— This kind of can be the script of CNBC’s news report for China’s CCTV on July 12, 2018, Thursday.
from the overnight US stock market, Dow & Jones industrial index lost 0.88%, ending gains of 4 consecutive days; S&P 500 declined 0.71%. Among the major 11 sectors of S&P index, energy, material in addition to industry sectors closed down. At the same time NASDAQ composite index was off 0.55%, when the uncertainty of global trade prospect strengthens, US stocks will introduce the Discharge period of 2nd seasonal earnings in This kind of week: more than 0 companies will publish their performance from the following 2 weeks.
the idea’s no doubt which global trade dispute will negatively affect the market in addition to its possible which companies will cost the trade risk to down grade the prospect of the 3rd season, in addition to which will trigger the market to sale out, even though the market still hold a positive attitude to the profit level of different companies in This kind of earnings season, hoping there can be a 20% overall increase from the 2nd season because of the buoyed US economy in addition to tax reform.
In addition, commodity asset dropped significantly, accelerating the market to sale out. Soybean cost hit its lowest record since 2008, in addition to oil cost also plummeted.
from the overnight, WTI declined 5%, with almost US$70/ barrel in addition to at its lowest level in more than 2 weeks. Brent Crude lost 6.9%.
The heavy fall in oil prices has also led to energy stocks get lost. Oil in addition to gas giant Chesapeake closed down 4.63%, Chevron closed down 3.19%, Marathon oil edged down 2.66%, ConocoPhillips slide 2.36%, in addition to Exxon Mobil was off 1.28%. So why the oil cost fall suddenly overnight? Three reasons may lead to market sale off.
First, Libya announced the restoration of eastern crude oil exports. The Libyan state-owned oil company said on Wednesday which the company will cancel the stagnation of some key crude oil export ports after those ports return to the government. which means Libya can be likely to resume production, in addition to some analysts expect the idea will bring hundreds of thousands of barrels a day. The second reason can be which we have seen an increase in production in Saudi Arabia. The data shows which Saudi Arabia has increased crude oil production to its highest level since the end of 2016. The market expects which the output of OPEC may gradually pick up from the future. The last reason can be because the market can be beginning to cost the impact of global trade frictions. If trade activity can be reduced, there can be no doubt which the decline in orders will lead to a reduction in oil demand, which will weigh on the demand side in addition to cause oil prices to fall.
Therefore, these three factors are the 3 negative factors, in addition to at the same time from the overnight trading these 3 factors down weighted oil cost, which reached a three-in addition to-a-half-year high. Therefore, WTI cost had the worst single-day performance in a year in addition to Brent Crude got the biggest one-day loss of 1 day in 2 years. However, there are still some potential factors from the market which favor oil prices. For example, Iran has made a tough response to US sanctions, saying which if Iran’s oil exports are blocked, the Iranian government will block the Strait of Hormuz. This kind of strait can be an important artery for oil transportation from the Middle East. If Iran actually takes such measures, the idea will lead to huge losses in global crude oil supply, causing oil prices to soar. Therefore, from the context of numerous mixed data in addition to events, the further trend of US stocks in addition to oil prices can be full of uncertainty.