Asian share markets were stable and made satisfactory gains. The performance of the share market is also affected by the economic condition of other countries. Factors such as surging oil prices, reports on jobs and manufacturing also affect the performance of the share market. There are also concerns such as geopolitical tension, but overall, the Asian shares are stable and edging higher. The MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) made a gain of 0.3%. It is expected that the Bank of England will increase the rates once again. The management of the European Central Bank believes that inflation will go down with the passage of time.
The investors take into several factors such as rising interest rates by the US Federal Reserve. The benchmark US S&P 500 index made a gain of 2.4%. This rise was sufficient to bring the index in the green zone. The Nasdaq Composite index also advanced 3%. Apple, which is the world’s biggest company in terms of market capitalization, witnessed a whopping gain of 7%. The smart investors are concerned about factors such as inflation. The high interest rate also enhances the borrowing cost of the companies. Now, the markets are coming back to total normalcy which is clearly a good sign. The Hang Seng and Nikkei 225 also rose by about 1%. The Nikkei 225 was standing at 26,981.89. The Hang Seng stood at 23,814.70. The dollar index was stable after climbing to its highest figure in the last one and a half years.
Global oil touching record height
Oil prices were very high, almost touching a peak of seven-years. The geopolitical tensions have also contributed to this bouncing. There is a possibility that tight energy supply could enhance oil prices. Brent made a gain of $1.30 and touched the figure of $91.33 a barrel. The US crude also added $1.27. It was standing at $88.09. For the first time after 2014, the Brent crude futures, which is the international oil benchmark, crossed $90. It was an amazing recovery. The US oil benchmark, West Texas Intermediate crude futures, managed to settle at $87.35 per barrel, which is 2.04% higher. The tension between Russia and Ukraine could affect crude prices, according to financial analysts. The supply disruptions are now unlikely to appear.
The smart investors keep commodities in their portfolio because small fluctuations allow investors to make some money. Goldman Sachs had predicted that by the third quarter Brent could touch the figure of $100 per barrel. OPEC has geared to enhance its oil production and the crude inventories are also going up.