imports rose 2.3% less than expected, which was 3.7%.

And China was able to record a surplus of its foreign trade by about 101 billion dollars in the month of July,
compared to expectations that were indicating 90 billion dollars for the surplus.

The Chinese economy is currently indicating improvement with
the easing of special restrictions to combat the Corona epidemic,
which is a good indicator for the global economy,
given that China is the second largest economy in the world,
and the second largest consumer of oil.
The Chinese economy contracted during the second quarter due to fears of closures,
but China is still striving to avoid any cases of coronavirus infection,
which will remain a top priority.

And the Chinese economy achieved slower growth two years ago by about 0.4%
on an annual basis during the second quarter due to its health restrictions.
Since 2020, China has followed the “zero Covid” policy,
which is to try to avoid any new infections, and these measures had a negative impact on the Chinese economy,
which Many companies and factories were forced to stop their operations and put pressure on supply chains.

 

 

 

 

China imports from Russia

In light of Russia’s war on Ukraine and the tense situation
as a result of European sanctions imposed on Russia,
the growth of Chinese imports from Russia maintained its high level,
reaching 49% in July, despite declines of 56% in June and 79% in May.

Russia is the main exporter of oil, gas, coal and agricultural commodities to China,
and Chinese buyers have benefited by reaping supplies at low prices.

Russian oil supplies to China fell by 21.3 million barrels in July,
the lowest level since February
According to the data of the General Administration of Chinese Customs issued in April of this year,
the volume of trade exchange between China and Russia reached
a significant increase during the first quarter of 2022,
as it increased by 28.7% compared to the same period of the previous year,
and thus the volume of trade exchange reached to $38.17 billion

 

artical name European emergency plan goes into effect

 

 

 

 

 

 

 

“Google” services return to work after a malfunction And “WhatsApp adds a new feature And the share of “Twitter” is rising

 

Google services are down for thousands of users

According to a report by the Downdetector website,
which is interested in monitoring outages in Internet services around the world,
a disruption in the services of the Google search engine was noticed,
and this holiday affected thousands of users on Monday
According to the site, it received reports from more than 40,000 people
that they encountered a problem in accessing the Google search engine owned by Alphabet.
It did not receive any response to a request from Reuters for comment on the matter.

 

Google services back to work

 

After the outage that began on Monday and into the beginning of Tuesday,
Google said in a statement: We are aware of a software update issue that occurred today and
briefly affected the availability of Google Search and Maps, and we apologize for the inconvenience.
Services were down in countries such as the US, Australia, UK and Singapore.

 

A new feature in “WhatsApp” allows the user to exit groups without alerting members

As part of the developments that WhatsApp is making in order to satisfy users,
it has added a new feature that allows users to leave any group without warning the members of this group,
and only those responsible for these groups will be notified,
now the feature is being worked on and is expected to be implemented within a month of Now

And the CEO of “Meta” and the owner of “WhatsApp” – “Mark Zuckerberg”:
that the company continues to build new ways to protect your messages and keep them private
and secure such as face-to-face conversations

It is also currently working on testing the
“disable screen capture” feature for self-hide messages,
which allows the receiver to open them only once.

 

Twitter’s stock rises after Musk’s comments

 

During Monday’s sessions, “Elon Musk” the possibility
of executing the Twitter acquisition deal in the event
that the evaluations of fake accounts are proven to be true

Musk sets this condition, which is that if Twitter is able to provide evidence and take random
samples from 100 accounts and confirm that they are all real accounts,
this condition will make me complete the purchase transaction based on the original terms

He also indicated in his tweet: that he had been tricked into signing
the deal to buy the social media company,
saying that it was allegations “unbelievable and contrary to the truth.”

With this positive news, Twitter’s stock rose to $42.94, by about 1%,
after recording a price of $43.50 during the session on Monday.

 

 

artical name European emergency plan goes into effect

 

 

 

 

 

 

 

 

Oil falls while Asian stocks rise

Oil falls while Asian stocks rise with European indices falling as the US dollar rises

 

Oil prices continued their latest decline after suffering the worst week since April due to concern
that global demand was stalling as central banks continued to tighten,
while Asian stocks rose slightly,
and the US currency rose against a basket of other currencies with gold prices declining.

 

topic

Oil prices fall slightly after rising the day before

Asian stocks rise and buyers concerned with markets wait for the US inflation test

European markets open unsurprisingly low

 

 

 

 

 

 

 

 

 

Oil prices fall slightly after rising the day before

 

By this morning, Brent crude futures for October fell by $0.22,
or 0.23 percent on the London Futures Exchange, to $96.43 per barrel,
and on Monday Brent crude rose by $1.73, up 1.8 percent to $96.65 a barrel.

 

WTI futures prices for September at this time in electronic
trading on the New York Mercantile Exchange
(NYMEX) fell by $0.23, or 0.25 percent to $90.53 per barrel. 

 

During the previous session, the futures contract rose by $1.75,
or 2 percent to $90.76 per barrel.

 

In the analysts’ view, the market at Tuesday’s main trading session is likely to focus
on the prospects of a US-Iran deal on the nuclear issue,
potentially providing additional oil barrels.

