Jakarta, CNBC Indonesia – Stock markets in the United States (US) are back under pressure at the open trading Tuesday (8/3/2022), in the midst of a surprise US policy that triggered a spike in world crude oil prices.
The Dow Jones Industrial Average was down 0.1% at 08:30 local time (21:30 WIB) and after 30 minutes it was minus 55,61 points (-0,17%) ke 32.761,77. The S&P 500 is down 10,32 points (-0,25%) ke 4.190,77 dan Nasdaq drop 55,22 points (-0,43%) ke 12.775,74.
The price of benchmark US crude oil, West Texas Intermediate (WTI) jumped 4% to US $ 124 per barrel after NBC reported that the US government was preparing a regulation banning imports of Russian oil today.
Meanwhile, the global benchmark Brent oil price jumped 3.4% to US$ 127.36/barrel. On Monday, the price of WTI had touched the psychological level of 130 while Brent had touched the figure of US $ 139.
As a result, the price of fuel in the US jumped to its highest level since 2008, with the national average in the US reaching US$ 4.17/gallon, according to AAA. This triggers concerns that world inflation will rise. Chevron and Exxon shares gained more than 1%.
“Russia-Ukraine conflict, spike in commodity prices, inflation concerns and the outlook for the US central bank [Federal Reserve/The Fed] fueled fears about a recession that is intensifying rapidly and the stock market is crashing hard,” said Chris Senyek, chief investment planner at Wolfe Research, in a research report cited by Reuters. CNBC International.
Rising prices for oil, fuel, natural gas, and important metals such as nickel and palladium have fueled concerns that world economic growth will slow down. In the midst of high inflation, investors are increasingly unsure of the existing situation.
The nickel price even touched US$ 100,000/ounce. Futures for palladium, a metal widely used in the electronics manufacturing sector, jumped 5% to $3.04/ounce, while platinum contracts jumped 3% to $1,149.7/ounce.
Yield (yieldThe 10-year tenor US government bonds (US Treasury), which is the market reference, shot up again, up 10 basis points (bp) to 1.85%. Ascension yield This indicates that prices are under pressure because the demand for risk-free assets, namely government bonds, is declining.
Investors continue to monitor developments in the Ukraine war. Russia previously warned that oil prices could soar to as high as US$ 300 per barrel if the Western Bloc really embargoes Russian oil.
CNBC INDONESIA RESEARCH TEAM
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