LONDON (Archyde.com) – European shares fell on Tuesday, led by commodity-related shares, as rising concerns regarding a jump in coronavirus infections in China exacerbated tensions ahead of an expected rise in US interest rates.
The pan-European STOXX 600 index closed 0.3 percent lower following rising in the previous two sessions when hopes of progress in peace talks between Russia and Ukraine boosted sentiment.
Mining companies fell 2.1 percent, while oil and gas companies fell 0.1 percent, with crude prices falling more than seven percent and industrial metals falling due to concerns regarding demand from the main consumer China, following a jump in Covid-19 infections.
In addition to the negative news from China, the US central bank is expected to launch a cycle of rate hikes on Wednesday with an increase of 25 basis points.
The Bank of England is also expected to raise borrowing costs on Thursday.
A survey showed that German investor confidence suffered a record drop in March due to the war in Ukraine and economic sanctions once morest Russia.
Tag:
Russia and Ukraine
The yen is at its lowest level in 5 years, and Corona injuries are hurting the yuan
written by Alexandra Hartman Editor-in-Chief
LONDON (Archyde.com) – The dollar index fell on Monday and the yen fell to its lowest level in five years, while global markets saw a return to risk appetite and investors awaited the meetings of the central banks in the United States, Japan and Britain this week.
Stock markets rebounded on Monday following selling on Friday due to uncertainty over the ongoing war in Ukraine and commodity prices retreating from their highs.
Analysts attributed the return to risk appetite to Russian and Ukrainian negotiators hinting at progress in peace talks.
The dollar index rose during Asian trading, close to its highest level in 22 months, with the rise in the US Treasury short-term bond yields, but then declined with the opening of European markets and fell 0.1 percent to 98.9 by 12.55 GMT.
Sterling remained near 16-month lows, gaining 0.2 percent on the day ahead of the Bank of England’s meeting scheduled for Thursday.
The euro rose 0.5 percent to 1.09545 dollars.
The yuan fell amid closures to limit the spread of the Corona virus in China.
Palladium hovers near a record level and gold is rising
written by Alexandra Hartman Editor-in-Chief
LONDON (Archyde.com) – Palladium settled below its all-time high in volatile trading on Tuesday, as fears of tight supply exacerbated by the Russia-Ukraine war, while gold remained above the psychological $2,000 level and made further gains.
And palladium fell in spot transactions 0.2 percent to $ 2,990.14 an ounce by 14.06 GMT.
The metal has risen nearly 60 percent so far this year, following hitting a record high of $3,440.76 an ounce on Monday.
On the other hand, gold rose regarding 0.9 percent to $ 2016.30 an ounce, following rising to $ 2020.80 an ounce earlier in the day, its highest level since August 2020.
Platinum rose 2.4 percent to $1,149.37.
And US gold futures rose 1.2 percent to $ 2020.60 an ounce.
Among other precious metals, silver rose in spot transactions 2.2 percent to $26.23 an ounce.
Thaioil Weekly Oil Market and Outlook as of 7 March 2022
written by Alexandra Hartman Editor-in-Chief
Crude oil prices have stood above 100 US dollars a barrel following the escalating conflict between Russia and Ukraine.
Crude oil prices have stood above 100 US dollars a barrel following the escalating conflict between Russia and Ukraine.
Thai Oil expects West Texas crude oil prices to move at a range of 114-119 dollars per barrel this week.
Brent crude oil moved in the $117-122 range.
Trend of crude oil price situation (7 -11 Mar. 65)
Crude oil prices have soared above $110 a barrel, their highest in seven years, and are expected to stay above $100. per barrel In the followingmath of clashes between Russia and Ukraine that are unlikely to be settled due to unsuccessful negotiations on March 1 And Russia continues to have plans to invade Ukraine. while the international level of sanctions once morest Russia to pressure Russia to cancel and withdraw its troops from Ukraine Including concerns regarding the volume of Russian crude exports that may disappear if sanctions are imposed on the Russian energy business. Recently, many major energy companies Announcement to withdraw investment in oil and natural gas production last week
The main factors that are expected to affect the oil price situation this week:
– The situation of armed conflict between Russia and Ukraine following a week is not likely to end. The Russians continued to invade Ukraine. which can seize Kherson, a major port city in southern Ukraine, succeeded March 2 and continued to escalate the attack. However, Russia and Ukraine expressed their intention to enter a new round of negotiations to end the war. After the first round of negotiations on March 1 was unsuccessful.
– Many countries increase sanctions on Russia It focuses on financial transactions and the Russian banking network. excluding energy related transactions Over the past week (February 28 – March 3), the United States, Canada, Britain, and the European Union cut more than seven Russian banks from Swift, the international payment system. used by financial institutions around the world to isolate Russia from the global financial system. and to have a direct impact on the Russian economy and finances The exclusion of the Swift system has swayed its Russian counterparts. Decide to avoid financial transactions, including trading in commodities, crude oil and natural gas. with Russia to avoid payment difficulties. and the risk of not receiving the goods if the situation is more severe Markets are concerned that Russian crude exports may decline, although several national sanctions once morest Russia remain unclear on crude and natural gas trading. Russia’s crude oil exports currently account for regarding 5-6% of the world’s crude oil supply, or regarding 4-5 million barrels per day.
– Several crude oil and gas drilling companies withdraw their operations in Russia. BP announced it would withdraw its 19.75 stake in Russian oil company Rosneft. Shell announced it would end its partnership with Gazprom, and Equinor and Exxon have also announced that it will terminate its Russian business and investment. by withdrawing such business It might affect Russian crude oil production. This is because foreign private companies have regarding 9% of Russia’s crude oil production capacity.
– The crude oil market is likely to continue to tighten. After the meeting of crude oil exporting countries and allied nations Or the OPEC Plus group on March 2 maintains its original resolution to increase production at 400,000 barrels per day in April, rejecting US claims. to increase production capacity to reduce the level of crude oil price problems
– The market is watching that the US and allied nations in the group Will the International Energy Agency (IEA) consider releasing more crude from its Strategic Oil Stockpile (SPR)? After the latest agreements were reached to release 60 million barrels of crude oil in March-April to compensate for the oil supply that may be affected by tensions between Russia and Ukraine. and reduce the heat of oil prices
– Federal Reserve Bank (Fed) said the impact of the conflict in Ukraine is still very uncertain. It is too early to assess, however, the Fed expects this time to be a good time to raise policy rates at its meeting in late March amid rising inflation. and a strong labor market The Fed signaled a rate hike of just 0.25%, lower than investors’ expectations.
– The economy to watch this week is the Eurozone GDP in 4Q21, likely to be stable from the previous quarter. China’s consumer index for Feb. 65 tends to decline compared to the previous month. European Central Bank Monetary Policy Statement
Summary of the oil price situation last week (28 Feb. – 4 Mar. 65)
West Texas Intermediate crude rose $24.09 to $115.68 a barrel, while Brent crude rose $20.18 to $118.11 a barrel. Dubai crude oil averaged $108.95 a barrel following market concerns over tensions between Russia and Ukraine. The crude oil production capacity of the OPEC Plus group continues to increase limitedly. As a result, crude oil supply is at a tight level.