By : Franyi Sarmiento, Ph.D., Inspenet, June 7, 2022
European stocks rose on Monday helped by miners and luxury stocks as China eased more Covid-19 restrictions, while investors kept an eye on US inflation data and details of the meeting of the European Central Bank this week.
The Stoxx 600 Index was up 0.9%, after ending last week down 0.9% on concerns over aggressive monetary tightening by major central banks.
Miners were up 1.2%, while luxury stocks gave the Stoxx 600 the biggest lift. Both sectors receive significant demand from China, rising after authorities eased restrictions in Beijing and Shanghai over the weekend.
London’s FTSE 100, heavily weighted by commodities, was up 1.1% after a four-day weekend for Elizabeth II’s Platinum Jubilee festivities. The British Prime Minister, Boris Johnson, will face a motion of no confidence by the deputies of the Conservative Party in Government on Monday, as announced by the president of the 1922 Committee, Graham Brady, to the deputies.
Wall Street opened higher on Monday, extending gains after Friday’s labor market report suggested continued strength in job creation without further acceleration in wage growth.
Oil prices hit $120 a barrel on Monday after Saudi Arabia raised crude prices for July and amid doubts that a higher OPEC+ monthly production target would help ease the supply crunch.
Brent crude gained 0.04% to $119.77 a barrel, after hitting an intraday high of $121.95.
West Texas Intermediate (WTI) crude futures were up 0.04% at $118.92 a barrel, after hitting a three-month high of $120.99.
Saudi Arabia raised the July official selling price (OSP) for its light crude oil by $2.10 to a premium of $6.50, the highest level since May, when prices reached all-time highs due to concerns about disrupted supplies from Russia.
The price increase followed a decision last week by the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, to boost July and August production by 648,000 barrels a day, or 50% more than previously forecast. .
However, the target was extended to all OPEC+ members, many of which have little room to ramp up production and including Russia, which is facing Western sanctions.
“With only a handful of OPEC+ participants with spare capacity, we expect the organization’s production increase to be around 160,000 barrels per day (bpd) in July and 170,000 bpd in August,” JP Morgan analysts said.
Source : https://www.valoraanalitik.com/2022/06/06/premercado-bolsas-mundiales-6-junio-petroleo/
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