2023-11-23 21:54:11
European stocks rise and employment falls as economic activity slows
On a day when US markets were disrupted due to the Thanksgiving holiday, European stocks ended trading on Thursday with a slight increase, as investors continued to investigate the next steps of central banks regarding interest rates, hoping that the current interest rate hike cycle had reached its end. .
The STOXX 600 index of European stocks ended today’s trading with an increase of 0.3%, as oil and gas stocks rose, achieving gains of 1.4%, despite the continued decline in oil prices following OPEC+ postponed its meeting, which the markets expected would witness more decisions to reduce production. Shares of travel and tourism companies led the losses, down 1%.
Relatedly, preliminary Eurozone PMI data for November showed employment falling for the first time in nearly three years. Business activity continued to decline, although the rate of contraction in production and new business slowed.
Yesterday, Wednesday, US stock indices continued their strong performance on the eve of the Thanksgiving holiday, coinciding with the decline in bond yields to their lowest levels in two months, indicating the continuation of the year-end momentum, which may have begun early this time.
Oil prices continued to decline on Thursday, the day following OPEC+’s sudden decision to postpone its ministerial meeting, indicating a new internal dispute in the bloc.
Major crude contracts fell due to the postponement of the upcoming OPEC+ meeting, an alliance of major producers led by Saudi Arabia and Russia, from November 26 to 30.
Prices fell by 1% on Thursday, the same percentage of decline witnessed on Wednesday, despite a decline of regarding 5% yesterday immediately following the announcement of the postponement of the meeting, before losses were reduced upon reaching the settlement date.
Reports said that the decision was taken following Angola and Nigeria rejected the cuts called for by other countries, with Saudi Arabia preparing to extend the production cut by one million barrels per day into the new year.
Riyadh and Moscow revealed huge cuts earlier this year in an attempt to boost prices, which were under pressure due to the faltering economy in the United States, Europe, and China in particular.
SBI Asset Management analyst Stephen Innes noted, “Oil prices fell following OPEC announced a delay in its meeting date, which indicates a growing disagreement between OPEC+ producers.”
He added, “With the rise in production from the United States and non-OPEC countries, it would not be surprising if producers wanted to pump more oil, not reduce production, for fear of losing even a small portion of their market share.”
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