Oil prices drop to their lowest levels since June 2023, China’s Moody Downward

[ad_1]

The price of Crude Oil has reached a six-month low, declining for seven consecutive weeks. This downward trend is attributed to China’s poor economic data, the latest OPEC meeting, and higher than expected oil inventories in the US. China’s weak manufacturing and services PMI, along with Japan’s weaker economic data, have contributed to a lack of demand in the oil market. Additionally, Moody’s downgrade of China’s economic outlook from “stable” to “negative” has further impacted oil prices. The inability of OPEC to come to an agreement on production levels has also played a role in the decline. On top of this, the American Petroleum Institute reported a significant increase in oil inventories, adding to the oversupply in the market.

On the other hand, the US tech sector has seen positive signs, despite the USA100 falling by 0.57% in the previous session. The decline in the US Dollar Index and market participants anticipating a rate cut from the Fed in March 2024 have bolstered the outlook for the tech sector. While bond yields have risen, they remain lower than in previous months, which is positive for the stock market. Technical analysis shows that the USA100 is not within a short-term downward trend, and buyers tend to re-enter the market following declines. The performance of influential stocks, such as Tesla and NVIDIA, also has a significant impact on the index. Alphabet’s stocks, representing almost 6% of the overall index, are currently showing strength in the pre-market hours. Traders are keeping an eye on key price levels to determine potential buy signals in the near future.

[ad_2]

Related Post

Leave a Reply

Your email address will not be published. Required fields are marked *