The oil keeps recovering and the euro is under new pressure

The oil keeps recovering and the euro is under new pressure The war in Ukraine led to a sharp decline in European stock market indices
However, according to Natixis, once good news of the war in Ukraine has emerged, the various factors supporting the European stock market will make European stock indices much better off

There is a high potential for a recovery in the European stock market indices

Evest follows market developments in the following report

topic

A sharp decline in European stock indices due to the Russo-Ukrainian war

Euro is under new pressure

Consumer prices rise 4.1% in South Korea

The oil keeps rising above $100 per barrel

A sharp decline in European stock indices due to the Russo-Ukrainian war

According to analysts, “the war in Ukraine led to understandably declining European stock exchange indices
increased risk aversion; Loss of growth in the eurozone due to inflation and supply problems
asset losses in some Russian companies

European stock market indices are supposed to be supported by
Significant financial support being provided; the fact that long-term real interest rates will be very negative for a long time
due to the European Central Bank’s weak response to inflation, which will accelerate the shift of investors from bonds to stocks
in addition to a lower wage-to-price index, which would protect corporate profits
the fact that the pre-war financial position of euro-zone companies in Ukraine was particularly strong due to the decline in net debt from cash reserves

According to experts: “We can expect European stock prices to recover quickly once a sign of the end of the crisis has emerged

Euro is under new pressure

The euro came under renewed downward pressure yesterday
The question of the additional sanctions that EU states will impose on Russia
and the implications for the EU economy is likely to have put pressure on the single currency
according to a Commerzbank report

According to the report: “While the risk of a halt to the import of individual energy goods or even a total energy embargo persists, the euro is likely to suffer

The European Central Bank’s announcement of the end-of-year termination of its expansionist monetary policy may not be helpful
Who knows what would happen until then in these turbulent times
The risks of the ECB changing its mind at the last minute remain
This makes it difficult to imagine the euro recovering on a sustainable basis in the short term

 

artical name The oil keeps recovering and the euro is under new pressure

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Consumer prices rise 4.1% in South Korea

Consumer prices in South Korea rose by 4.1% in March from the same month last year, according to the country’s Bureau of Statistics

This is the highest rate of increase in more than 10 years since December 2011
Analysts expected an average rise of 3.8%, according to Trading Economics
In February, prices rose by 3.7%

The acceleration of inflation is due to higher prices of energy resources and other types of raw materials
Consumer prices have risen by more than 3% since October last year, while the Bank of Korea’s target is 2%

The cost of petroleum products in March jumped by 31.2%, electricity
gas and water supply by 2.9%, and rental housing by 2%

The rise in consumer prices in March was 0.7% compared to the previous month, while the forecast was 0.4%

Prices excluding the cost of food and energy (the basic CPI index) rose last month by 2.9% on an annual basis and by 0.1% per month

The Central Bank of Korea expects inflation to rise in 2022 by an average of 3.1% compared to2.5% last year
The central bank has raised its prime interest rate three times (to 1.25% annually), since last August
to limit price growth and has given signs that it will continue to increase in the coming months

The oil keeps rising above $100 per barrel

Oil prices keep rising with expectations of new sanctions against Russia regarding events in Ukraine

US National Security Adviser Jake Sullivan said on April 4 that the US will announce new anti-Russian actions this week that could affect the energy sector
French President Emmanuel Macron and German Chancellor Olaf Schultz also called for new sanctions against Russia

The United States and the United Kingdom have previously imposed restrictions on Russian oil supplies
and many are awaiting some steps from Europe, whose reliance on Moscow in this area is very large

According to Bloomberg analysts
“Getting rid of Russian energy by Europe is not easy, so market concerns are exaggerated here”

Brent crude futures for June rose by $1.22 (1.13%) on the London Futures Exchange, to $108.75 per barrel
Brent crude rose by $3.14 (3 percent) to $107.53 per barrel on Monday

West Texas Intermediate crude futures’ prices for May rose at that moment by $1.23 (1.19%)
to $104.51 per barrel, in electronic trading on the New York Mercantile Exchange (NYMEX)


During the previous session

the futures contract rose by $4.01 (4%) to $103.28 per barrel

Concern over new restrictions on Russia was offset by the impact on the market of the decision
by the United States and other countries of the International Energy Agency (IEA)
to dispose of oil from strategic reserves, which contributed to the fall in oil prices last week

The record price hike by Saudi Aramco State was a sign of growing fuel demand worldwide in the face of the refusal of many Russian supply companies
And the day before, it announced that it would raise prices for all grades of exported oil to buyers from all regions in May

The cost of the light Arab item supplied to Asia will increase by $4.4 per barrel
This represents $9.35 more per barrel than the Oman and Dubai oil basket, which is a record
The premium of American buyers of the Arab light grade will also rise to a historical maximum – up to $5.65 per barrel to the value of the Argus Sour Crude Oil Index (ASCI)
The cost of all grades supplied to the United States will rise by $2.2 per barrel next month

 

artical name The oil keeps recovering and the euro is under new pressure