Connect with us

Markets

Global Stocks Mixed as Yen and Won Drop, Oil Gains

Published

on

BRITAIN-EU-STOCKS-BREXIT-POLITICS
  • Global Stocks Mixed as Yen and Won Drop, Oil Gains

Global stocks were mixed, with a falling yen pushing shares higher in Japan while Korean shares slumped, as investors weighed geopolitical risks and the path for U.S. monetary policy.

Equities in Tokyo and Sydney climbed with traders in the Asia Pacific region taking their first chance to react to worse-than-forecast U.S. hiring data. The Kospi slipped the most in more than five weeks and the won led losses among major currencies as geopolitical concerns lingered in South Korea. The yen weakened against the dollar for a third straight day. Oil added to last week’s rally.

Financial markets are showing resilience in the face of Friday’s weaker employment figures for the world’s largest economy and a ratcheting up of geopolitical tensions, with demand for haven assets abating. While the jobs report was weaker than some had expected, it’s consistent with the U.S. economy growing at two percent this year, Federal Reserve Bank of St. Louis President James Bullard said in Melbourne Monday. Corporate results ramp up this week with earnings due from the likes of JPMorgan Chase & Co., Tesco Plc and Prada SpA.

While most investors moved past last week’s missile attack on Syria, anxiety remained in South Korea amid speculation Donald Trump could make a similarly aggressive move against North Korea. An American aircraft carrier bound for Australia has been diverted to North Asia. Meanwhile, the much-anticipated meeting between Chinese President Xi Jinping and Trump ended with no mention of concrete measures to defuse tensions with Pyongyang.

What investors will be watching this week:

  • Argentina, Brazil, Canada, Chile and South Korea are among countries setting interest rates this week.
  • U.S. banks will start reporting first-quarter earnings, led by Citigroup Inc., JPMorgan and Wells Fargo & Co.
  • Fed Chair Janet Yellen speaks Monday in Ann Arbor, Michigan. Fed Bank of Minneapolis President Neel Kashkari will participate in a Q&A at a meeting of the Minnesota Business Partnership on Tuesday.
  • NATO Secretary General Jens Stoltenberg will visit Washington and meet with Trump on Wednesday. European leaders remain anxious about the U.S. level of support after Trump’s complaints that some NATO nations weren’t paying their share.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade experience in the global financial markets.

Markets

OPEC Agrees to Increase Oil Supply by 500,000 Barrels Per Day Ahead of Surge in Demand

Published

on

Nigeria's economic Productivity

OPEC and allies finally agreed to ease their 7.7 million barrels per day production cut by 500,000 barrels per day starting from January 2021.

This will now bring the oil cartel’s total production cuts to 7.2 million barrels per day starting from next year.

Oil prices rose after the news as the market believed the approval of Pfizer COVID-19 in the United Kingdom will kick start a series of approvals and helped restore confidence, increase business activities and demand for the commodity across the globe.

After the outcome of the meeting was made public on Thursday, Brent Crude Oil against which Nigerian oil is priced gained 1.35 percent on Friday after gaining 1.4 percent on Thursday to $49.37 per barrel at 11.35 am Nigerian time on Friday.

The US West Texas Intermediate gained 1.29 percent to $46.23 barrel on Friday.

500,000 bpd from January is not the nightmare scenario that the market feared, but it is not what was really expected weeks ago,” said Rystad Energy senior oil markets analyst Paola Rodriguez Masiu. “Markets are now reacting positively and prices are recording a small increase as 500,000 of extra supply is not deadly for balances,” she added.

Investors King increased business sentiment in the energy sector to boost investment, increase activity in the sector and most important improve crude oil demand enough to accommodate the 500,000 barrels per day extra that would be hitting the global market starting from January.

Continue Reading

Markets

Communities in Delta State Shut OML30 Operates by Heritage Energy Operational Services Ltd

Published

on

Oil

The OML30 operated by Heritage Energy Operational Services Limited in Delta State has been shut down by the host communities for failing to meet its obligations to the 112 host communities.

The host communities, led by its Management Committee/President Generals, had accused the company of gross indifference and failure in its obligations to the host communities despite several meetings and calls to ensure a peaceful resolution.

The station with a production capacity of 80,000 barrels per day and eight flow stations operates within the Ughelli area of Delta State.

The host communities specifically accused HEOSL of failure to pay the GMOU fund for the last two years despite mediation by the Delta State Government on May 18, 2020.

Also, the host communities accused HEOSL of ‘total stoppage of scholarship award and payment to host communities since 2016’.

The Chairman, Dr Harrison Oboghor and Secretary, Mr Ibuje Joseph that led the OML30 host communities explained to journalists on Monday that the host communities had resolved not to backpedal until all their demands were met.

Continue Reading

Markets

Crude Oil Recovers from 4 Percent Decline as Joe Biden Wins

Published

on

Oil Prices Recover from 4 Percent Decline as Joe Biden Wins

Crude oil prices rose with other financial markets on Monday following a 4 percent decline on Friday.

This was after Joe Biden, the former Vice-President and now the President-elect won the race to the White House.

Global benchmark oil, Brent crude oil, gained $1.06 or 2.7 percent to $40.51 per barrel on Monday while the U.S West Texas Intermediate crude oil gained $1.07 or 2.9 percent to $38.21 per barrel.

On Friday, Brent crude oil declined by 4 percent as global uncertainty surged amid unclear US election and a series of negative comments from President Trump. However, on Saturday when it became clear that Joe Biden has won, global financial markets rebounded in anticipation of additional stimulus given Biden’s position on economic growth and recovery.

Trading this morning has a risk-on flavor, reflecting increasing confidence that Joe Biden will occupy the White House, but the Republican Party will retain control of the Senate,” Michael McCarthy, chief market strategist at CMC Markets in Sydney.

“The outcome is ideal from a market point of view. Neither party controls the Congress, so both trade wars and higher taxes are largely off the agenda.”

The president-elect and his team are now working on mitigating the risk of COVID-19, grow the world’s largest economy by protecting small businesses and the middle class that is the backbone of the American economy.

There will be some repercussions further down the road,” said OCBC’s economist Howie Lee, raising the possibility of lockdowns in the United States under Biden.

“Either you’re crimping energy demand or consumption behavior.”

Continue Reading

Trending