 

The previous day, Western media reported that EU diplomats had drafted
the final text of the document on the restoration of the nuclear deal with Iran
and believed that the parties must now make a final decision.

 

In addition, investors are concerned about the demand situation,
despite the fact that oil demand in China has begun to rise,
energy imports into the country remain at low levels
due to ongoing coronavirus-related restrictions.

 

China imports 8.79 million barrels of oil per day in July,
more than the June figure, which was the lowest in four years,
but 9.5 percent lower than July 2021, as shown on Monday.

 

 

 

 

 

 

 

 

 

 

 

 

Asian stocks rise and buyers concerned with markets wait for the US inflation test

 

Most Asian stocks recovered slightly from their recent losses on Tuesday,
while Japanese markets lagged the weak results from investment giant Softbank Group TYO: 9984.

 

The Nikkei 225 index fell by nearly 1 percent,
and SoftBank was among the worst performers after posting a record loss in the April-June quarter.

 

The investment firm’s stocks fell by 7.5 percent by 0505 GMT.

 

Hong Kong’s Hang Seng rose the most among its peers,
rising by 1 percent as stocks of heavy tech companies recovered from recent lows.

 

Regional markets ignored weak signals from Wall Street overnight,
which closed largely unchanged after a volatile session. 

 

The CPI is expected to settle at 8.7 percent for July,
down slightly from 9.1 percent the previous month.

 

While this decline will indicate that inflation likely peaked,
inflation will remain at its highest level in 40 years,
and the Federal Reserve expects to consider reading the consumer price index
in its plans to raise interest rates in September.

 

China’s Shanghai Shenzhen CSI 300 index rose by 0.3 percent,
ahead of Wednesday’s inflation reading,
and the Shanghai Composite Index rose by 0.3 percent.

 

Contrary to rising prices worldwide,
China is expected to rise only slightly with the consumer price index inflating to a four-year minimum,
but 9.5 percent lower than July 2021, as shown on Monday.

Producer price inflation could have fallen in July due to several COVID-19 lockdowns imposed earlier in the year.

 

Australia’s ASX 200 lagged behind its counterparts in the Asia-Pacific region,
rising by 0.1 percent, with the latest special survey showing consumer confidence
at its lowest level since the 2020 COVID-19 pandemic. 

 

Asian stocks made modest gains on Tuesday as buyers were hampered by persistent global cost pressures,
as investors shifted their focus this week to the United States,
inflation data and the prospects of the Fed adding more severe rate increases.

 

The unexpectedly strong United States excluded jobs data on Friday from July risk in the United States,
and the consumer price report is due on Wednesday, especially for the Fed’s policy outlook.

 

 

 

 

 

 

 

 

 

 

 

 

European markets open unsurprisingly low

 

European markets were poised for a lower open,
with Eurozone Stoxx 50 futures falling by 0.16 percent,
German DAX futures falling by 0.16 percent,
and FTSE futures falling by 0.12 percent.

 

The Dow Jones Industrial Index rose by 0.09 percent
while the S&P 500 declined and the Nasdaq Composite (.IXIC) fell by 0.1 percent.

 

The bonds also received a safe haven offer due to concern over Beijing’s military conflict against Taiwan
under days of Chinese military exercises across the island.

 

The yield on the benchmark 10-year Treasury note rose to 2.7608 percent
compared with the United States, which was close to 2.763 percent on Monday.
The two-year yield, which rose with traders’ expectations of higher interest rates on federal funds,
rose to 3.2056 percent compared with the United States, which is close to 3.216 percent.

 

The dollar index, which measures the greenback against a basket of other major
trading partners’ currencies, rose to 106.35.

 

The dollar’s rally was a setback for gold,
although it managed to bounce back from Friday’s lows and traded at $1785.67 per ounce.

Asian stocks rise with the rise of US indices

Asian stocks rise with the rise of US indices and the dollar’s decline and Brent is at $107.37 per barrel

 

On Thursday morning, oil prices rose on data on declining US energy supplies,
while the US dollar fell to its lowest level against the yen as Asian stocks and
US indices rose on the back of the Federal Reserve’s decision.

 

topıc

Brent price rises to $107.37 per barrel

Asian stock markets are rising

US indices rise due to Fed decision

The dollar declines to a three-week low against the yen

 

 

 

 

 

 

 

 

Brent price rises to $107.37 per barrel

 

The US Department of Energy reported that the country’s oil inventories fell last week by 4.52 million barrels,
gasoline by 3.3 million barrels and distillates by 784 thousand barrels. 

 

Analysts expected oil inventories to fall by 1.5 million barrels,
gasoline by 1 million barrels and distillates by 500 thousand barrels.

 

By Thursday morning, September Brent crude futures rose by $0.75, or 0.7 percent on the London Futures Exchange,
to $107.37 per barrel.

 

WTI futures prices for September at this time in electronic trading on the New York Mercantile Exchange
(NYMEX) rose by $0.98, or 1.01 percent to $98.24 per barrel. 

