Stock market: China and the United States create a positive

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After the rapid growth of index Mosberg today with the opening of the market we are seeing a natural correction. The General geopolitical background is stable, but the news about the bill, US to impose new sanctions against Russia caused a temporary panic. Consider the difference between the bill and the law itself. For Russia, the threat of the law. The misunderstanding of this led to hasty fixing the positions of market participants.
Oil prices today in Asia fell. It turned out that crude oil inventories in the U.S. unexpectedly rose last week. Futures on WTI fell by 0.14% to $62,37, and on the mark Brent – $69,27, losing 0.1 percent. Despite this, WTI continues to grow more than 35% for the year and Brent is 28%. Such an increase supported by aggressive production cutbacks by OPEC and allies under the leadership of Russia, and U.S. sanctions against Iran and Venezuela.
On Wednesday, the energy information Administration (EIA) has published its regular weekly report. Crude oil inventories increased by 7.24 million barrels for the week from 23 to 29 March. The EIA report also showed that gasoline inventories decreased by 1.78 million barrels, although the expected figure of 1.54 million barrels. Distillate stocks fell by 2 million barrels, compared to forecasts for a decline by 0.51 million barrels. On the other hand, the events in Sino-American trade front are positive, and potentially negative impact on the demand will not.
Have reported good results in Beijing. Now both sides are working to further talks to iron out remaining differences. The positive rhetoric in relation to commercial transactions can continue to support crude oil and even to raise it higher. In this regard, in the long term should be considered oil and gas company. LUKOIL may increase by +2,1%, “Surgutneftegaz” – on +1,4%, “Rosneft” – on +1,5%, “Tatneft” will add another 2.3 percent.
US shares rose in after-hours on Wednesday due to the sector basic materials, technology and consumer services. At the close of the NYSE industrial index Dow Jones increased 0.15%, the S&P 500 rose 0.21% and the NASDAQ Composite index is 0.60%.
Trade negotiations between the US and China are at the final stage. 90% of the transaction is discussed, but the last 10% is the hardest part, and it will require compromises from both sides. Cautiously optimistic remarks were made by China’s Vice Premier Liu he. He met with US trade representative Robert Leitheiser and Finance Minister Steven Mucina on Wednesday.
Raytheon (NYSE: RTN) has lost 4.5 percent, Northrop Grumman Corporation (NYSE: NOC) is 2.4%, and Lockheed Martin (NYSE: LMT) – 1,92%. Falling energy reserves has held back the growth on the broader market as oil prices fell after an unexpected increase in supplies in the United States.
The leap in technology shares spurred to risk, and before that there was an increase in shares of chip manufacturers. So, Advanced Micro Devices (NASDAQ: AMD) increased by 8.5%.
In Nomura discussed the prospect of increasing profits for AMD. Apple (NASDAQ: AAPL) closed up 0.7% higher, while Nomura expected that revenue from makes up for the slower sales of the iPhone before. The growth in the App Store decreased from 18% in December to 15% in March. This contributes to increased demand for its flagship smartphones of the company, especially in China, remains weak in the market.
GameStop (NYSE: GME) faced difficulties, falling by 4.7% earnings forecast for the full year did not meet the consensus estimates of wall street. Economic data failed to help stocks grow the private sector created fewer jobs than expected, while activity in the service sector has not matched the forecasts of economists. This indicates further signs of slowing economic growth.
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Gaidar Hasanov
Expert
“International financial center”