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Investor Buying at Saudi Aramco

Investor Buying at Saudi Aramco 1920 1143 Energy-markets

About 4 million investors want to acquire a stake in the world’s largest oil company, having closed the Saudi Aramco’s retail tranche before the IPO one day before the completion of applications.

The contribution reached 32.6 billion riyals for $ 8.7 billion. The third part will be the largest sale of shares in the world. At the same time, it was reserved for retail investors. A nationwide advertising campaign, offering loans in excess of the standard limits, to finance the purchase influenced investors.

Some retail investors may invest in institutional offers using funds offered by local banks. People familiar with this issue wish to remain anonymous until the transaction is completed.

Trump has Agreed to the Hong Kong Bill

Trump has Agreed to the Hong Kong Bill 1920 1281 Energy-markets

The President of the United States nevertheless agreed to pass the bill on the protection of the rights of protesters in Hong Kong submitted by Congress. Trump commented that he decided on such a crucial step out of respect for the Chinese leader, China and the citizens of Hong Kong.

However, the Chinese authorities called the actions of the United States as interference in their domestic economic policies. The Chinese Foreign Ministry said that the adoption of this law will entail retaliatory measures from the Chinese side.

Markets expect this to affect the future course of trade negotiations with China. During the Asian trading session, this news negatively affected the interest of players. As a result, the AUD came under pressure, and the safe yen strengthened.

Growing Consumer Confidence in the Eurozone

Growing Consumer Confidence in the Eurozone 1920 1280 Energy-markets

The index of business and consumer confidence in the eurozone economy rose to 101.3 points from 100.8 points, according to the European Commission. Analysts had expected the indicator to rise to an average of 101 points.

The confidence indicator of European industrial companies rose from 9.5 points in October to minus 9.2 points. The final forecast provides for the growth of the indicator to minus 9.1 points.

The growth of the indicator shows that companies are extremely optimistic about future production volumes and finished goods inventories. However, companies are still wary of declining export demand and are assessing employment prospects in the sector and the possibility of price increases with great pessimism.

The confidence index in the service sector rose to 9.3 points from 9 points in the outgoing month and exceeded forecasts of 8.8 points.

The consumer confidence indicator rose to minus 7.2 from minus 7.6 points in November.

Deere Profit Declines Due to Trade Tensions

Deere Profit Declines Due to Trade Tensions 1920 1323 Energy-markets

Deere (NYSE: DE) & Co. reported a decrease in profit in the 4th quarter. due to trade tensions and bad weather conditions in the US agricultural belt, which slowed down the purchase of equipment by farmers.

The company’s profit was $ 2.14 per share, compared with $ 2.30 per share for the quarter ended November 3. According to Refinitiv Eikon, analysts had expected a figure of $ 2.13 per share.

Deere expects net profit in fiscal year 2020 of $ 2.7-3.1 billion, but analysts predicted $ 3.5 billion.

Sales of the company’s agricultural and turf equipment will be reduced by 5-10% in the next fiscal year. Industrial sales of agricultural equipment in the US and Canada are projected to fall by about 5% based on lower demand for large equipment.

Deere shares rose about 19% this year and fell 4.3% in over-the-counter trading.

Sales in the construction and forestry segment of the company will decrease by 10-15% next year.

Wall Street Highs amid Trade Optimism

Wall Street Highs amid Trade Optimism 1920 1280 Energy-markets

The principal Wall Street indices closed at record highs as investors gave a positive assessment to the news of trade negotiations between the US and China, including US economic data.

In the third quarter of 2019, US GDP was 2.1%, as reported by the Department of Commerce, citing preliminary data. Analysts had expected growth of 1.9%.

The Dow Jones Industrial Average index was 28.164 when it grew by 0.15%, the S&P 500 – by 0.42% to 3.153.65 points, the Nasdaq Composite increased by 0.66% to point 8.705.18.

Shares of Deere (NYSE: DE) & Co fell 4.3% after low profit from quarterly earnings from agricultural machinery manufacturer.

After analysts at Raymond James raised their stock recommendation, Under Armor (NYSE: UAA) Inc, a sportswear maker gained 6.17%.

Oil Market Balancing in 2020

Oil Market Balancing in 2020 1920 1080 Energy-markets

In all likelihood, the excess oil supply in the 1st half of 2020 will be offset by the deficit in the 2nd half of 2020. OPEC believes that the oil market will be balanced next year, so they will adhere to the current volume of decline in oil production.

At the upcoming OPEC meeting, oil producers will decide on further production volumes. Continued current production quotas are expected to continue. The initiative expires in March next year.