 

US oil production rose by 200 thousand barrels per day (BPD) last week to 12.1 million BPD,
exports increased by 21 percent, reaching a record 4.55 million BPD,
and imports fell by 5 percent, reaching 6.14 million BPD.

 

Analysts say a decline in imports and increased exports led to a sharp decline in US oil inventories,
and a decline in gasoline and distillate inventories showed demand for motor fuel rose last week.

 

 

 

 

 

 

 

 

 

 

Asian stock markets are rising

 

Most stock markets in the Asia-Pacific region rebounded on Thursday,
with the exception of the Hong Kong index,
as investors assess the results of the US Federal Reserve meeting.

 

The Fed raised interest rates by 75 basis points, as expected, to 2.25 – 2.5 percent,
and stressed that it expected further tightening of monetary policy.

 

The regulator’s management noted weak production and
spending indices in the US economy while noting strong growth in the number of jobs in recent months
while maintaining low unemployment rates.

 

Hong Kong’s Hang Singh index fell by 0.6 percent at 8:10 a.m. GMT,
while the Shanghai Composite Index rose by 0.6 percent.

 

In Hong Kong, construction and development stocks are the lowest due to the ongoing crisis in the country’s real estate sector.

 

Japan’s Nikkei 225 index rose by 0.26 percent by 8:15 GMT.

 

South Korea’s Kospi Index rose by 0.8 percent during Thursday morning trading,
and Australia’s S & P/ASX Index 200 rose by 1 percent.

 

artıcal name Asian stocks rise with the rise of US indices

 

 

 

 

 

 

 

 

 

US indices rise due to Fed decision

 

US stock indices ended trading on Wednesday with active growth,
and investors assessed large corporate reports
and the results of the July meeting of the Federal Reserve System (FRS).

 

The regulator’s management noted weak production and spending indices in the US economy
while noting strong growth in the number of jobs in recent months
while maintaining low unemployment rates.

 

Markets then accelerated growth,
responding positively to Fed Chairman Jerome Powell’s speech.

 

“The central bank does not rule out a stronger rate hike in the future,
if the data received is favorable,” Powell said during the press conference.

 

In the meantime, he provided an optimistic assessment of the US economy’s situation,
noting that it was not in recession,
*and there were reasons to expect a strong performance in the year’s second half.

 

Texas Instruments market value increased by 6.7 percent and the semiconductor component developer
and manufacturer increased its fourth-quarter net profit by 19 percent,
urging revenue estimated at 14 percent.

 

The Dow Jones Industrial Index rose by 1.37 percent to 32197.59 points,
the S&P 500 rose by 2.62 percent, to 4023.61,
while the Nasdaq Composite jumped by 4.06 percent to 12032.42.

 

artıcal name Asian stocks rise with the rise of US indices

 

 

 

 

 

 

 

 

The dollar declines to a three-week low against the yen

 

On Thursday, the dollar fell to a three-week low against
the yen after Federal Reserve Chairman Jerome Powell eased investors’
concerns about continued monetary tightening.

 

The greenback fell to a low of 135.105 yen,
its weakest since July 6 after the Fed raised its benchmark interest rate by 75 basis points
as expected to near neutrality,
noting that although the labor market remains strong,
other economic indices have eased.

 

In its most recent trading, the dollar fell by 0.8 percent to 135.525 yen.

 

The two-year Treasury yield, which is particularly sensitive to policy expectations,
fell near this week’s low of 2.9979 percent,
remaining about 20 basis points above the 10-year yield
and widely seen as a sign of an imminent decline.

 

The United States dollar index,
which measures the greenback against six counterparts,
including the Japanese yen, fell by 0.05 percent,
declining to 106.31 after falling by 0.59 percent overnight.

 

The euro, the index’s most weighted currency,
was little changed at $1.02045, after rising by 0.82 percent overnight.

 

Sterling rose by 0.05 percent to $1.21640 after rising by 1.06 percent on Wednesday.

 

artıcal name Asian stocks rise with the rise of US indices

Asian stocks fall to 2-year low

Asian stocks fall to 2-year low and gold rises despite US dollar rally

Global stocks stalled, oil fell and the euro approached safe-haven parity with the dollar on Tuesday
as the prospect of further tightening by central banks
renewed coronavirus outbreaks in China and energy shortages in Europe sparked alarm among investors.

Evest follows market developments in the following report.

 

topic

Asian stocks declined on Tuesday morning

The dollar rises and the euro swinges

Gold falls on the rise of the dollar

 

 

 

 

 

Brent price rises above $100 per barrel

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell by 1.3 percent to a two-year low
while Japan’s Nikkei fell by 2 percent.

Futures also pointed to a week’s opening in the United States and Europe,
with the S&P 500 e-minis in the United States falling by 0.6 percent
Nasdaq futures falling by 0.7 percent, Euro Stoxx 50 futures across the region falling by 0.8 percent
and FTSE futures falling by 0.44 percent.

This week’s focus will be on macro data including U.S. consumer inflation on Wednesday
and comments from Fed officials as investors look for evidence of the outcome
of the Fed’s next policy meeting before officials a pre-meeting blackout period.

