International oil prices surge! European and American stock markets all decline

On March 6th, local time, major stock indices in Europe and the United States all declined, with large-cap technology stocks in the U.S. falling across the board.

In the commodities market, NYMEX crude oil futures and ICE Brent crude futures both surged, surpassing $91 per barrel, while international gold prices recovered the $5,100 per ounce level.

The U.S. February seasonally adjusted non-farm employment data was released, showing a decline instead of the expected growth, which to some extent boosted expectations of a Fed rate cut. However, the sustained strength of international oil prices may lead to inflationary pressures, potentially putting the Federal Reserve in a difficult position.

European and U.S. stock markets decline collectively

Chinese concept stocks rise against the trend

On March 6th, local time, the three major U.S. stock indices opened lower and continued to decline. According to Wind data, by the close, the Dow fell 0.95%, the Nasdaq dropped 1.59%, and the S&P 500 declined 1.33%. For the week, the three indices fell 3.01%, 1.24%, and 2.02%, respectively.

Image source: Wind

Large-cap U.S. tech stocks all declined, with the Wind U.S. Tech Seven Giants Index down 1.74%. Nvidia fell nearly 3%, Amazon, Meta, and Tesla each dropped over 2%, Apple declined over 1%, Google—C fell 0.87%, and Microsoft fell 0.42%.

Image source: Wind

Contrary to the trend, popular Chinese concept stocks rose, with the Nasdaq China Golden Dragon Index up 0.69%. Shengda Technology surged over 22%, GDS Holdings increased over 7%, JD.com and Xpeng Motors both rose over 6%, and GSX Techedu and NetEase both gained over 3%.

Image source: Wind

On March 6th, European stock markets mostly declined. According to Wind data, by the close, the FTSE 100, CAC 40, and DAX indices fell 1.24%, 0.65%, and 0.94%, respectively. All three indices dropped more than 5% for the week.

Image source: Wind

February non-farm employment data surprises to the downside

Rising oil prices may interfere with Fed rate cut plans

The highly anticipated U.S. February non-farm employment data was released, showing a surprising decline that boosted market expectations for a Fed rate cut. However, the recent sustained strength of international oil prices may bring inflationary pressures, complicating the Fed’s decision.

Data shows that U.S. non-farm payrolls in February decreased by 92,000, versus an expected increase of over 50,000. The previous figure was revised from a gain of 130,000 to 126,000. The unemployment rate rose to 4.4% in February, higher than the expected and previous 4.3%.

For the Fed, a cooling labor market is a key reason to consider rate cuts. Previously, markets speculated that the Fed might start cutting rates only in the second half of the year. However, with the ongoing geopolitical conflicts driving crude oil prices higher, inflation pressures may intensify, making it difficult for the Fed to balance employment and price stability.

International oil prices surge

Gold prices recover the $5,100 per ounce level

In the commodities market, international oil prices continued their recent rally, and precious metal prices also increased.

According to Wind data, as of 6:15 AM Beijing time on March 7th, NYMEX crude oil futures and ICE Brent crude futures both surged 12.67% and 8.76%, respectively, both breaking through the important $90 per barrel level. The former has gained over 36% this week, and the latter nearly 30%, with year-to-date gains exceeding 50%.

Regarding gold, COMEX gold futures and London spot gold prices both recovered the $5,100 per ounce level, rising 2.02% and 1.64% respectively in a single day.

Image source: Wind

On the news front, according to CCTV News, on March 6th, International Energy Agency Director Fatih Birol stated that logistics disruptions caused by conflicts in the Middle East are posing challenges to many countries.