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Breaking Through the $80 Mark for the First Time
The continued rise in oil prices has begun to put psychological pressure on the stock market, especially after oil prices exceeded the $80 mark for the first time. Investors are beginning to worry that high oil prices will significantly increase corporate costs, thereby affecting performance growth.On the day oil prices broke through $80 in intraday trading on the 12th, the three major U.S. stock indexes closed with mixed gains and losses. Analysts noted that the market has begun to react negatively to high oil prices. For example, airline stocks listed in the United States were sold off one after another. The American Stock Exchange Airline Index closed down 2.8% that day, and US Airways Group suffered the largest decline, reaching 4%, closing at $29.89. Some large manufacturers are also under pressure due to the surge in oil prices. Alcoa fell 1.6% that day to $33.65.
European stock markets also fell for the first time in three trading days at midday yesterday, with 15 of the 17 major stock markets in Western Europe falling at one point. Analysts pointed out that the impact of high oil prices seemed to dominate trading in European stocks that day. Aviation stocks including British Airways, Europe's third largest airline, fell sharply, and chemical stocks also fell. As of 19:50 Beijing time yesterday, among the three major European stock markets, the Paris and Frankfurt stock markets had fallen, and the London stock market was basically flat.
In Asia, the stock market of Japan, the world's second largest economy, has also been affected by rising oil prices. While the Nikkei managed to close out of positive territory, the Topix fell to near four-week lows. Canon led technology stocks lower as investors worried that record energy prices would depress global consumer spending.
Other Asia-Pacific stock markets also posted mixed gains and losses, with worries about high oil prices dampening enthusiasm for long positions. Among them, stock markets such as Taiwan, Singapore and the Philippines all fell, and gains in rising regions were also suppressed.
Some are happy and some are sad. While airlines and manufacturers are worried about rising energy costs, major oil companies are "secretly enjoying themselves", which is reflected in the stock market, where the stock prices of various oil companies continue to rise. For example, Lukom, Russia's second largest oil producer, recently announced that thanks to increased sales of refined oil and rising international crude oil prices, the company's second-quarter profits increased by 8.4% year-on-year, setting the best level for the same period in history.
In major stock markets, oil stocks have surged in recent days. As U.S. stocks closed on the 12th, the S&P energy stock index rose 0.8%, with Exxon Mobil and other stocks significantly outperforming the market. In yesterday's Japanese stock market, energy and resource stocks strengthened across the board. Inpex, Japan's largest oil developer, rose 3.5%. Mining stocks such as Nippon Mining Holdings also rose sharply.
