All articles tagged with #global manufacturing
China's factory activity has contracted, signaling a blow to the country's economic momentum. The decline in manufacturing activity suggests a slowdown in global manufacturing, as China is a major player in the global supply chain. This contraction raises concerns about the strength of China's economic recovery and its impact on the global economy.
Oil prices stabilized after earlier declines due to disappointing economic data from major economies, as investors awaited a speech by U.S. Federal Reserve Chair Jerome Powell for insight on interest rate movements. Manufacturing data from various countries indicated a grim outlook for global economies, raising concerns about demand. On the supply side, Iran's crude oil output is expected to reach 3.4 million barrels per day by the end of September, despite ongoing U.S. sanctions. Additionally, U.S. officials are reportedly considering easing sanctions on Venezuela's oil sector if the country holds a free and fair presidential election. While U.S. crude inventories fell more than expected, an increase in gasoline stocks suggested weaker fuel demand. Analysts anticipate that Saudi Arabia, as the de facto leader of OPEC, will extend its voluntary production cut into October to support the market.
World markets have largely ignored OPEC's latest production cut and instead focused on stalled global manufacturing and tense U.S.-China relations. Crude oil prices remain below pre-pandemic levels and are tracking year-on-year declines of 20%. The U.S. Institute for Supply Management reported that manufacturing activity slumped to the lowest level in nearly three years in March, alarming rates and bond markets. The S&P500 ended higher, helped by a 5% jump in energy sector stocks, while Big Tech and Tesla were the main losers. The market's attention now turns to the U.S. labor market ahead of Friday's March payrolls report.