Brent Delta Topside oil platform in the UK’s Port of Seaton on May 5, 2017. Oil expected to surge on Monday Cuts in Russian natural gas supply to Europe could encourage a switch to crude oil, though concerns over weakening demand to fuel limited profits due to an expected increase in US interest rates.
Ian Forsyth| Getty Images News | Getty Images
This report comes from today’s TBEN Daily Open, our new newsletter for international markets. TBEN Daily Open brings investors up to speed with everything they need to know, wherever they are. Do you like what you see? You can subscribe here.
The US economy is back in familiar territory. But investors want a fresh start.
What you need to know today
- Adidas shares fell 11.64% after the company warned it could lose about 1.2 billion euros ($1.3 billion) in revenue if it fails to clean up its Yeezy shares. The German sportswear company ended a partnership with Ye (formerly known as Kanye West), the face of Yeezy, after he made anti-Semitic remarks.
- PRO With its profits and extensive restructuring plan, Disney has made headlines lately. But is it wise to enter the Magic Kingdom? Two investors argue for and against buying the shares.
it comes down to
A sell-off in US markets, rising oil prices and escalating tensions between the US and China – it feels like we are back in the worst part of 2022.
US stocks had a terrible week. The Nasdaq fell 0.61%. on Friday, giving it a weekly loss of 2.41%. The Dow gained 0.5% and the S&P rose 0.2%, but they still ended the week lower, with the S&P posting its worst weekly performance in nearly two months.
Higher energy prices are also back. The Brent contract for April, which covers oil from Europe’s North Sea, reached $86.39 a barrel, after rising more than 8% for the week. US West Texas Intermediate crude oil futures rose to $79.72 a barrel, up 8.63% for the week – the best since October. Those prices rose about 2% each on Friday after Russia said it would cut oil production next month in retaliation for Western sanctions.
Relations between the United States and China are deteriorating. After the US shot down a suspected spy balloon last week, the Commerce Department imposed sanctions on six Chinese aerospace companies alleged to support China’s espionage program. On Sunday, the US military shot down a fourth unidentified object — after a second object shot down on Friday and a third over the Yukon on Saturday. While the provenance of the objects is still unclear, it is increasingly likely that more sanctions will be forthcoming.
Amidst all that, investors are focusing with renewed intensity on the upcoming reading of the US consumer price index for January. The numbers will indicate whether we will be forced to relive the dark days of 2022, or whether there is hope in at least one part of the economy: American consumers.
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