July 2022 has begun and luckily the Asian markets are showing signs of complete stability due to good market conditions. The Shenzhen components managed to gain 0.4%. The markets in Australia and Japan were in good positions. The Topix index rose more than 1.1%, and the Nikkei 225 in Japan succeeded in recording early gains. It climbed 0.69%. The S & P/ASX 200 in Australia climbed by 1.36%. The MSCI’s broadest index of Asia-Pacific shares outside Japan managed to climb by 0.13%. The market strategists are continuously monitoring the situation and the investors are closely following them.
Half of the 2022 is already over, and the financial experts are confident that the second-half will be much better. The US dollar index was standing at 105.082. As per the latest news, the Japanese yen was standing at 135.04 per dollar. It had somehow managed to strengthen its level. The Australian dollar was also in a stable condition. As the factory activity grew in mainland China during June 2022, the markets also rose. The positive condition was revealed through the governmental data. The Shanghai Composite also managed to rise by 1.10%, and it climbed to 3,398.62. In South Korea, the industrial output grew. There are many factors that affect industrial output, and it is important to take them into consideration. It could be geo-political factors, shortage of demand in other countries, etc. There are many factors that affect the market sentiments, and the smart investors continuously monitor them.
Due to supply issues, the oil market registers gain
The oil managed to rise by about 3%. There was a supply outage in Libya. The situation such as any economic fluctuation can also dent the demand of the oil. However, the oil prices were higher. Brent crude futures made growth of 2.5% or $2.71. It was standing at $111.74 a barrel. The West Texas Intermediate crude (WTI) made a gain of 2.7% or $2.81. It was standing at $108.57 a barrel. The manufacturing activities in several countries have attained momentum. The travel industry is working normally, and it has resulted in the growth of the oil price.
The oil market received support due to low fuel and crude supplies. There was a planned strike by Norwegian oil and gas workers on July 5, 2022. Hence, there is a big possibility that the overall petroleum output by the nation could reduce the output by around 8%. It is around 320,000 barrels of oil. The planned strike is about their wage demand. In Libya, the production has been ranging between 365,000 and 409,000 barrels per day, which is a sharp decline when compared with normal circumstances. The US oil rig count also rose by one point, and it touched 595. It is the highest count since March 2020. The OPEC+ including Russia has agreed that they will continue to stick with the same output strategy. In mid July 2022, the US President Joe Biden is likely to make a trip to the Middle East, including Saudi Arabia. The soaring oil prices have become a matter of concern for many countries including the USA.