Oil falls while Asian stocks rise

Oil falls while Asian stocks rise

Oil falls while Asian stocks rise with European indices falling as the US dollar rises


Oil prices continued their latest decline after suffering the worst week since April due to concern
that global demand was stalling as central banks continued to tighten,
while Asian stocks rose slightly,
and the US currency rose against a basket of other currencies with gold prices declining.



Oil prices fall slightly after rising the day before

Asian stocks rise and buyers concerned with markets wait for the US inflation test

European markets open unsurprisingly low










Oil prices fall slightly after rising the day before


By this morning, Brent crude futures for October fell by $0.22,
or 0.23 percent on the London Futures Exchange, to $96.43 per barrel,
and on Monday Brent crude rose by $1.73, up 1.8 percent to $96.65 a barrel.


WTI futures prices for September at this time in electronic
trading on the New York Mercantile Exchange
(NYMEX) fell by $0.23, or 0.25 percent to $90.53 per barrel. 


During the previous session, the futures contract rose by $1.75,
or 2 percent to $90.76 per barrel.


In the analysts’ view, the market at Tuesday’s main trading session is likely to focus
on the prospects of a US-Iran deal on the nuclear issue,
potentially providing additional oil barrels.


The previous day, Western media reported that EU diplomats had drafted
the final text of the document on the restoration of the nuclear deal with Iran
and believed that the parties must now make a final decision.


In addition, investors are concerned about the demand situation,
despite the fact that oil demand in China has begun to rise,
energy imports into the country remain at low levels
due to ongoing coronavirus-related restrictions.


China imports 8.79 million barrels of oil per day in July,
more than the June figure, which was the lowest in four years,
but 9.5 percent lower than July 2021, as shown on Monday.













Asian stocks rise and buyers concerned with markets wait for the US inflation test


Most Asian stocks recovered slightly from their recent losses on Tuesday,
while Japanese markets lagged the weak results from investment giant Softbank Group TYO: 9984.


The Nikkei 225 index fell by nearly 1 percent,
and SoftBank was among the worst performers after posting a record loss in the April-June quarter.


The investment firm’s stocks fell by 7.5 percent by 0505 GMT.


Hong Kong’s Hang Seng rose the most among its peers,
rising by 1 percent as stocks of heavy tech companies recovered from recent lows.


Regional markets ignored weak signals from Wall Street overnight,
which closed largely unchanged after a volatile session. 


The CPI is expected to settle at 8.7 percent for July,
down slightly from 9.1 percent the previous month.


While this decline will indicate that inflation likely peaked,
inflation will remain at its highest level in 40 years,
and the Federal Reserve expects to consider reading the consumer price index
in its plans to raise interest rates in September.


China’s Shanghai Shenzhen CSI 300 index rose by 0.3 percent,
ahead of Wednesday’s inflation reading,
and the Shanghai Composite Index rose by 0.3 percent.


Contrary to rising prices worldwide,
China is expected to rise only slightly with the consumer price index inflating to a four-year minimum,
but 9.5 percent lower than July 2021, as shown on Monday.

Producer price inflation could have fallen in July due to several COVID-19 lockdowns imposed earlier in the year.


Australia’s ASX 200 lagged behind its counterparts in the Asia-Pacific region,
rising by 0.1 percent, with the latest special survey showing consumer confidence
at its lowest level since the 2020 COVID-19 pandemic. 


Asian stocks made modest gains on Tuesday as buyers were hampered by persistent global cost pressures,
as investors shifted their focus this week to the United States,
inflation data and the prospects of the Fed adding more severe rate increases.


The unexpectedly strong United States excluded jobs data on Friday from July risk in the United States,
and the consumer price report is due on Wednesday, especially for the Fed’s policy outlook.













European markets open unsurprisingly low


European markets were poised for a lower open,
with Eurozone Stoxx 50 futures falling by 0.16 percent,
German DAX futures falling by 0.16 percent,
and FTSE futures falling by 0.12 percent.


The Dow Jones Industrial Index rose by 0.09 percent
while the S&P 500 declined and the Nasdaq Composite (.IXIC) fell by 0.1 percent.


The bonds also received a safe haven offer due to concern over Beijing’s military conflict against Taiwan
under days of Chinese military exercises across the island.


The yield on the benchmark 10-year Treasury note rose to 2.7608 percent
compared with the United States, which was close to 2.763 percent on Monday.
The two-year yield, which rose with traders’ expectations of higher interest rates on federal funds,
rose to 3.2056 percent compared with the United States, which is close to 3.216 percent.


The dollar index, which measures the greenback against a basket of other major
trading partners’ currencies, rose to 106.35.


The dollar’s rally was a setback for gold,
although it managed to bounce back from Friday’s lows and traded at $1785.67 per ounce.

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