A high inflation reading could add pressure on the Fed to increase its already strong pace of rate increases.

The fact that a growing number of Chinese cities
including the Shanghai mall, are adopting new COVID-19 restrictions starting this week to curb
new infections after finding the highly transmissible Omicron variant, is also among the issues at the top of the list of investors’ concerns.

Early on, Hong Kong’s benchmark Hang Seng index fell by 1.21 percent to its lowest since June 17.

Investors are concerned that the lockdown could be extended due to the war in Ukraine
further restricting European gas supplies and pushing the euro zone’s struggling economy into recession.

The yield on the benchmark 10-year Treasury note was 2.9595 percent,
after falling below 3 percent overnight as investors bought safe Treasury bonds under Wall Street’s sell-off.

Concern about growth was also weighing on oil, despite concern about supply scarcity.

Brent crude futures fell by $1.35, a decline of 1.3 percent, to $105.75 per barrel
while US West Texas Intermediate (WTI) crude was $102.64 per barrel, marking a decline of $1.45, or 1.4 percent.

 

 

 

 

The dollar rises and the euro swinges

 

The US dollar reached a new peak in two decades against key peers on Tuesday
boosted by safety offers and expectations of the Federal Reserve raising interest rates
while the euro was suspended near a 20-year low near the dollar.

The dollar index, a measure against a group of six currencies, rose by 0.25 percent at 108.43
and had earlier climbed to 108.47 points, the highest since October 2002.

The euro also fell to $1.0005 against the US dollar, moving closer to parity for the first time in 20 years
as investors worry that the energy crisis will push the region into recession.

Experts see the dollar as the international reserve currency, so when there is a risk of recession or a rise in volatility
the greenback is the currency people that people flock to because it is the safest.

Sterling similarly fell by 0.25 percent to $1.18645, having earlier fallen to a two-year low of $1.186.

The recent devaluation of the euro appears to have been driven largely
by a market reassessment of the possibility of a further downturn in growth in the eurozone,
which has been inflated by energy problems, a longer-than-expected war and doubts about the ECB’s anti-retail tool.

The weakness of the euro has been a big factor pushing the dollar index higher
and the greenback’s designation as a safe haven has also supported concerns about growth elsewhere as well
with China, in particular, applying stringent coronavirus non-spread policies to contain the new outbreak.

Arguably the biggest factor in the dollar’s rise is the view that the Fed will raise interest rates faster and more than its peers.

The Fed is expected to raise rates by 75 basis points for the second time in a row at its July 26-27 meeting.

Elsewhere, the dollar fell by 0.09 percent to 137.28 Japanese yen, after Monday’s jump to a 24-year high of 137.75.

The Australian dollar fell by 0.22 percent to $0.6728, earlier agreeing to a two-year low of $0.6716
on Monday in the light of falling commodity prices and China’s new COVID restrictions.

 

 

 

Gold falls on the rise of the dollar

Gold rose on Tuesday morning in Asia, but moves were small after the US dollar continued to a 20-year high.

and Gold futures rose 0.04 percent to $1732.45 by this morning,
while gold prices fell to their lowest level since September 30 at $1730.42 per ounce during the previous session.

The president of that the Atlanta Fed said the US economy could handle high-interest rates
as he reiterated his support for raising the rate again this month.

In other precious metals, silver fell by 0.67 percent
platinum declined by 1.16 percent, and palladium by 1.56 percent.

Nikkei at a two-month high and Oil rises

Nikkei at a two-month high and Oil rises

Oil prices rose on Monday as Saudi Aramco raised prices more than expected for Asian buyers
The market made this decision in reference to Saudi Arabia’s confidence in the growth of oil demand
according to Bloomberg

Evest follows market developments in the following report

 

topic

Nikkei closes at a two-month high

Oil rises after Aramco announces oil price hikes

France considers replacing Russian oil with Emirati

Japan continues its stimulus monetary policy

 

 

 

 

Nikkei closes at a two-month high

Japan’s Nikkei average rose to a two-month closing high on Monday
with energy stocks rebounding as oil prices soared and tech brands recovered
while gains in US and Chinese stock futures also offered support

The Nikkei ended 0.56% higher at 27,915.89
after starting the session down at 27,523.95 after a technology-led sell-off on Wall Street last weekend

The technology sector was the only sector in the Nikkei index to close lower
It stabilized down 0.07% but fell sharply from its morning lows
Chipmaking equipment giant Tokyo Electron turned into a 1.55% gain, while Advantest Corp peers rose by 0.55%

The energy sector was by far the best performing, rising by 3.21%
Idemitsu Kosan and ENEOS rose by 5.41% and 4.76% respectively

Of the 225 stocks that make up the Nikkei index, 130 rose, 86 fell, and nine were flat

The broader Topix index rose by 0.31 percent to 1939.11

US Nasdaq futures rose by 0.75% after the index lost 2.67% on Friday as the strong US jobs report raised concern
about the Fed’s tightening highly aggressive policy
S&P futures pointed to a 0.6% rebound, after a 1.63% decline for the stock index on Friday

artical name Nikkei at a two-month high and Oil rises

 

 

