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MARKET OVERVIEW. Stock markets appeared to be boosted by falling crude oil prices ahead of a meeting of oil producing nations amid speculation of an increase in production in Saudi Arabia.
In Europe, indices rose “after the previous day’s aborted bounce attempt, revived by the drop in oil prices,” observes Franklin Pichard, chief executive of Kiplink Finance.
Wall Street was preparing to follow the same trend, with gains of between 0.45% and 0.80% in key index futures ahead of the open.
London Square is closed for celebrations of the 70th Jubilee of Elizabeth II.
Stock market indices at 7:42 a.m
In the United States futures contracts dow Jones rose by 144.00 points (+0.44%) to 32,942.00 points. The futures contracts S&P500 collected 21.50 points (+0.52%) at 4,120.50 points. The futures contracts Nasdaq collected 83.00 points (+0.66%) at 12,634.00 points.
In London, the FTSE 100 closed. In Paris, the CAC 40 increased by 68.41 points (+1.07%) to 6,487.30 points. In Frankfurt, the DAX rose by 112.93 points (+0.79%) to 14,453.40 points.
In Asia the Nikkei Tokyo ended up 44.01 points (-0.16%) at 27,413.88 points. For its part, the hang seng Hong Kong closed up 212.81 points (-1.00%) at 21,082.13 points.
On the oil side, the price per barrel is increasing American WTI fell $3.07 (-2.66%) to $112.19. The barrel of Brent from the North Sea fell $2.97 (-2.55%) to $113.32.
Oil prices fell ahead of the meeting of OPEC+ countries on Thursday via video conference at 8:00 a.m. Quebec time (2:00 p.m. in Vienna, where the cartel is based) to adjust their oil output.
This meeting comes two days after the European Union announced an embargo to cut its imports of Russian crude oil by two-thirds.
According to the Wall Street Journal, OPEC members are exploring the possibility of excluding Russia from the expanded alliance’s production quota agreement.
Such a scenario would allow Saudi Arabia and the United Arab Emirates to use more of their capacity to supply the market.
An article from the UK business daily FinancialTimes also reports that Saudi Arabia would be ready to increase its production even more if Russia’s fell sharply after the latest sanctions, the experts point out, citing the reason for the doldrums in crude oil prices.
“None of this will alleviate the shortages and refining shortages that are driving up gasoline and diesel prices, but it would be rare good news for the global economy and the fight against climate change.” “Inflation,” fumes analyst Jeffrey Halley at Oanda.
Inflation and its effects on growth are causing problems for investors, but especially for central banks.
The US Federal Reserve (Fed) began raising interest rates in March to make borrowing more expensive and curb demand. Now there are growing fears that the economy will slow down or even slide into recession, even if the Fed currently rejects this scenario.
In the Eurozone, inflation hit a record 8.1% in May, putting additional pressure on the European Central Bank to raise interest rates faster than expected.
Her job is complicated as she has to make sure that European states don’t take levels that are too far apart, so as not to fragment the eurozone government bond market.
Premises of the German car manufacturer bmw (+ 1.17%) were searched in Germany and Austria on Wednesday as part of an investigation by South Korean authorities into problems in the exhaust gas cooling circuit that has been ongoing since 2018.
The juggernaut of e-commerce Amazon On Thursday, the company announced the closure of its Kindle digital bookstore in China next year, giving up that niche in China’s huge market. The action gained 1.08% in electronic trading before Wall Street opened.
The title Meta (Facebook) took 1.25% in e-commerce ahead of the opening of American markets the day after the announcement of the retirement of the group’s number two, Sheryl Sandberg.
The US dollar halted on Thursday, after rising the day before, ahead of the release of US macroeconomic data on May private payrolls and US jobs.
As of 6:40 a.m., the dollar was down 0.38% to $1.0691 to the euro.
Bitcoin is up 1.34% to $30,018.