2023-10-16 21:51:13
US stocks rise with support from corporate profits… and the Dow Jones index jumps 314 points
On the first day of the week, and far from the tragic events in the besieged Gaza Strip, US stocks resumed their rise, awaiting a group of corporate earnings reports expected to be issued soon, regarding which there is great optimism, in general.
By the end of Monday’s trading, the main stock indices compensated for Friday’s loss, as the Dow Jones Industrial Average jumped 314 points, representing 0.93% of its value, and gave the world’s most famous index its best day since September.
The S&P 500 index rose by 1.06%, while gains in the Nasdaq index reached 1.20%, and all eleven S&P sub-indices for various sectors of the economy also rose.
About 11% of the companies that make up the S&P index are preparing to announce their results this week, led by Johnson & Johnson, Bank of America, Netflix, and Tesla.
In Europe, stocks began the week’s trading on a higher note today, Monday, supported by gains in the financial and mining sectors, while investors remained risk averse amid the potential for escalation of the conflict in the Middle East.
The European STOXX 600 index rose 0.2% at the end of today’s trading, as mining and retail stocks led the gains.
Israeli forces continued to bomb Gaza on Monday following diplomatic efforts failed to arrange a ceasefire to allow foreign citizens to leave and bring aid into the besieged Palestinian enclave.
Archyde.com said that the volatility index on the European Stoxx index recorded its highest level in eight weeks, earlier in the session.
The mining index rose 1.8% with the rise in prices of basic metals thanks to hopes for increased demand from China. The index’s gains were also supported by a 2.4% increase in SSAB shares following JP Morgan raised the rating of the Swedish steel company’s shares. .
Shares of financial companies increased 1%, with UBS shares rising 1.9% following the Canadian bank RBC raised the rating on the Swiss bank’s shares. The British Financial Times Index also rose 0.6%.
Concern regarding the strength of the euro zone’s labor market and fears of conflict in the Middle East have put investors on edge recently, although statements by Federal Reserve policymakers on monetary easing have allayed some concerns.
Oil futures fell by more than a dollar per barrel today, Monday, with increasing expectations that the United States will soon reach an agreement with Venezuela that will ease sanctions on its crude oil exports. Traders said that the conflict between Israel and the Palestinian resistance did not appear to threaten oil supplies in the short term.
Brent crude futures fell $1.24, or 1.4%, to $89.65 per barrel at settlement, while West Texas Intermediate crude futures fell $1.03, or 1.2%, to $86.66 per barrel.
The Venezuelan government and opposition said they would resume political negotiations this week following stopping for regarding a year, while sources said that the United States had reached a preliminary agreement to ease sanctions on the Venezuelan oil sector in exchange for holding competitive, monitored presidential elections in the Latin American country next year.
“The reported agreement will help… raise the country’s oil production from very low levels,” said William Jackson, senior emerging markets expert at Capital Economics.
He added: “But the sector requires massive investments to restore production to levels 10 years ago… This will not significantly affect the deficit in the global oil market in the near term.”
The two crude oil prices rose by regarding 6% on Friday, the largest daily rise in percentage terms since April, with investors taking into account the possibility of expanding the scope of the conflict in the Middle East.
During the week, Brent achieved record gains and rose 7.5%, its largest weekly rise since February, while West Texas Intermediate crude rose 5.9%.
John Kilduff, partner at Again Capital, said: “As of Monday, containing the impact of the conflict in the Middle East on crude oil supplies remains successful.”
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