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Venezuelan President Chavez Death: Oil Production Continues Normally

Published 03/07/2013, 03:40 AM
Updated 05/14/2017, 06:45 AM
US Stocks wiped out the damage by the recession and hit all-time highs in yesterday 's American session. Overnight trading saw the Dow Jones Index finish at 14,256, more than doubling its low of 6547 points during the financial crash in March 2009. Asian stocks have continued the good work in Asian trading, pushing higher and higher. This boost across the stock markets comes from the world central banks pumping money into their economic systems. These actions have even overridden damage such as political problems in Greece and Italy and contracted corporate growth in Japan.

Venezuelan President Chavez Death: Oil Production Continues Normally

The other headline shaping the financial market is the death of Venezuelan President Chavez. He died Tuesday night, at the age of 58, after battling cancer for 2 years. Venezuela is one of the main sources of oil in the world with as much as nearly 256 billion barrels, yet the nation has not taken full advantage of exploiting its oil reserves. Investors will be keeping their eyes on Venezuela over the coming days. The State oil company PDVSA have called for calm, and assured that the death of the President will not affect oil production. Venezuela is the 11th largest exporter of crude oil in the world and is proving to be an ever-more important source for China. Currently, oil in China accounts for 95 %t of the country’s earnings.


US Stocks
Global equity markets are positively healthy and have had several excellent trading sessions, especially in the US with the DJIA closed up by 0.89 per cent at 14,254, S&P 500 Index up by 0.96 per cent and the Nasdaq Index up by 1.32 per cent. The Dow Jones' last high was in October 2007. The US saw its non-manufacturing Index rising to 56.0 in February from 55.2 in the previous month, exceeding expectations of a drop to 55.0.

Asian Stocks

Asian stocks followed the US trading session with positive upwards moves even with the strengthening YEN. The Nikkei 225 in Japan soared 1.65 per cent, its highest high since September 2008 just before the worst time in the global crash. The Nikkei’s best performers were Toyota and Sharp.

The Hang Seng in Hong Kong climbed 0.87 per cent and the Shanghai Composite gained 0.35 per cent. Australian S&P/ASX 200 gained 1 per cent after the country’s Q4 GDP added 0.6 per cent.

European Stocks
Even European equities were higher this morning on the back of strong speculation of further easing by Central Banks. Investors are turning their attention to ECB policy meeting.

This morning, the EURO STOXX 50 gained 0.19 per cent, French CAC 40 added 0.35 per cent and German DAX 30 rose by 0.47 per cent. Political instability continues to plague Italy; new president Giorgio Napolitano is threatening to appoint a technocratic government after last month's deadlock.

Forex
The USD held ground against the EUR, and even gained against the YEN today. Traders are keeping an eye on the Bank of Japan, ECB and Bank of England policy meetings tomorrow, and US non-farm payrolls on Friday. The greenback was inching and down against the EUR. USD/JPY touched 93.39 in overnight trading.

The GBP/USD pair touched 1.59097 this morning, with the GBP moving lower against the dollar before the Bank of England’s meeting tomorrow.

The AUD met a 7 day high today against the USD after GDP data was released that matched expectations. The pair touched 1.0301 overnight, the highest level since Feb 25th.

Commodities
Crude oil prices little moved this morning, as investors eye weekly US stockpile data of crude later today. Oil traders little affected by the news of the death of Venezuelan President Hugo Chavez. April delivery for Crude oil was at $90.80 in this morning’s European session. Natural Gas prices in US trading session pushed on from Mondays advances, as weather forecasts indicate more cold weather. Natural gas for April delivery are at $3.583 btu a gain of 1.49 per cent. Gold slightly higher this morning with April delivery at $1576.30 a gain of 0.15 per cent on the previous day.

Todays Trading
GBP on show today with Mervyn King speaking, followed by ADP non-farm Employment in US and Canadian interest rate change. Investors waiting for policy meetings by the BOJ, ECB and BOE on Thursday and on Friday US nonfarm payroll release.

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