Yahoo Finance Markets mixed as oil hits $90 a barrel
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European stocks were mixed on Monday as investors continued to monitor developments between Russia and Ukraine and oil hit its highest price in seven years.
US stock markets also opened mixed — the S&P 500 (^GSPC) was up 0.5% in early trading and the Nasdaq composite (^IXIC) rose 1.7%. The Dow Jones (^DJI) was mostly flat, having lost 0.08%.
At the close, the FTSE 100 (^FTSE) gained a modest 0.04%, while the CAC (^FCHI) dropped 0.47% in Paris and the German DAX (^GDAXI) was 0.92% higher.
Energy giants BP (BP.L) and Shell (RDSB.L) continue to benefit from Brent crude oil (BZ=F) at levels above $90 a barrel — the highest in seven years due to supply constraints and geopolitical tensions.
JP Morgan (JPM) warned that Brent could rise to $125 per barrel as inflationary pressures in the global economy continue.
“The development into 2022 has been strictly bullish with declining inventories so far this year versus a normal seasonal trend of rising inventories,” said Bjarne Schieldrop, chief commodities analyst at SEB AB.
“As long as the inventory declines continue like this, the bull-train will carry on.”
Vodafone (VOD.L) was the top FTSE 100 gainer, up 2.7% after the disclosure of stake building by activist investor Cevian Capital.
Europe’s largest activist fund is keen for Vodafone to be more aggressive in driving consolidation with mobile operators in some of the weaker and more unwieldy telecoms markets, including Spain, Italy and the UK.
Richard Hunter of Interactive Investor said stocks are delicately poised: "Investors are currently grappling with valuation metrics following a strong run over recent years for the main indices, with higher rates not only increasing borrowing costs for companies but also discounting the value of future profits.
"At the same time, the latest non-farm payrolls report at the end of the week is expected to show a weaker reading given the rise of the variant in December and a bout of adverse weather, with the current forecast being that around 150000 jobs will have been added.
"In the meantime, the main indices have reduced some of their losses in the year to date, although the Dow Jones remains down by 4.4%, the S&P 500 by 7% and the Nasdaq by 12%."
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Asian markets finished mixed. The Hang Seng (^HSI) gained 1.07% and the Nikkei 225(^N225) rose 1.07%. The Shanghai Composite (000001.SS) lost 0.97%.
