Market Movements and Their Impact on Global Investments

Market Movements and Their Impact on Global Investments: In today’s news report, we examine the key developments in global markets.
We examine how crypto startups continue to attract investments despite a market slowdown.
We also review the International Energy Agency’s revision of oil refinery profit estimates and,
finally, the impact of MSCI’s reduction of China’s weight in its indices on the Chinese economy.

 

Contents

Crypto Companies
International Energy Agency

MSCI

 

 

Crypto Companies Raise More Funds Despite Market Slowdown

Crypto startups raised more funds but closed fewer deals during the second quarter of the year,

reflecting a broader slowdown in the crypto asset world.
Data from PitchBook reveals that venture capital investments in
crypto companies reached $2.7 billion in the three months ending in June,
a 2.5% increase from the first quarter but a 9.8% year-over-year decline.

 

International Energy Agency Cuts Refinery Profit Estimates After Methodology Adjustment

The International Energy Agency significantly lowered its profit estimates for oil refineries.
This comes after it announced changes to its methodology for calculating processing margins starting in 2020.
The new method includes regional utility costs but does not account for all energy or other significant expenses.

 

 

 

MSCI to Reduce China’s Weight and Exclude Dozens of Stocks from Its Indices

MSCI continues to exclude Chinese company stocks from its indices, and it plans to remove 60 companies this month.
This move will pave the way for a further reduction in China’s share in a major emerging markets index.
The changes highlight pessimistic expectations for the world’s second-largest economy,
as Chinese stocks risk losing their presence in emerging market asset portfolios.

 

 

Market Movements and Their Impact on Global Investments

Gold Continues to Climb Ahead of U.S. Inflation Data Release

Gold Continues to Climb Ahead of U.S. Inflation Data Release: Gold prices are rising during today’s Thursday trading amid anticipation
of the release of June U.S. inflation data. The data will help investors determine the Federal Reserve’s future path
.

 

Content

International Energy Agency
UK GDP 

Gold continues to rise

 

 

 

 

The International Energy Agency announces a slowdown in oil demand in the second quarter.

The International Energy Agency announced a slowdown in global oil demand growth to 710,000 barrels per day
on a year-on-year basis in the second quarter of 2024, marking the slowest increase since the fourth quarter of 2022 amid a contraction in Chinese consumption.

 

UK GDP rises to 0.4% in May

The UK’s GDP increased by 0.4% in May after stabilizing in April.
The UK’s GDP grew by 0.9% in the three months ending in May.

 

Gold continues to rise amid anticipation of the U.S. inflation data announcement

Gold prices are rising during today’s Thursday trading amid anticipation of the release of June U.S. inflation data.
The data will help investors determine the Federal Reserve’s future path.

 

Gold Continues to Climb Ahead of U.S. Inflation Data Release

What to Watch in Oil Markets in the Second Half of the Year

What to Watch in Oil Markets in the Second Half of the Year: OPEC+’s decision to increase production earlier than expected may lead to a decline in oil prices in the second half of the year.
The U.S. Energy Information Administration has lowered its forecast for Brent crude oil prices this year,
and the International Energy Agency has reduced its demand forecast.
For consumers, increased OPEC+ production may help control recently fallen gasoline prices.

 

Content

Changes in Price Forecasts

Impact of Increased Production

Shifting Expectations

Impact of Divergent Demand Forecasts

Clean Energy Investments

 

 

 

Changes in Price Forecasts

Many energy industry analysts expected a recovery in global oil prices in the second half of this year,
with Brent crude rising to over $90 a barrel.
However, OPEC+’s announcement that it would start raising production limits by October changed these expectations,
leading to a drop in oil prices.
Despite Brent crude recently rising above $85 a barrel,
the announcement altered the oil market equation for the year’s second half.

 

Impact of Increased Production

Mark Luschini, Chief Investment Strategist at Janney Montgomery Scott, said
the OPEC+ decision could curb gasoline prices and alleviate company inflationary pressures.
Brent crude prices had risen by 20% since the beginning of the year but fell below $80 in late May.
Analysts consider this decline temporary,
given the improvement in global economic activity and central banks’ expected interest rate cuts.

 

Shifting Expectations

Most Federal Reserve governors now expect only one rate cut this year.
With the possibility of increased production from OPEC+, Luschini has lowered his oil price forecast to $80-85 a barrel for the second half of the year.
Oil accounts for about half of the price of gasoline in the U.S., where the average price has fallen to $3.55 per gallon.

 

 

 

 

 

Impact of Divergent Demand Forecasts

The U.S. Energy Information Administration has lowered its forecast for average Brent crude prices to $84 a barrel,
and the International Energy Agency has cut its forecast for global demand growth.
OPEC indicates that demand will increase by 2.2 million barrels per day this year,
more than double the International Energy Agency’s estimates.
Summer stock drawdowns are expected to lift Brent crude to $80-90 a barrel by September.

 

Clean Energy Investments

The International Energy Agency expects global investment in clean
energy to be twice that in fossil fuels in 2024, potentially limiting oil gains.

 

What to Watch in Oil Markets in the Second Half of the Year