After a day of losses because to demand fears related to China’s Covid-19 ban, oil began to rise on Thursday.
Transport networks have been hit by ongoing restrictions in the country, including in Shanghai’s economic hub, where tens of millions have been confined to their homes, but traders are balancing the demand shock with supply threats posed by the Ukraine war, with European Union countries considering bans on Russian crude.
To compensate for the shortfall, the US has announced it will release a large amount of its oil reserves.
Oil is still trading mixed following Tuesday’s sharp drop, but it is starting in Asia at the midpoint of yesterday’s trading range As US inventory cuts are proving to be beneficial. SPI Asset Management’s Stephen Innes stated.
Asia’s markets were mostly up in early trade, with Japan’s Nikkei 225 rising more than a percent, as traders remained bullish about the yen dropping for the third day in a row.
However, the Hang Seng Index in Hong Kong continued to fall, and Shanghai opened down as well, as reports from China about Covid-19 limits, interest rate reduction, and tech company restrictions remained a source of concern.
Seoul, Jakarta, Taipei, and Sydney all had marginally higher scores.
The announcement of a resumption to growth in eurozone industrial output in February boosted European markets yesterday. However, conflicting outcomes on Wall Street, as losses due to shrinking Netflix subscribers impacted on Asian trading, with tech companies falling in Hong Kong.
“Fed Chair Powell and ECB President Lagarde talk at an IMF Panel, while Governor Bailey speaks at a separate event later Thursday,” Innes added.
“These central bankers, particularly Powell, are unlikely to contradict market pricing, implying that the current global bond market rally is really a temporary pause on the way to higher yields.”
– Key figures around 0300 GMT –
Tokyo – Nikkei 225: UP 1.21 percent at 27,547.24
Shanghai – Composite: DOWN 0.93 percent at 3,121.67
Hong Kong – Hang Seng Index: DOWN 1.14 percent at 20,705.48
Euro/dollar: DOWN at $1.0828 from $1.0850
Dollar/yen: UP at 128.47 yen from 127.84 yen
Pound/dollar: DOWN at $1.3049 from $1.3065
Euro/pound: DOWN at 82.96 pence from 83.03 pence
West Texas Intermediate: UP 1.22 at $103.43 per barrel
Brent North Sea crude: UP 1.28 percent at $108.17 per barrel
New York – Dow: UP 0.7 percent at 35,160.79 (close)
London – FTSE 100: UP 0.4 percent at 7,629.22 (close)