A positive start in Europe and Japan.. And oil is stunning again

A positive start in Europe and Japan.. And oil is stunning again

A positive start in Europe and Japan.. And oil is stunning again

A positive start in Europe and Japan.. And oil is stunning again: Oil declined again despite last week’s gains,
with Chinese data showing weak prospects for economic recovery, potentially hurting demand. 

Evest follows everything that happens in the commodity trading market in the following lines. 

Oil declines on disappointing Chinese data

Oil prices declined this morning, Monday, as disappointing Chinese economic data put pressure on demand, according to market watchers. 

The price of the North Sea oil barrel was $74.69 in early trading.

That was 72 cents less than it was on Friday.

The US oil barrel West Texas Intermediate dropped 62 cents to $73.33.

In the world’s second-largest economy, the mood of industry purchasing managers has deteriorated unexpectedly.

The value of an index published by Caixin trade magazine fell by 1.0 points to 50.3 points, the lowest level since spring 2020.

China is one of the major importers of oil. The gloomy mood in the economy may indicate lower growth and thus weaker demand in China.

According to Reuters, oil prices have declined because of concerns about the Chinese economy.

A survey showed factory activity grew at the slowest pace in 17 months.

This is indicated by the high cost of raw materials, the repair of equipment, and the extreme weather conditions that made trade activities more difficult. 

Concern about China’s economic slowdown has also increased.

Concerns over increased oil production

Fears have also been exacerbated by increased oil production (production) from OPEC producers.

According to a Reuters survey, OPEC oil production rose in July to its highest level since April 2021.

This was accompanied by reducing production limits under the OSCE agreement with its allies and Saudi Arabia to cancel supply cuts.

The spread of the delta type of coronavirus played a part in all of this.

In parts of Asia, the number of infections is increasing, with concerns about restrictions on movement.

According to analysts, “China has led the economic recovery in Asia, and if this decline increases,
there will be growing concerns that the global outlook will deteriorate dramatically.

The prospects for crude oil demand are also precarious and are unlikely to improve until the global vaccination situation improves. “

In July, growth in China’s industrial activity fell sharply, with demand falling for the first time in more than a year, partly due to higher product prices.

Business research has shown the challenges facing the Global Manufacturing Center.

The weaker results of the private survey, which mainly covers export-oriented producers and small producers,
generally coincide with the results of an official survey published on Saturday, which showed that activity is growing at the slowest pace in 17 months.

Oil production from the Organization of Petroleum Exporting Countries (OPEC) rose in July to its highest level since April 2020,
as the organization eased restrictions under the OPEC + agreement, while Saudi Arabia, the largest oil exporter, refused to voluntarily cut off supplies.

Despite the continuing number of coronavirus cases worldwide, analysts say high levels of vaccination will limit the need for strict lockdowns, resulting in reduced demand during the peak epidemic last year.

Chief infectious disease expert Dr. Anthony Fauci said that the United States would not re-impose restrictions to limit the spread of COFID- 19,
but that “the situation will get worse,” as the Delta option contributes to an increase in the number of infections, mostly among the unvaccinated. 

A positive start in Europe

Exchanges in Europe are renewing their all-time highs with strong results, while pressure from China eases.

Major European exchanges gained strength on Monday morning,
with the region’s benchmark index renewing its all-time highs once again.

The Stoxx 600 Index – which includes the largest 600 indexes listed in the region – rose 0.81% to 465.48 points, the largest rise in the day in more than a week.

In London and Madrid, the FTSE 100 and IBEX 35 are leading gains this morning,
in a day when China no longer put pressure on their companies last week on the European continent.

Also, driving factors is earnings season and US President Joe Biden’s budget plan for $550 million infrastructure,
which could be approved this week in the US Senate.

A big rise for the Japanese Nikkei index

The main index of the Tokyo Stock Exchange, Nikkei, rose 1.82% on Monday on a day when searches for deals were selective
as a result of last weekend’s accumulated losses.

The Nikkei Index advanced 497.43 points to 27781.02, while the broader Topix Index, which includes stocks with the largest capitalization, those in the first section, rose 38.97 points, or 2.05%, and remained at 1940.05 points.

The search for undervalued assets was the trend today after the benchmark index fell by almost 2.5% last week and reached its worst level in six months in light of the new daily infection records of Covid- 19 in Japan.

On a day of good workload, the Nikkei Index was always moving positively, and at some point even saw increases accumulated by more than 2%.

All sectors except air transport have advanced today, where freight and mining have led the gains.

Thus, the shipping company Mitsui O.S.K. Lines gained an important 10.61% today, and the steel company Nippon Steel, the world’s third-largest, rose by 5.52%.

On the other hand, textile giant Fast Retailing, owner of the clothing chain Uniqlo, lost 0.17%, despite the rise of Toyota Motor,
the world’s largest car producer, by 2.29%, and the Japanese video game giant’s trading improved by 1.73%.

For their part, the country’s two major airlines, Japan Air and All Nippon Airways (ANA),
declined by 0.83% and 0.78% respectively.


A positive start in Europe and Japan.. And oil is stunning again

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