Oil rises after Aramco announces oil price hikes

Saudi Aramco announced on June 5 that it will raise the prices of all grades of oil exported in July to countries in Asia
northwest Europe and the Mediterranean
Oil prices exported to the United States will remain at the June level next month

The cost of the light Arab item supplied to Asia will increase by $2.1 per barrel
Thus, it will cost $6.5 per barrel more than the Oman and Dubai oil basket
Experts surveyed by Bloomberg projected an average rise of $1.5 per barrel

Brent crude futures for August rose by $0.89 (0.74%) on the London Futures Exchange
to $120.61 per barrel. On Friday, the futures contract rose by $2.11 (1.8%) to $119.72 per barrel

West Texas Intermediate crude futures for July rose by $0.86 (0.72%)
to $119.73 per barrel in electronic trading on the New York Mercantile Exchange (NYMEX)
During the previous session, West Texas Intermediate crude rose by $2 (1.7%) to $118.87 per barrel

As a result of last week, the price of Brent crude rose by 3.6%, that of West Texas Intermediate – by 3.3%

Beijing authorities announced at the weekend that the situation in the Chinese capital had returned to normal
and most of the coronavirus restrictions would be lifted
In particular, on June 6, public transportation will resume in most areas of the city, allowing people to return to their jobs

 

 

 

France considers replacing Russian oil with Emirati

French Economy and Finance Minister Bruno Le Maire said that Paris is negotiating
with the UAE to ensure that the country is supplied with oil instead of Russia

“We are now in talks with the UAE,” the minister said on Sunday on Europe 1 radio

He noted that France is looking for sources to replace Russian oil
Le Maire noted that the authorities consider also how to replace Russian gas

On 3 June, EU countries approved a plan to phase out most of their oil imports from Russia within six months
as part of the sixth round of sanctions

“The EU has decided to ban the purchase, import and transport of crude oil and some petroleum products from Russia
and The oil abandonment process will take six months and the abandonment of petroleum products will take eight months
” the Council of the European Union said in a statement

In the meantime, it was emphasized that temporary exemptions were provided for individual EU states

 

 

Japan continues its stimulus monetary policy

Bank of Japan President Haruhiko Kuroda has confirmed his willingness to continue applying the current stimulus monetary policy
according to the Wall Street Journal

He told a press conference that the Bank of Japan intends to create conditions for stable inflation in the country’s economy
as the reason for the acceleration in consumer price growth now lies in individual factors, such as rising energy prices

“The Bank of Japan is seriously committed to continuing monetary easing that will allow it to create a macroeconomic environment
where wages will rise and the recent inflation outlook will lead to sustained inflation,” Kuroda said

Japanese consumer prices rose by 2.5% year-on-year in April, the fastest pace since October 2014
exceeding 2% for the first time since September 2008
In this regard, there was a market expectation that the Bank of Japan might begin to tighten policy
after the world’s largest central banks to prevent a further weakening of the yen

However, official data showed that Japan’s core inflation – consumer prices excluding food and energy
– was only 0.8% year-on-year in April

In response to reporters’ questions, Kuroda said the central bank maintains a target inflation rate of 2%
He said the gradual weakening of the yen would be a positive factor for the country’s economy

The Bank of Japan maintains the short-term interest rate on commercial bank deposits at 0 .1% annually
and the target yield on 10-year government bonds is close to zero

 

The US stocks rebound and the Asian declines

The US stocks rebound and the Asian declines and oil falls with increasing concern from China

US stocks rose strongly on Monday with a general increase in risk appetite in financial markets on signs
that the United States could lift some trade restrictions on China imposed
by former U.S. President Donald Trump’s administration

Evest follows market developments in the following report

 

topic

US stocks strong positive performance

Oil declines with increasing concern from China

Expected Statistics

Asian stocks continue to fall

 

 

 

US stocks strong positive performance

 

The Dow Jones Industrial Index rose by 618.34 points (1.98%) as the market closed Monday, to 31880.24
Standard & Poor’s 500 rose by 72.39 points (1.86%) to 3973.75 points
The Nasdaq Composite Index rose by 180.66 points (1.59%) to 11535.27

 

Current US President Joe Biden said the issue of tariffs on Chinese merchandise imports to the United States was under consideration
and that he planned to discuss it with Treasury Secretary Janet Yellen after returning from an Asian tour, Bloomberg reported
Investors interpreted Biden’s words as a signal of possible elimination of some tariffs

 

On Monday, statements by JPMorgan Chase & Co. supported the market
increasing traders’ optimism about the prospects of the US economy

 

In recent weeks

 U.S. stock indexes have fallen dramatically on expectations of swift tightening of monetary policy by the Federal Reserve system
as well as concern that high inflation will affect corporate profits
Last Friday, the Standard & Poor’s index came close to ending the session in a downtrend zone, below the January peak of 20%
but managed to bounce back upwards at the end of the session

 

“The market is set to rally for some time now,” Dow Jones quotes on stocks in the past two months

 

JPMorgan stocks rose by 6.2% in Monday trading
The largest U.S. bank by assets raised its 2022 net interest income guidance to $56 billion from $53 billion previously projected

