Oil continues to gain and Tesla stock continues to decline sharply US European and Asian stocks are mixed
Oil continues to gain and Tesla stock continues to decline sharply US European and Asian stocks are mixed: Many exchanges resumed operation after the long Christmas holidays,
making trading slightly larger in size than in previous days.
Evest follows market developments in the following report.
Topics:
Oil continues to gain in anticipation of the next OPEC meeting
A decline in Japan and South Korea and a rally in China
Dow Jones and Standard & Poor’s set new records and a sharp decline in Nasdaq
The US foreign trade deficit in goods increased to a record level
A collective decline in European stocks and the United Kingdom is rising alone
Oil continues to gain in anticipation of the next OPEC meeting
Oil prices extended their moderate gains on Thursday morning,
thanks to data on a larger-than-expected reduction in United States oil stocks last week.
The cost of Brent crude futures for February on the London Stock Exchange ICE Futures is $79.39 per barrel,
$0.16 (0.2%) higher than the closing price of the previous session.
As a result of Wednesday’s trading, these futures rose by $0.29 (0.4%) to $79.23 per barrel.
The price of West Texas Intermediate crude futures for February in electronic trading ,
on the New York Mercantile Exchange (NYMEX) is $76.74 per barrel by this time,
after rising by $0.18 (0.24%) from the final value of the previous session.
By the closing of the previous day’s trading, the value of these futures rose by $0.58 (0.8%) to $76.56 per barrel.
The price of oil has reached its maximum value since the end of November during the trading session the previous day.
Since the beginning of the year, the prices of both brands have risen by more than 50%,
which has not been the case for more than a decade, according to Trading Economics.
The United States commercial oil reserve fell by 3.58 million barrels last week,
while the experts interviewed by Bloomberg predicted a decline of 2.7 million barrels.
Gasoline inventories fell by 1.46 million barrels and distillates by 1.73 million barrels.
In addition, investors are increasingly likely to exclude new travel restrictions from governments amid new evidence ,
that the Omicron virus strain is less dangerous than previous options.
Market interest now goes to the OPEC + meeting on January 4. At this meeting,
representatives of oil-producing countries will discuss plans to increase production by 400 thousand barrels per day planned for February.
A decline in Japan and South Korea and a rally in China
Stock indices in Asia and the Pacific show mixed dynamics on Thursday morning.
The Japanese Nikkei 225 index fell by nearly 0.4%, the Australian S & P/ASX 200 index fell by 0.1%, the South Korean Kospi index fell by 0.448%,
and the Chinese CSI 300 index rose by 1.03% and Hong Kong’s Hang Seng index rose by 0.18%.
US Standard & Poor’s futures lost 0.07% from the previous day’s closing, indicating a potentially negative correction in the US stock market on Thursday.
Dow Jones and Standard & Poor’s set new records and a sharp decline in Nasdaq
US stock indexes Dow Jones and Standard & Poor’s rose slightly on Wednesday’s trading basis, and that was enough for them to reach new records.
The Nasdaq composite index ended the session in the red zone as trading activity declined during the holiday period.
By the close of the market on Wednesday, the Dow Jones Industrial Index had risen by 90.42 points (0.25%) and reached 36488.63 points.
Standard & Poor’s 500 rose by 6.71 points (0.14%) to 4793.06 points.
The Nasdaq Composite Index lost 15.51 points (0.1%) to 15766.22.
The attention of traders remains on the news about the new Omicron strain,
and it is currently believed that the spread of this strain will not require the introduction of strict quarantine procedures that can restrict both human movement and commercial activity.
According to experts: “The market depends on the fact that Omicron is a milder strain of the coronavirus, although it spreads more easily.”
The US foreign trade deficit in goods increased to a record level
Statistics released on Wednesday showed that the US foreign trade deficit in goods increased by 17.5% in November,
to a record high of $97.8 billion, and the deficit in October was $83.2 billion.
US merchandise exports fell by 2.1% to $154.7 billion last month, and imports rose 4.7% to $252.4 billion.
In the meantime, the index of pending home sales fell by 2.2% in November from the previous month after jumping 7.5% in October,
the National Association of Realtors (NAR) reported.
Experts predicted an average rise of 0.5%.
The index fell 2.7% from November last year. Thus, the decline accelerated compared to October 1.4%.
Tesla continues to decline
Tesla’s stock price fell by 0.2%. The company’s president, Elon Musk, sold another portion of Tesla’s stock on Tuesday – for $1 billion.
Taking into account previous sales, Musk sold 10% of his Tesla market share, he promised respondents to his Twitter poll.
A collective decline in European stocks and the United Kingdom is rising alone
European shares fell on Wednesday, except for the UK, which resumed operations after a long holiday.
The composite index of the largest companies in the Stoxx Europe 600 region fell by 0.11% to 487.98 points.
The British FTSE 100 index ended trading at 0.7% higher, hitting a 22-month high.
The French CAC 40 index fell by 0.3%, the German DAX – 0.7%, the Italian FTSE MIB – 0.4%, and the Spanish IBEX 35 – 0.2%.
The focus of the traders remains on the news about the new Covid-19 strain, Omicron.
The increase in infections in many European countries negatively affects the mood of traders.