Oil price rises
Interest rate fears push prices into the red
04/12/2022, 11:26 p.m
At first it looks as if the US stock exchanges would close with a decent plus on Tuesday, but then interest rate fears regained the upper hand and prices slipped into the red. Oil prices, on the other hand, are rising sharply again after recent losses.
The US stock markets closed in the red on Tuesday after a roller coaster ride. A wave of sell-offs set in in late trading due to fears of soaring interest rates. The US Federal Reserve recently signaled that it wanted to raise interest rates aggressively in order to bring rising inflation under control. Of the Dow Jones Index the standard values closed 0.3 percent lower at 34,220 points. The tech-heavy one Nasdaq fell 0.3 percent to 13,371 points. The broad one S&P 500 lost 0.3 percent to 4397 points.
the US consumer prices rose 8.5 percent in March to their highest level since late 1981, but were broadly in line with expectations. In the run-up to the data, speculation had arisen of even higher levels and more drastic interest rate hikes by the US Federal Reserve. Money markets currently see a 93.5 percent chance that there will be a 50 basis point rate hike at next month’s Federal Reserve meeting.
The price of crude oil of the grade Brent from the North Sea rose 6.3 percent to $104.73 per barrel. Stockbrokers attributed this to the latest developments in China. After the strict corona lockdown in the economic and financial metropolis of Shanghai, some people were allowed to leave their homes for the first time in more than two weeks. The relief at the first easing of the strict restrictions also eased concerns about demand on the commodities market. Stock market traders still expect further fluctuations: “The oil market is still vulnerable to a major shock if Russian energy is sanctioned, and this risk remains on the table,” said Edward Moya, market analyst at brokerage house Oanda. Opec lowered its growth expectations for global oil demand in 2022 due to the spread of the virus in China, the Ukraine war and rising inflation. She also warned that she might not be able to make up for lost volumes of Russian oil.
Subway attack sends gun manufacturers prices up
Things went up for Lululemon Athletica. The yoga sportswear retailer wowed investors with the nationwide rollout of its used-item reuse program. Among other things, customers can exchange their used sports trousers, tops, shirts and jackets for a gift card. The shares gained more than two percent.
Gun makers’ stocks soared after a shooting in New York Smith & Wesson’s and Storm Ruger by up to 0.7 percent. According to CNN, eight people were shot dead and several injured in a Brooklyn subway station. Investors assumed that many gun owners now expected stricter controls and would therefore stock up on their arsenals.