Oil rebounds as the dollar rises, with Shanghai, Tokyo, Hong Kong and Sydney among the Asian stocks
In energy markets, benchmark US crude rose to $100.25 per barrel in electronic trading on the New York Mercantile Exchange
and the US currency resumed rising on Thursday, driven by both expectations of a tightening Federal Reserve policy faster
along with a rally in Asian stocks during Thursday’s trading.
Evest follows market developments in the following report.
topic
Brent price rises above $100 per barrel
Asian stocks surge after US inflation sparks interest rate hikes
Dollar rises driven by expectations of tightening Fed policy
Brent price rises above $100 per barrel
Oil prices rose moderately during Thursday’s morning session after a subdued rally a day earlier
despite growing fuel inventories in the United States and concern of a recession.
On Thursday, September futures for Brent crude on the London Futures Exchange in London by 8:11 Moscow time
cost $100.25 per barrel, $0.68 lower than the previous session’s closing price.
As a result of Wednesday’s trading, the prices of these futures rose by 8 cents to $99.57 per barrel.
The price of August WTI oil futures in electronic trading on the New York Mercantile Exchange (NYMEX)
was $96.82 per barrel by this morning, which is $0.27, 0.54 percent higher than the final value of the previous session.
By the close of the market on Wednesday, the cost of these futures had risen by 46 cents to $96.3 per barrel.
Last week, US oil inventories increased by 3.25 million barrels
data published according to the country’s Department of Energy weekly report showed.
Petrol commodity reserves increased by 5.82 million barrels and distillate products by 2.67 million barrels
while experts expected an increase of 1 million barrels and 1.7 million barrels.
In the analysts’ view, the decline in refinery activity and the release of nearly 7 million barrels of strategic reserves
caused a further increase in inventories by more than 108 million barrels, up to 485 million barrels.
In addition, it became known on Wednesday that inflation in the United States
(CPI Index) in June accelerated to 9.1 percent from 8.6 percent in May
updating the cap since November 1981, and analysts also predicted an average consumer price rise of 8.8 percent.
According to traders, accelerated inflation increased the likelihood
that the US Federal Reserve would raise interest rates at the July meeting by one percentage point instead of 75 basis points
and such a sharp tightening in monetary policy could accelerate the start of a recession in the world’s largest economy.
Asian stocks surge after US inflation sparks interest rate hikes
On Thursday, Asian stock markets rose after rising inflation in the United States supported expectations
for higher interest rates that investors worry will lead to a decline in economic growth.
Wall Street’s benchmark S&P 500 index fell by 0.4 percent on Wednesday after data showed US consumer index
inflation accelerated to 9.1 percent in June compared with a year earlier from 8.6 percent in May.
That was despite the Federal Reserve raising interest rates three times this year.
Investors are concerned that the Federal Reserve and other central banks’ aggressive measures to calm inflation
which has reached four-decade highs, could hinder global growth.
The Shanghai Composite Index rose by 0.4 percent to 3,295.83
and Hong Kong’s Hang Sang advanced 0.3 percent, up to 20855.29.
Tokyo’s benchmark Nikkei 225 rose by 0.8 percent, rising to 26,689.95
and Panasonic Holdings rose by 1.1 percent after the battery maker announced plans to build a multibillion-dollar
plant to supply Tesla and other automakers in Kansas.
Sydney’s S & P-ASX 200 rose by 0.4 percent to 6646.60 after official data showed employment rose more than expected in June
and Seoul’s Kospi rose by 0.1 percent to 2,330.74.
The Fed, central banks in Britain, South Korea and some other countries have raised interest rates to calm high rates
and the European Central Bank has similar plans.
Traders expect the Fed rate to rise again this month
possibly matching last month’s rise of 0.75 percentage points
the largest in 28 years and three times the usual margin.
Fed officials say a recession is possible but uncertain
and they point to a strong US labor market despite high borrowing costs.
On Wall Street, the S&P Index fell to 3801.78
the Dow Jones Industrial Index fell by 0.7 percent to 30772.79
and the Nasdaq Composite Index fell by 0.2 percent to 11247.58.
Dollar rises driven by expectations of tightening Fed policy
The dollar drew new highs over 24 years above 128 yen and returned towards parity
with the euro after briefly breaking through the level overnight.
The Australian dollar also rose after strong jobs data spurred speculation of a rate hike by the Reserve Bank.
The US dollar rose by 0.6 percent to 138.235 yen
after reaching 138.28 for the first time since September 1998.
The euro weakened against the greenback by 0.34 percent to $1.0024
after approaching $0.9998 on Wednesday for the first time since December 2002.
The Australian dollar rose by 0.21 percent to $067725
erasing an earlier loss after Thursday’s data showed the unemployment rate fell to a 48-year low.