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Markets’ news, January 2022

As CNBC has reported, changes in worlds’ markets show that oil prices have increased, the stocks have decreased in price in Asia and Wall street and fluctuations in the cryptocurrency market. Also the possible war between Russia and Ukraine has frightened the markets all around the world. Especially in European markets. The news is explained more below.

 

Oil price increased

On Monday oil prices in Asian market rose up. US crude oil rose at 0.79 percent and got to 85.81 dollars per barrel. World’s Brent index rose 0.85 percent and reached 88.64 dollars. American oil and Brent oil rose last week for Fifth consecutive week. American oil and Brent oil rose 2 percent this week. The prices rose more than 10 percent this week due to the fear of supply.

 

Forex and cryptocurrency market

The U.S. dollar rose 0.08 percent in comparison with its peers and reached 95.718. Japan’s Yen with 113.88 in each dollar experienced a rise which is higher than last week. The Australian dollar didn’t change much and reached 0.7179 dollars. After China’s central bank reached the Yuan to its highest level since 2018, the China’s Yuan rose 0.96 percent and placed at 6.3238 per dollar.

 

Asia’s stock market become red

On Monday most of Asia and Oceania markets experienced a decrease while the investors are waiting for the United States’ Federal reserve money policy meeting this week. Japan’s NIKKEI 225 Index after its previous failures decreased at 0.11 percent while TOPIX index decreased 0.18 percent. In South Korea the KOSPI index decreased 1.53 percent while Hong Kong index dropped 0.92 percent.  China’s stock regained the previous failures as Shanghai Composite rose 0.2 percent and Shenzhen index rose 0.56 percent. In Australia, EXS0 dropped 0.44%. energy index, goods and money decreased in term 0.71, 1.42, 0.48. But Australia Commonwealth Bank rose 0.17 percent. India’s stock also decreased for example NIFTY 50 decreased for 0.9 percent and Sensex index decreased for o.53%.

In Wall Street in the United States, NASDAQ gained a record 7.6% decrease in a week and it was the worst decrease since October 2020 and also it was 14 percent lower than its own record in November. The Federal Open Market Committee is scheduled to meet on Tuesday and Wednesday to decide on the next steps in US monetary policy. The inflation rise is one of the concerns for the central Bank of America and investors follow federal reserve concerns. Jeremy Paul is going to give a report to the media on Wednesday. The analysts wrote before the federal reserve statement this week, that they expect to see signs of rising interest rates from March, markets are trading cautiously. They said they are skeptical that the Federal Reserve would end the slight decline this week. They doubt that the Federal Reserve will tighten its policies by raising the rate by 50 points. Analysts added that the Federal Reserve may not be extremist based on concerns, and markets may stabilize.

 

Canada’s stock market

Canada’s main stock index, the S&P/TSX, dropped 0.2% to close at 20,571 on Monday, Losses increase for the fifth consecutive session to a minimum since December 20, as investors are cautious ahead of the Federal Reserve’s monetary policy meeting later this week, where policymakers are set to keep interest rates unchanged but signal their first interest rate hike in March. Also, a negative risk sentiment fueled a rout in heavyweight oil stocks, with energy stocks dropping more than 1.5%. In Canada, hundreds of truck drivers began a week-long protest against a federal vaccination order that barred thousands of truckers from crossing the US-Canada border.

 

Markets have fallen due to fear of war

European markets fell 3.8 percent to their lowest level since October, their biggest fall during the last 18 months, after NATO said it was strengthening its eastern borders with ground, naval and air forces because of a possible Russian invasion of Ukraine. The volatility escalated as investors worried that the US Federal Reserve would raise interest rates several times this year, since March, after US inflation hit a 40-year high in December at 7%.

Also in Russia There were heavy sales in the Moscow stock market, with the MOEX index of Russian companies falling by almost 6%, reaching its lowest level since December 2020, and its loss in 2022 to almost 15%. The ruble hit a one-year low, falling 2.5 percent to more than 79 rubles against the US dollar. The Bank of Russia announced that it will stop buying foreign currency in an attempt to reduce the pressure on the ruble, which has fallen amid tensions over Ukraine.

 

 

 

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