Home » The stock exchanges today, June 2nd. Prices cautious, oil at its highest for two years

The stock exchanges today, June 2nd. Prices cautious, oil at its highest for two years

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MILANO – 9:30 am. An uncertain day is announced for the equity markets, with the start not moving for the European markets and weak futures on Wall Street. Milan starts in the red, then turns up by 0.25% thanks to the good moment of oil. Interpump stands out on Piazza Affari, after the acquisition of White Drive Motors. London advances by 0.5%, Paris is unchanged as Frankfurt.

The rush of oil and fears of expensive raw materials

The protagonist of these hours is the Petroleum, which for the first time in two years closed trading (Monday evening) above $ 70 a barrel – after having also passed $ 71 – in the wake of the OPEC + decision to confirm the policy of gradually increasing supply. In fact, since April, the cartel led by Saudi Arabia and extended to Russia has set itself the goal of increasing production by 2.1 million barrels: a program confirmed yesterday until July. There will be a new summit at the beginning of that month, to set the steps from August onwards.

With the recovery underway, analysts are not afraid of an excess supply of oil, also in light of a thaw between the US and Iran that could lead Tehran to flood the market with its barrels, but on the other hand the agreement on nuclear power still seems to come. The Brent quality, the reference of crude oil for the European market, rises today by 0.34% to 70.50 dollars a barrel, while the WTI is traveling towards 68 dollars, up by 0.31% to 67.93 dollars a barrel . The rise in energy prices is rather what worries observers, because it is able to drive inflation upwards in general and because it is accompanied by a rush of raw materials – from aluminum to copper, passing through foodstuffs – which it is sending global supply chains haywire creating many headaches for companies: that grain of sand in the mechanism of recovery capable of derailing the whole machine of the economy.

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Stock markets and the Turkish lira

The Tokyo Stock Exchange, this morning, it closed up 0.46% at 28,946.14 points. Although Japan last week extended anti-Covid tightening measures until the end of the month, investors are looking with confidence to the signs of recovery and the acceleration of the vaccination plan fuels expectations of a reopening of economic activities. Car company stocks hit new highs buoyed by rising global demand. To weigh in general on the recovery outlook, as yesterday’s data on the American ISM showed, are the risks of interruption of supply chains due to the scarcity of raw materials and components and also the mismatch between supply and demand of work, with some companies struggling to find despite unemployment has increased with Covid. However, the day in Asia was mixed, with Shanghai and Hong Kong weak. Last night, despite the good performance of the energy sector driven by oil Wall Street closed trading poorly with the Dow Jones up 0.1%.

Investors are awaiting the US job report on Friday which may give some more indication of the state of the world‘s leading economy. An ‘appetizer’ arrives today with ADP data limited to the private sector, along with the Beige book of the Federal Reserve which could give some indication of the countermeasures to the Central Bank study on the risk of price increases. Backlash in April of retail sales in Germany: they fell by 5.5% monthly (increase of 4.4% annually), yielding more than expectations which were -2%.

On the currency front, yet another case should be noted Erdogan-Turkish lira: the president has again targeted the central bank and its independence, calling for cuts in the cost of money and even indicating the summer months as a time to start lowering rates. The effect: Ankara’s currency depreciated by about 3%, exceeding 8.8 against the dollar. Unchanged theeuro against the dollar at 1.222.

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It spread between BTP and German Bund it is stable just below 110 basis points. Oro down in the early morning trading. The yellow metal changes hands on the spot market at 1,898 dollars an ounce, down 0.37%.

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