Oil prices rose about 1% on Monday, spurred by the prospect of strong summer driving demand and as tensions in the Middle East and drone attacks on Russian refineries led to concerns about supply. However, an easing U.S. dollar added to the crude price strength. Brent futures for August delivery settled at $86.01 a barrel, advancing by 0.9%.m, while U.S. crude settled at $81.63 a barrel, gaining 1.1%. It is forecasted that crude oil inventories will plunge during summer due to increased travel, tourism.
Argentina’s Economy Struggles Amid Austerity, Rising Unemployment
Argentina slipped into a technical recession in the first quarter of this year as job losses surged amid stringent austerity measures led by libertarian President Javier Milei, who prioritizes restoring fiscal stability. The country’s gross domestic product (GDP) contracted by 2.6% in the first quarter compared to the final quarter of 2023, marking the second consecutive quarterly decline—a standard indicator of recession. The unemployment rate climbed to 7.7% in the first quarter, up from 5.7% at the close of last year, resulting in approximately 300,000 newly unemployed individuals since the previous quarter. As an economist himself, the president aims to rectify Argentina’s finances following years of fiscal deficits that have frequently resulted in sovereign debt defaults and tarnished the country’s standing among global investors.
Indian Shares Close Higher On Back Of Autos, Consumer Stocks
Indian shares closed with modest gains on Monday, buoyed by auto and consumer sectors. However, small- and mid-cap stocks declined following news of regulatory scrutiny over “front-running” allegations at a local mutual fund. The NSE Nifty 50 inched up 0.16% at 23,537.85, while the S&P BSE Sensex settled 0.17% higher at 77,341.08. Auto stocks surged by 0.87% in the session, helped by two-wheeler maker Hero MotoCorp’s that rose by 1.33% after a price hike announcement. Consumer gained 0.72%, bolstered by hopes of a rebound in mass, rural consumption
South African Stocks Slip Below 80,000pts Psychological Line
The JSE index experienced a slight decline, trading below the 80,000 mark primarily due to pressure from tech giants, industrials, and luxury retailer Richemont. However, there is progress in negotiations over cabinet positions between the ANC and the Democratic Alliance, the two largest parties in the unity government. They are collaborating to form a broad coalition with smaller parties. Globally, traders remained attentive to upcoming US PCE inflation data and the approaching first debate between Joe Biden and Donald Trump later in the week.
