Sturdy Stock Market and Stable Oil Market Maintain Sentiments of Investors

The Asian shares were seen completely stable due to policy easing in China as well as record performance of Wall Street. There were some doubts about the figures of the global growth, but the ongoing picture helped to calm the investors. In the United States of America, investors and businesspersons are eyeing inflation data as it helps them to take key decisions. Post pandemic recovery, the economic data of most countries, including the USA and China, are showing positive figures. The figures of economic growth, retail sales, industrial output and trade have improved considerably in many Asian countries, which is encouraging investors. Despite small fluctuations, experts admit that annual growth in China is expected to be above 8%.

Happiness and excitement was clearly visible on the faces of investors who are optimistic after watching the economy in a healthy state. In Asia, a growth of 0.9% was seen in MSCI's broadest index of Asia-Pacific shares. The shares of Chinese blue chip companies rose by 1.7% and South Korean stocks also managed to add growth of 0.9%.

The S&P 500 futures and Nasdaq futures were stable. The growth figures are remarkable according to the senior analysts. The condition of most currencies, including the Euro, was firm. It was standing at $1.1871. The European Central Bank is planning to change its policies regarding inflation. As per the latest strategy of the ECB, inflation higher than its 2% goal will be tolerated. This will be done when rates are very down, hitting the rock bottom. Such actions often take markets and investors with complete surprise. A risk-off mood was seen in investors that helped the precious metal “gold.” It was trading at $1,805 an ounce. In the month of June, it was trading at $1,749.

The decline in US inventories triggers a rise in oil prices

As US oil inventories began to decline, the prices registered a growth of almost 2%. The US crude was standing at $74.56. Apart from the condition of the US oil inventory, another major factor contributing to the growth of oil prices was strong demand from Asia. The demand for oil in China and India has gone up. The Brent crude oil futures gained 1.93%, about $1.43 and were standing at $75.55. Similarly, the US West Texas Intermediate futures gained 2.2%, about $1.62 and were standing at $74.56. According to senior analysts and market experts, the low probability of Iranian oil returning to the market and a historical drop in US oil inventories has changed the entire situation. Certainly, the market has attained stability and investors are optimistic about the future.

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