The European markets seem to be in a very strong position. The pan-European Stoxx 600 index made a gain of 0.4% as most of the sectors managed to rise and land in positive territory. The astute investors wait very patiently and analyze the condition of the economic environment before taking any step. They are anxiously waiting for the latest US inflation report which is likely to be declared very soon. In many European countries, the industrial activities are rising. Recently, the European stock markets managed to register high gains, and they managed to reverse earlier losses. All the market participants and the economic experts are closely monitoring the economic data as well as the condition of the Euro.
The gain in the European markets was led by stocks of financial services. The financial services stocks were up by nearly 2%. The losses were reversed by the Euro as it became the single currency that managed to come into parity with the US dollar. It was seen trading at a gain of 0.2% standing at $1.006. Due to several geo-political factors, there is fluctuation in the supply of energy products. If individual stocks are considered, the top performer of the index was France's EDF. There was growth of more than 6% in the shares of the Paris-listed stocks. The French government is trying to bring the power giant under complete state control. The French government is likely to nationalize the company, and it already owns about 84% of the firm.
The stocks of oil and gas were mildly fluctuating as Russia has suspended gas supplies. The pipeline through which Russia supplies gas to Germany is closed for annual maintenance. However, there is a possibility that Russia could further disrupt the gas supply to Germany. The investors are gearing up to study the inflation data which is about to come out of the US. Moreover, the investors also monitor the condition of food and energy prices. The defensive sector along with the utilities managed to rise (.SX6P) by 1.3%. The job reports in the US appear to be normal, and this report has convinced investors that there is no need to worry about any economic downturn. The financial experts also take into account the latest consumer inflation.
Oil demand is likely to grow by the next year
As per the forecast of OPEC, the worldâ€™s demand for oil is likely to grow by next year. The consumption of oil is growing due to robust global economic growth. It is the expectation of OPEC that the worldâ€™s oil demand is likely to rise 2.7 million barrels per day by next year. It is assumed that by next year the geopolitical conditions will improve. The global economic growth and high demand of oil from countries like China are likely to stabilize the situation. OPEC further hopes that the Russia-Ukraine war will not escalate further and the global economic growth will not be affected. All the members of OPEC are trying to ramp up the production.
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