 

JPMorgan Bank Chief Financial Officer Jeremy Barnum said at an investor event that the bank’s loan losses
are likely to remain very low this year because Americans have not yet exhausted
the cash stock that has accumulated during the pandemic

 

In the meantime, speaking also at the event, the bank’s chief executive James Dimon said
that the US economy remained strong and that potential barriers to growth were not intractable

 

The S&P Financial Companies Sub-Index rose by the end of trading by 3.2%
showing the best dynamics among 11 sectoral index indicators

 

Citigroup Inc.‘s stock price rose by 6.1%, Goldman Sachs Group Inc, by 3.2%, and Bank of America Corp. by 5.9%

 

 

 

 

Oil declines with increasing concern from China

 

Oil prices declined on Tuesday as concern continued that China’s demand was slumping
due to tight quarantine measures introduced to curb the spread of the coronavirus

Measures to support the economy, including corporate tax breaks and car purchase tax cuts announced
by the Chinese authorities the previous day, did not impress investors, Bloomberg notes

Analysts at UBS Group AG cut China’s GDP growth forecast for the current year from 4.2% to 3%
and JPMorgan experts cut it from 4.3% to 3.7%

 

In the meantime, the imposition of an embargo on the import of Russian oil by European Union countries has so far stopped
which indicates that “we will not see sanctions in the near future,” the expert says

 

The cost of the July Brent oil futures on the London Stock Exchange Futures on Tuesday is $112.64 per barrel
$0.78 (0.69%) lower than the closing price of the previous session
As a result of Monday’s trading, these futures rose by $0.87 (0.8%) to $113.42 per barrel

 

The price of oil futures for July in electronic trading on the New York Mercantile Exchange
(NYMEX) is $109.56 per barrel, $0.73 (0.66%) lower than the final value of the previous session
On Monday, the cost of these futures rose by $0.0 to $110.29 per barrel

 

In the meantime, US President Joe Biden’s administration is considering releasing
diesel from strategic inventories in order to contain a sharp price rise

White House press secretary Emily Simmons said, if necessary
the United States could quickly release about 1 million barrels of diesel fuel

 

 

 

Expected Statistics

On Tuesday, a wide range of statistics on business activity will be released in Germany, France
the eurozone and the United States – a preliminary indicator of the industry and sector PMI for May

Most likely, trade activity in European countries and the United States will slow significantly in its growth in May
which is linked to higher inflation and difficulties in the supply of production
Thus, negative sentiment will continue in the world’s markets

artical name The US stocks rebound and the Asian declines

 

 

 

Asian stocks continue to fall

In the meantime, Asian stocks fell on Tuesday (Japan’s Nikkei index fell by 0.9%
Korea’s Kospi index by 1.6%, China’s Shanghai composite by 2.3%
and Hong Kong’s Hang Seng lost 2.3%) on inflation concerns
surpassing optimism about the prospect of some countries lifting part of China’s trade restrictions

 

Investors continue to monitor the situation in Ukraine and its impact on commodity prices
as well as assess the potential for negative consequences for the world economy under China’s closures

artical name The US stocks rebound and the Asian declines

Oil compensates for some of its losses

Oil compensates for some of its losses under a European desire to dispose of Russian crude and Asian negative dynamics

Oil prices rose and resumed their gains since the end of March, after a 3-day decline, in expectations to free fuel from IEA member states’ reserves

Evest follows market developments in the following report

 

topic

The Federal Customs Service delays the publication of its monthly import report for an unknown reason

Russian actions to support the ruble

EU wants to phase out Russian oil imports

Oil renews its highest levels since the end of March

Investors are risk-averse under a large number of geopolitical tensions

Data expected this week

Negative dynamics of Asian indices under the closure of a large number of global exchanges

 

 

 

 

The Federal Customs Service delays the publication of its monthly import report for an unknown reason

The Federal Customs Service delayed the publication of statistics on imports of goods from countries outside the Commonwealth of Independent States for March 2022
and The Federal Customs Service typically publishes data on imports from countries outside the Commonwealth
of Independent States over the past month in the first week after the reporting month
Thus, the Federal Customs Service published import statistics for February on March 5
and for January – on February 3

Import statistics from non-CIS countries for March have not yet been published until April 15
The reason for the delayed publication of import statistics for March
as well as the possible timing of their release, has not been commented upon

 

 

 

Russian actions to support the ruble

At the beginning of the week
it became known that the Bank of Russia had suspended the publication of monthly information
on Russian foreign trade in goods (according to the balance of payments methodology)
In the Russian Balance of Payments assessment for the first quarter of 2022, published on April 11
 foreign trade data in goods was combined with data on foreign trade in services in one index

Elizaveta Naumova, the chief analyst at Alfa-Bank
told Interfax that the ruble ends the week below $80/1
while the dollar-ruble pair remains volatile, reflecting unconventional market conditions 

Dmitry Peskov, the presidential press secretary
said that Russia would turn trade with other countries into national currencies
and that work is very complicated, and it is too early to talk about timing and the type of goods
“Yes, of course, according to the president’s instructions,” he told reporters in response to a question in this regard

