A considerable decline in the US budget deficit and oil declines as inventories rise
The United States Department of the Treasury said that the US budget deficit fell by 71% to $193 billion
in March compared to $660 billion in the same month last year
Evest follows market developments in the following report
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The US budget deficit fell 71% in March
Oil falls following US inventories rise
Dow Jones rises half a percent
Forecasts for FTSE opening lower
The US budget deficit fell 71% in March
Budget revenues jumped 18% to $315 billion
and revenue growth was driven largely by higher tax revenues under the economic recovery
In the meantime, expenditures fell by 45% compared to last year – to $508 billion
due to a reduction in state support measures
Last year, the government paid Americans $1400 per person in stimulus benefits under Covid-19 in March
In the meantime, the negative balance of the US budget fell by 61% in the first half of fiscal 2022
which began on October 1, compared to the same period a year earlier, to $668 billion
Since the beginning of the current fiscal year, the budget’s income has been $2.1 trillion, setting a new biannual record
The negative balance of the US state’s budget by the end of the fiscal year 2021
which ended on September 30, fell by 11.4% and reached $2.776 trillion (or 12.4% of GDP)
A year ago, there was a record deficit of $3.1 trillion
The last time we witnessed the country’s budget surplus was in 2001
Oil falls following US inventories rise
Oil prices fell moderately on Wednesday morning after a jump the previous day
Data from the American Petroleum Institute on US inventory growth last week supports investors
Brent crude futures for June fell by $0.15 (0.14%) on the London Futures Exchange, to $104.49 per barrel
Brent crude rose by $6.16 (6.3 percent) to $104.64 per barrel on Tuesday
By this time, West Texas Intermediate crude futures’ prices for May in electronic trading for the New York Mercantile Exchange
(NYMEX) fell by $0.29 (0.29%), to $100.31 per barrel
During the previous session, the futures contract rose by $6.31 (6.7%) to $100.6 per barrel
US oil inventories rose by 7.8 million barrels in the week ending April 8, according to data from the American Petroleum Institute
Experts expected an average increase of 1.367 million barrels according to Trading Economics
In the meantime, the gasoline inventories fell by 5.1 million barrels and distillates by 5 million barrels
Inventories in reservoirs in Cushing and Oklahoma, where oil traded on the New York Stock Exchange is stored, rose by 375 thousand barrels
Market participants await the release of official data on the status of the United States’ oil reserves from the Department of Energy
Analysts at S&P Global Commodity Insights expect oil reserves to rise by 300 thousand barrels
as well as gasoline reserves by 800 thousand barrels and distillates – by 1.5 million barrels
Dow Jones rises half a percent
Dow Jones rose on Wednesday, along with Standard & Poor’s and Nasdaq futures
The stock market opened strongly higher on Tuesday, as the consumer price index raised hopes that inflation had peaked
but major indexes reversed downward as a senior Fed official pointed to sharp rate increases and other stocks were ahead
Dow Jones futures rose by 0.5% of fair value
S&P 500 futures rose by 0.5%, and the Nasdaq 100 index futures rose by 0.7%
The 10-year Treasury yield rose 2 basis points to 2 .75%
Tesla stock rose on Tuesday morning, again breaking above its 21- and 50-day lines, respectively, inside the handles
But Apple and Tesla stocks reduced their gains as the overall market faltered
Forecasts for FTSE opening lower
The FTSE 100 is expected to fall 20 points now
following the release of UK inflation figures showing that the Consumer Price Index (CPI) accelerated to a new 30-year high of 7% in March
meaning the family’s finances are under more pressure than expected
Core CPI rose from 6.2% in February, ahead of economists’ expectations of 6.7%
This resulted in the biggest fall in real wages since 2014, with wage data published yesterday revealing a rise of just 5.4%
The Office for National Statistics also revealed that core inflation, which excludes more volatile prices such as energy
food and alcohol prices, rose to 5.7% from 5.2% and also above expectations of 5.4%, which were also 30-year highs
Fuel price rise of 9.9% month-on-month in March was a significant contributing factor to the consumer price index’s main rate rise
the largest ever monthly rise
Fuel inflation is now 30.7% compared to last year, while food and drink inflation rose to 5.9% from 5.1%
now its highest rate since September 2011
There is a strong expectation that inflation will be the highest in thirty-odd years and is clearly often priced right now
the data coming through an undoubtedly quiet holiday seems to help, too, not a barrier
Yesterday’s UK unemployment data, which fell to 3.8%, matched the levels seen in 1975
and at the end of 2019 was likely the only silver lining in what is likely to be a difficult summer for UK consumers
such as the UK economy
In Asia, Japan’s Nikkei rose by 1.64% to 26,767, while Hong Kong’s Hang Seng gained 0.75% to 21,482