As oil and natural gas prices fall, alleviating inflationary fears, Wall Street and European indices operate at a completely higher rate. In Chile, S&P IPSA increased by 1.65%, leaving four sessions in the red.
Even if this is temporary, investors around the world are already responding to lower commodity prices. mild energy-related such as oil and natural gas.
Over the past week, the market has had to face not only the risks of an energy crisis, but also a possible reduction in federal reserve stimuli and higher-than-expected inflation.
On Wall Street, The Dow Jones is up 0.56% and approaching 35,000 points, hand in hand with the S&P 500 gaining 1.39% to stabilize at 4,424. Similarly, the Nasdaq advanced 1.63% to 14,737, while U.S. state treasuries rose to 1.56% and 2.12% at 10 and 30, respectively.
Meanwhile, Brent crude – the international benchmark – falls to $ 80 a barrel, while West Texas Intermediate (WTI) – the U.S. benchmark – falls to $ 76. The same scenario was experienced by natural gas, which had already fallen by more than 3% to 5,511 BTU before the market opened.
Similarly, investors’ concerns were mitigated by a raised the US debt limit in December. To, at the door a payroll report that will be key to the Fed’s decision to cut bond purchases will be released tomorrow.
“We expect Congress to add a debt increase to taxes and spending in the budget reconciliation package,” said Paul Christopher, head of global marketing strategy at the Wells Fargo Investment Institute.
“As deadlines approach without an agreement to raise the debt ceiling, increasing risk resilience could lead to greater market volatility.However, we believe that economic expansion will ultimately affect stock and bond prices by next year, ”he added.
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Chilean Stock Exchange
The local stock exchange in Santiago is recovering after the last four sessions. S&P IPSA rises 1.65% to 4,200 points.
Investors ’attention focused mainly on the congressional debate on a project that seeks to complete the fourth withdrawal of pension funds and living annuities. But after inflationary fears around the world dissipated somewhat, the reaction was more positive.
CCU (4.08%), Cencoshopp (3.83%) and BCI (3.67%) increased the most., while only safety (1.16%), Itaú (0.80%), Falabella (0.15%) and Sonda (0.13%) carried the falls.
Nevertheless, investor tension over the future of the Chilean economy remains at the door presidential election by the main local market index recorded a cumulative decline of 3.12% in the last week.
In Europe, the shares have been linked to the US and are intended to end the session with new gains boosted by weaker oil.
The pan-European Stoxx 600 rose 1.08% to 456.18 points during this time, along with Spain’s IBEX 35, leading an increase between indices of 2.09%.
It is followed by the Euro Stoxx 50 with an increase of 2.08%, the French CAC 40 with 1.64% and the London FTSE 100 together with the German DAX, which advances by 1.31% and 1.62%, respectively.
“The shifts we’ve seen in recent days have been a bit extreme: petrol prices, oil prices, certain raw materials and the threat of stagflation “, Equiti Capital macroeconomics chief Stuart Cole told Reuters.
“It is at a relatively low level and there is always the possibility of recovery,” he added, but stressed that stock markets are certainly not out of the woods.
In Asia, too, the closure was positive, but investors were still trying to decipher the future of the real estate crisis in China after the defaults of the giants Evergrande and Fantasía.
That way, while the Asian giant is still on vacation, in Hong Kong, Hang Seng was up 3.07%, hand in hand with Japan’s Nikkei 225, up 0.54%.
“Given a series of recent regulatory actions by the Chinese government, we do not believe that regulatory risks for Chinese companies are over. We believe, however, that after the fall in prices the safety margin between many Chinese ADRs more than compensates investors for the additional risks. “Morningstar chief U.S. market strategist Dave Sekera told Reuters.