On the other hand, the regulator said in a statement that the Central Bank of the Russian Federation recommended that banks and non-credit financial institutions refuse to pay dividends in 2022 due to the difficult economic situation

Banks may not comply with capital adequacy ratios due to the non-payment of dividends and bonuses in the current environment
In 2022, Russian banks will be able to finance the purchase of assets from non-residents regardless of risk ratios
In addition, the Central Bank of the Russian Federation allowed banks not to create reserves for assets embargoed by sanctions until the end of the year

 

artical name Oil compensates for some of its losses

 

 

 

EU wants to phase out Russian oil imports

The European Union is phasing out Russian oil imports, The New York Times writes, citing unnamed European diplomats and officials
and “The Union is now moving towards a phased embargo that will allow Germany and other countries time to negotiate with alternative suppliers,” the newspaper wrote

The New York Times noted that a similar approach had been used when an embargo on Russian coal – four months for a transition period
How ever The Council of the European Union has reported that the ban on coal supplies from Russia, stipulated in the fifth package of sanctions, will come into force from August 2022

Oil renews its highest levels since the end of March

The oil market was not trading on Friday, following Thursday’s results, as prices rose after a 3-day decline, hitting the highest levels since the end of March
Brent crude futures for June at the close of trading on Thursday were priced at $111.66 per barrel, 2.7% higher than the previous close, and WTI futures for May were priced at $106.05 per barrel, 2.2% higher than Thursday’s close

 

 

 

Investors are risk-averse under a large number of geopolitical tensions

Global sentiment is also characterized by increased restraint in risk appetite
In addition to the Ukrainian problem, market participants are concerned that the US Federal Reserve may move to a tighter pace of monetary policy normalization, higher commodity prices threatening to accelerate price increases, a shutdown in Shanghai in China due to the coronavirus outbreak, as well as increased tensions between Beijing and Washington over disagreements over Taiwan

From a fundamental standpoint, high geopolitical tensions and risks of sanctions expansion, including an embargo on petroleum products from Russia by the European Union, remain the main downside of the market, which leaders have already discussed on Thursday
In the meantime, the market may grow significantly if there are any hints of geopolitical improvements

 

Data expected this week

From this week’s macroeconomic data
it is worth noting the dynamics of China’s GDP for the first quarter
(growth is expected to accelerate on an annual basis and slow down on a quarterly basis)
retail sales, industrial production, and investment in fixed assets in China

In the United States, the first data on the housing market will be released for March
and in Germany and Russia – estimates of industrial inflation
in the eurozone – consumer inflation and industrial production, in the United Kingdom – retail sales

 

 

artical name Oil compensates for some of its losses

 

 

 

 

Negative dynamics of Asian indices under the closure of a large number of global exchanges

On Friday, negative dynamics of Asian stock indices prevailed
with Japan’s Nikkei 225 declining by 0.3%, South Korea’s Kospi by 0.8%
China’s Shanghai Composite Index negative by 0.45%
and Hong Kong and Australia’s Easter stock exchanges closed)

Pressure has been exerted on markets through lockdowns in several major cities in China
against the backdrop of the coronavirus outbreak again, as well as the situation in Ukraine

Exchanges in the US, UK, Germany, France and other European countries were closed on Friday due to the Easter holidays

The Director-General of the International Monetary Fund Kristalina Georgieva
said yesterday that the Russian-Ukrainian conflict threatens to undermine the global economic recovery
from the effects of the Covid-19 pandemic, exacerbating the consequences for most countries in the world
She urged global central banks to act decisively to control inflation before it became more difficult, Bloomberg said

Georgieva said the International Monetary Fund (IMF)
which begins its annual spring meetings on Monday
will lower its global economic growth forecast for this year and next
The consequences of the situation in Ukraine compel the IMF to worsen its 2022 forecast for 143 countries
which represents 86% of the world’s GDP

According to data released Friday by the U.S. Federal Reserve
 the country’s industrial output grew 0.9% in March
while experts surveyed by Trading Economics expected average growth of 0.4%

artical name Oil compensates for some of its losses

Asian and American indices are mixed and oil is falling against the backdrop of the progress of the American-Iranian talks

Asian and American indices are mixed and oil is falling against the backdrop of the progress of the American Iranian talks

Asian and American indices are mixed and oil is falling against the backdrop of the progress of the American-Iranian talks: The White House stated that US President Joe Biden and German Chancellor Olaf Schulz discussed the Ukrainian crisis and looked at strengthening the eastern presence of NATO in the event of Russia’s invasion of Ukraine.

Evest follows market developments in the following report.

Topics:

Mixed indices in Wall Street and Asia

Asian indices

Nvidia breaks the previous quarter’s record in terms of revenue

Oil declines amid progress in US Iran talks

The positive movement in the talks between the United States and Iran

 

Mixed indices in Wall Street and Asia

US stock indices ended trading on Wednesday without a single trend.

Traders analyze the minutes of the January Fed meeting.

The Dow Jones Industrial Index fell by 54.57 points (0.16%) at the close of trading to 34934.27 points.

