Oil prices have fallen to an April low, China’s industrial profits are falling: what you need to know in the morning

Main news of foreign markets this morning

Photo: pixabay.com 1 On Wednesday, American indices traded in different directions

The S&P 500 lost 0.4%, the Dow Jones index — 0.7%, and the high-tech Nasdaq gained about 0.5%.

Investors’ fears about the deterioration of the situation in the US banking sector overshadowed the general optimism in the market against the background of strong financial results of large American technology companies.

Meanwhile, the Nasdaq was the only major US stock index to end Wednesday with growth: the main driver was the rise of Microsoft shares on that day by more than 7%. Shares of the American software developer hit an all-time high in more than an hour after quarterly financial results beat Wall Street expectations.

The markets of the Asia-Pacific region demonstrate mixed dynamics

The broad index of Asian stocks (excluding Japan) MSCI AC Asia ex Japan Index fell 0.1% today, Japan’s Nikkei lost 0.2%, South Korea’s Kospi fell 0.1%, Singapore’s STI fell 0.5%, and China’s Shanghai Composite and Hong Kong’s Hang Seng rose by 0.2% and 0.1%, respectively.

All because of fears about a possible slowdown in the growth of the US economy against the background of growing problems in the banking sector.

The fall in profits of the industrial sector in China continues

According to the National Bureau of Statistics of China, in the first three months of 2023, the profit of Chinese companies decreased by 21.4% compared to last year, as the industrial sector is still experiencing the consequences of the COVID-19 pandemic.

Data on the decline in industrial production in China in the first quarter of 2023 followed a number of indicators indicating a general uneven recovery of the Chinese economy at the beginning of this year, notes Reuters.

Meanwhile, in the first three months of 2023, China’s GDP grew by 4.5% in annual terms, surpassing analysts’ forecasts.

Oil prices fell to an April low due to concerns about future demand

Brent futures fell 3.8% to $77.69 a barrel on Wednesday, while WTI contracts fell 3.6% to $74.30.

The price of oil decreased to March values ​​against the background of growing fears about the imminent onset of a recession in the USA, which is likely to affect the demand for energy resources.

Meanwhile, experts believe that OPEC+ may soon announce a new reduction in oil production if the prospects for future demand look weak.

Source: Ministry of Finance

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