The S&P 500’s worst week in two months…and oil is rising by a Russian decision
Despite ending Friday’s trading with a (slight) rise, the S&P 500 index did not improve its weekly performance except slightly, to record its worst week since December, while the Russian decision to reduce oil production, starting from next month, caused The price of black gold increased by more than 2%, due to concerns about supply shortages.
While the broader index of US stocks managed to escape from the red zone in the last minutes of the week’s trading, the Nasdaq index, which is more sensitive to interest rate changes, remained in it, ending Friday’s trading with a loss of nearly two-thirds of a percentage point, bringing its weekly losses to 2.41% of its value. While the Dow Jones Industrial Average ended the day’s trading up by 0.50%, it was not enough to erase the week’s losses.
In a related way, European stocks fell today, Friday, affected by a jump in bond yields, at a time when investors are concerned, with the possibility of a prolonged cycle of raising interest rates by major central banks, while sentiments were further affected after bleak expectations from Adidas.
The pan-European STOXX 600 closed down 1.0%, marking its first weekly decline in three weeks, after hitting its highest level in nearly a year the previous day.
Adidas shares led the declines in European stocks, as it fell by 10.9%, its sharpest drop in nearly three years, after the sportswear giant warned of sliding into a loss this year for the first time in three decades. Its rival, Puma, fell 4.6%.
On the last day of the week, oil prices rose by more than 2%, with weekly gains of more than 8%, after Russia announced plans to cut oil production next month, in response to the West imposing a ceiling on crude oil and fuel prices coming from the country.
Brent crude futures rose at the settlement by $1.89, or 2.2%, to $86.39 a barrel, and US West Texas crude futures rose $1.66, or 2.1%, to $79.72.
Brent achieved a weekly gain of 8.1%, while US West Texas crude rose 8.6%.
Russian Deputy Prime Minister Alexander Novak told Reuters that Russia plans to reduce its crude oil production in March by 500,000 barrels per day, equivalent to about 5% of production.
Western countries have imposed the restrictions in an attempt to limit Russia’s oil revenues, from which Moscow finances its operations in Ukraine.
Two delegates in OPEC + told Reuters that the group does not intend to take any action after Russia announced a reduction in oil production.
