Oil is getting better and negative trading in Europe .. and US markets are waiting for the Fed meeting
Oil is getting better and negative trading in Europe .. and US markets are waiting for the Fed meeting:
There is an upward bias in some Asian markets today, Tuesday,
but the markets of the People’s Republic of China are still under considerable pressure,
and oil prices are also rising, but with great restraint, as fears of an increase in delta variant infections dominate morale,
making oil highly conservative in its upward movements.
US and European index futures are traded in a nominal “minus”.
Markets will be waiting for affiliates’ news and statistics on Tuesday (there will be data on US durable goods orders in June),
and morale is likely to improve by the end of the day if the expected data are positive.
Evest follows what is happening in the commodity trading market, and relays them to you in the following lines.
Oil is rising and Brent approaching $75
As the trading session began on Tuesday, oil prices rose and the price of Brent oil approaching $75 per barrel.
The market is being supported by the prospect of limited supply and strong demand in the US,
offsetting concerns about the spread of the new strain of coronavirus ‘Delta’.
The cost of Brent crude futures for September on the London Stock Exchange ICE Futures on Tuesday is $74.81 per barrel,
$0.31 (0.42%) higher than the closing price of the previous session.
As a result of Monday’s trading, these futures rose $0.4 (0.54%) – to $74.50 per barrel.
The price of West Texas Intermediate crude futures for September in electronic trading on the New York Mercantile Exchange (NMX)
was $72.12 per barrel, which is $0.36 (0.29%) higher than the final value of the previous session.
As a result of prior trading, the value of these futures decreased by $0.16 (0.2%) – to $71.91 per barrel.
the Fed meeting approaches
The rise in oil prices is taking place against the backdrop of the weak US dollar as the Fed meeting approaches.
With the weakness of the US national currency, dollar-denominated assets, including oil futures,
became more attractive to currency holders, fueling interest in the assets, writes S&P Global Platts.
The increase in new coronavirus infections remains a critical issue in the oil market.
Despite new measures to the containment of the epidemic in some parts of the world,
demand for crude oil is now expected to continue to recover.
delta type of coronavirus has raised concerns
In the last few weeks, the most contagious delta type of coronavirus has raised concerns about demand in the oil market.
In July, the sharp rise in oil prices seen in May and June stopped.
During the month, price offers have been under considerable pressure at times.
Meanwhile, analysts say the rapid spread of the delta strain of coronavirus poses a major risk to the oil market,
with longer and stricter travel restrictions could be imposed.
According to media reports from other countries based on the White House statement,
the United States does not intend to lift entry restrictions.
This decision is due to the increase in the number of Covid-19 infections and the rapid spread of the new strain.
White House spokeswoman Jen Psaki told reporters on Monday that the increase in coronavirus infections “is likely to continue in the coming weeks,” prompting the United States to “maintain existing travel restrictions.”
The collective decline in European indices
European stock markets declined in the early stages of trading, in a session marked by the expectations
for the quarterly reports of major US technology companies and the first day of the Federal Reserve Board meeting
Tech stocks have affected Asian markets, with Chinese pressure increasing and holding on to the sector and the economy in general.
Milan opened with Ftse Mib down 0.18% and then worsened to -0.58%,
Paris lost half a percentage point, Frankfurt 0.80%, and Amsterdam 0.74%.
The federal meeting had a key role
In the United States, investors’ hopes are tied to the reports of the largest IT companies,
which will present their results for the second quarter of this week.
In addition, given the spread of the Covid-19 delta strain, the US Federal Reserve may use softer rhetoric as the economy may need longer-term support.
Stock indices rose by 0.03-0.2% on Monday, Stock indexes rose by 0.03-0.2% on Monday, the highest level ever before this week’s major events.
Investors are expecting quarterly reports from a handful of US companies, including tech giants Alphabet, Amazon.com, Apple, Facebook, and Microsoft.
The U.S. electric car manufacturer Tesla, which announced after the market closed, ended the second quarter of 2021 with record profits,
with both adjusted figures and revenue above analysts’ expectations.
Market participants are also focusing on the upcoming meeting of the U.S. Federal Reserve System (FRS),
the results of which will be announced on Wednesday.
On Thursday, the U.S. Department of Commerce will release preliminary GDP data for the second quarter.
Goldman Sachs experts predict a significant slowdown in the U.S. economic recovery in 2022, noting weak growth in activity in the service sector.
According to Goldman forecasts, the US economy will return to directional economic growth rates – 1.5-2% – in the second half of next year.
The bank also lowered its forecast for an increase in US GDP for the third and fourth quarters of this year by one percentage point – to 8.5% and 5%, respectively.
Mixed trading in Asia
On Tuesday in Asia, the dynamics of stock indices were mixed (Japan’s Nikkei 225 index rose by 0.5%,
China’s Shanghai Composite fell by 2.4%, Hong Kong’s Hang Seng lost 3.5%), and US stock futures (S&P 500 fell by 0.3%).
Oil is getting better and negative trading in Europe .. and US markets are waiting for the Fed meeting