Stability of the oil market and Wall Street and forthcoming decisions from the United States
Stability of the oil market and Wall Street and forthcoming decisions from the United States :News about the United States continues to affect markets,
with Biden announcing his continued confidence in Jerome Powell, to lead the Federal Reserve for a second term,
while the US president prepares to upend the oil market by announcing the sale of the country’s Strategic Reserve from crude.
Evest follows all this in the following report.
Topics:
Biden nominates Powell as Fed chair for a second term
A rise in sales of existing homes in the United States
Oil is unstable and the United States may announce the sale of the strategic reserve today
Biden nominates Powell as Fed chair for a second term
Traders’ attention focused on the news that US President Joe Biden has nominated current FRS President Jerome Powell for a second term in office.
The White House announced that on Monday.
In the meantime, Lael Brainard a member of the Federal Reserve System Board of Governors, was nominated as its deputy.
“I am fully confident that President Powell and Dr. Brainard will provide support to the country through strong leadership,
having been” tested “over the past 20 months,” Biden said in a statement.
Powell’s four-year term as Chairman of the Federal Reserve Board expires in February 2022.
US indices are closing stable And a collective rally of Morgan Stanley, JPMorgan Chase and Goldman Sachs
Major US stock market indices closed steady on Monday after initial gains.
Major US bank stocks and US Treasury yields rose against the backdrop of news coming from the Federal Reserve.
At the close of trading, the Dow Jones Industrial Index rose by 0.05% to 35619.25 points.
Standard & Poor’s 500 Index fell by 0.32% to 4682.94 points.
While the Nasdaq composite index fell by 1.26% to 15854.76 points.
Morgan Stanley’s stock rose by 2.5%, while JPMorgan Chase & Co. Rose by 2.1%,
Wells Fargo & Co. by 3.1%, Goldman Sachs Group Inc. by 2.3%.
The index of the US cloud service provider Vonage Holdings Corp rose by 27%.
Swedish telecom equipment maker Ericsson AB bought the company for $6.2 billion.
The Activision Blizzard stock is down 0.3% on the back of reports,
that company president Bobby Kotick plans to consider resigning if he cannot restore the company’s reputation.
Tesla’s stock price rose by 1.7% after CEO Elon Musk said Tesla might start selling the S Plaid electric car in China by spring 2022.
And the US exchanges are supposed to close their doors for Thanksgiving weekend, next Thursday.
A rise in sales of existing homes in the United States
Growth in US economic activity accelerated in October after a weak rebound in previous months, according to the Federal Reserve Bank (FRB) index in Chicago.
The Federal Reserve National Activity Index in Chicago rose to 0.76 points in October from 0.18 points the previous month,
while analysts surveyed by FactSet forecast the figure at 0.17 points.
The positive value of the index indicates an increase above the historical trend and a negative value below.
On the other hand, sales of existing homes in the United States rose by 0.8% in October to 6.34 million on an annual basis,
according to a report by the National Association of Real Estate Intermediaries (NAR).
It’s the highest figure since January of this year. In September, the resale was 6.29 million.
According to surveys by Trading Economics and Watch, experts predicted an average contraction of 1.4% last month to 6.2 million homes.
NAR reported that home resale growth was observed last month in two of the four major areas of the United States.
Oil is unstable and the United States may announce the sale of the strategic reserve today
The Wall Street Journal reported that benchmark oil prices are falling in anticipation ,
of a possible announcement that the United States would start selling fuel from strategic reserves.
This could happen early Tuesday, according to Oanda analysts.
For his part, White House spokesman Jeanne Basaki said that the U.S. administration would urge OPEC to increase production,
regardless of whether it used strategic oil reserves.
“Anyway, we will seek through OPEC to ensure that oil supplies meet demand,” he told reporters.
Basaki noted that the United States had been conducting such negotiations with major oil exporters for a long time.
He did not comment on previous media reports on United States President Joe Biden’s plans to use part of the strategic reserve to reduce oil prices.
The Secretary-General of the International Union for Energy, Joseph McMonigle, said on Monday that the OPEC + countries would adhere to their current plans to increase oil production,
but that those plans could change in the event of unexpected factors such as the release of strategic reserves or new quarantine due to the pandemic.
Futures contract prices
Brent crude futures for January on the London Futures Exchange fell by $0.36 (0.45%), to $79.34 per barrel.
On Monday, its price rose by $0.81 (1%) to $79.7 per barrel at the closure.
The price of West Texas Intermediate crude futures in January in electronic trading on the New York Mercantile Exchange (NYMEX),
fell in the morning by $0.5 (0.65%) to $76.25 per barrel.
Its price rose by $0.81 (1.1%) as a result of the previous session, ending today at about $76.75 per barrel.
Yesterday, Monday, Bloomberg announced Biden’s plans, citing sources.
The report indicated that the official announcement could be made, as soon as possible, as early as Tuesday,
while India, Japan and South Korea were expected to take similar measures with the United States.
The agency described it as an “unprecedented effort by the major consuming countries to reduce oil prices ,
after the OPEC + countries did not respond to US calls to increase production significantly.”