Standard & Poor’s 500 rose by 3.94 points (0.09%) to 4475.01. The Nasdaq Composite Index lost 15.66 points (0.11%) to 14124.09.

The Fed is preparing to consider raising interest rates further this year along with another monetary policy tightening if inflation remains high,
according to a protocol published on Wednesday evening. 

While members of the Federal Open Market Commission (FOMC) continue to predict a year-round inflation slowdown as monetary policy tightens,
many believe more crackdowns will be required if the situation turns out to be the opposite.

On Wednesday, the market also focused on the geopolitical situation in Eastern Europe. 

In the meantime, investors analyzed the latest statistical data from the United States.

The Department of Commerce stated that retail sales in the country jumped 3.8% in January compared to the previous month.

Analysts surveyed by Bloomberg, as well as economists who took part in the Trading Economics poll, predicted an average 2% increase in the index. On an annual basis,
total retail sales in the country rose by 13% last month after jumping by 16.7% the previous month.

Industrial production in the United States increased in January by 1.4% compared to the previous month, according to Federal Reserve Board data.

Experts surveyed by Wall Street Journal predicted an average 0.5 % increase. Participants in Trading Economics predicted a 0.4% rise.

In December, industrial production in the United States fell by 0.1%. Industrial production rose in annual terms by 4.1% after rising by 3.8% in December.

Asian indices

In Asia, stock indices mixed slightly on Thursday, with Australia’s S & P/ASX 200 rising by 0.56%, China’s Shanghai Composite by 0.32%,
Hong Kong’s Hang Seng by 0.29%, South Korea’s KOSPI by 1.44% and Nikkei by 1.44%.

 

Nvidia breaks the previous quarter’s record in terms of revenue

US graphic processing unit manufacturer Nvidia Corp ended the fourth quarter of fiscal 2022,
with record-breaking revenue for the previous quarter that was above market expectations.

Net income for the quarter ended January 30 more than doubled to $3 billion, or $1.18 per stock,
from $1.46 billion, or 58 cents per stock, according to a company press release. 

Compared to a similar period in the previous year, adjusted profits rose to $1.32 per stock from 78 cents.

Revenue jumped 53% to a record $7.64 billion from $5 billion last year. The index broke the previous quarter’s record of $7.1 billion.

Analysts surveyed by FactSet projected average adjusted profits of US $1.23 per share on earnings of US $7.42 billion.

The company itself projected an average revenue of $7.25 billion to $7.55 billion in November.

The company’s data center division increased its revenue in the last quarter by 71% to $3.26 billion,
while the gaming business revenue rose by 37% to $3.42 billion,
in both cases the previous quarter’s records were also broken. Experts estimated it to be $3.18 billion and $3.36 billion, respectively.

However, Nvidia noted that supply chain problems, global semiconductor shortages and manufacturing capacity ,
are expected to be an obstacle for the company this year.

Nvidia plans to generate revenue in the region of $ 7.94- 8.26 billion in the first fiscal quarter, while forecasts are $ 7.31 billion.

Nvidia stocks fell by 2.7% in additional trading. Over the past 12 months,
the company’s capitalization increased by 73% (to $662.38 billion), while Standard & Poor’s added only 14%.

Oil declines amid progress in US Iran talks

Oil prices declined on Thursday amid growing optimism that the United States and Iran will soon be able to reach an agreement that will return Iranian oil to the world market.

Tehran’s chief negotiator, Ali Bagheri Kani, tweeted the previous day that the two parties were “closer than ever to an agreement” in talks on Iran’s nuclear program.

Iran is also preparing for Asia’s official return to the oil market, according to Bloomberg, representatives of the state-owned National Iranian Oil Company.

A meeting was held with South Korean refineries to discuss potential supplies.

The Brent mix fell to $93.16 per barrel after a sharp decline in prices the previous day.

 

The positive movement in the talks between the United States and Iran

“The positive movement in the talks between the United States and Iran is aimed at calming the oil market to some extent.

Although there is still no agreement, prices are being reduced by news of progress in the negotiations and expectations,
that this will allow oil to return to the market in quantities up to 900 thousand barrels per day by December,” said Claudio Galimberti, Senior Vice President of Rystad Energy.

The April futures price for Brent crude on London Futures Exchange is $93.65 per barrel, $1.16 (1.22%) lower than the closing price of the previous session.

As a result of Wednesday’s trading, these futures rose by $1.53 (1.6%) to $94.81 per barrel.

The price of West Texas Intermediate crude futures for November in electronic trading on the New York Mercantile Exchange (NYMEX) is $92.39 per barrel,
which is $1.27 (1.36%) lower than the final value of the previous session. On Wednesday, the cost of these futures rose by $1.59 (1.7%) to $93.66 per barrel.

The previous day, oil prices rose against the backdrop of ongoing concerns in the West about a possible escalation of the conflict over Ukraine,
despite data from the US Department of Energy showing an unexpected increase in US inventories.

On the other hand, oil reserves in the United States rose for the week ending February 11 by 1.12 million barrels,
while analysts expected inventories to decline by an average of 2.17 million barrels.