Oil prices soar as stocks unfazed – Business – The Guardian Nigeria News – Nigeria and World News
Oil prices spiked higher on Monday as OPEC + stuck to its planned production increase, but US and European stocks seemed largely unfazed by the announcement and the latest problems from Chinese real estate giant Evergrande.
U.S. oil prices hit their highest level since November 2014, hitting $ 77.26, as the 23 countries of the OPEC + group began a video conference.
Meanwhile, the price of the main international contract, Brent oil, has risen back above $ 80 a barrel.
In the end, OPEC and its main allies – known as OPEC + – decided to stick to their planned increase next month in oil production by 400,000 barrels despite fears that the high prices do not dampen consumer demand.
Most European stock markets were slightly higher in the afternoon trading, while the Dow Jones was roughly flat at the Wall Street open, although the S&P 500 and the Nasdaq Composite all traded. two sagging.
“Global supply chain challenges continue to hamper global economic activity and drive inflation, while expectations remain high for global monetary policies on the path to tightening,” analysts said. Charles Schwab brokerage house.
While some analysts have warned that oil prices staying above $ 80 a barrel could start to hurt demand as global economies already grapple with transportation challenges, stocks have remained largely flat. after the OPEC + announcement.
Evergrande is worried
In Asia, stocks were mostly up, but Hong Kong sank in fears over struggling real estate giant China Evergrande, which suspended trading in its shares.
The Evergrande crisis, which is drowning in a sea of debt worth more than $ 300 billion, has rocked markets in recent weeks, fearing its failure will spill over into the wider Chinese economy and maybe further.
The company said in a statement that the halt to trading in its shares was called “pending the release by the company of an announcement containing inside information about a major transaction.”
The news came as reports said Hopson Development Holdings was planning to buy a 51% stake in its real estate services arm.
However, traders remain concerned that Evergrande will miss payments on the bond bonds, putting it in default.
Hong Kong stocks, already under pressure amid concerns over China’s crackdown on a range of sectors including tech companies and casinos, fell more than 2%.
Tokyo fell 1.1% – a sixth straight loss – while Taipei was also in negative territory.
– Key figures around 13:30 GMT –
London – FTSE 100: Up 0.2% to 7,044.17 points
Frankfurt – DAX: APARTMENT at 15,157.57
Paris – CAC 40: + 0.2% to 6,527.17
EURO STOXX 50: DROP 0.1% to 4,031.47
New York – Dow: EN up less than 0.1% to 34,337.93
Tokyo – Nikkei 225: DOWN 1.1% to 28,444.89 (close)
Hong Kong – Hang Seng Index: DOWN 2.2% to 24,036.37 (closing)
Shanghai – Composite: Closed for a public holiday
Euro / dollar: Up to $ 1.1628 from $ 1.1596 at 9:00 p.m. GMT on Friday
Pound / dollar: At $ 1.3605 vs. $ 1.3546
Euro / pound: DROP to 85.48 pence against 85.60 pence
Dollar / yen: up to 111.10 yen against 111.05 yen
North Sea crude brent: + 1.7% to $ 80.63 per barrel
West Texas Intermediate: Up 1.5% to $ 77.01