European stocks were on track to outperform Wall Street on Friday due to high demand for exporter shares as major currencies in the continent dropped against a strong dollar.
Stocks and the euro were steady ahead of an European Central Bank meeting on Thursday, after stubborn U.S. inflation numbers triggered the biggest global market selloff in months and left Japan’s yen at a new 34-year low.
President Christodoulides visited the Vassiliko construction site to chat with the Chinese CPP company workers, who had resumed welding for the natural gas storage infrastructure. Despite progress on welding, the jetty remains unfinished due to disagreements between CPP and the Natural Gas Infrastructure Company. CPP terminated collaboration with a Cypriot contractor, causing delays in the project. The completion of the project by the promised deadline of 2024 seems unlikely. Additionally, the construction of the natural gas transportation system is stalled, further prolonging the project. This indicates that the project will take more time and resources than initially anticipated.
The price of Brent crude oil for May deliveries has surpassed per barrel, with negotiations currently at .1. This marks the highest prices since January 1, 2024, and also a seven-month record. Retail fuel prices in Cyprus are expected to increase further due to the rise in international oil prices.
Russia’s benchmark stock index reached its highest level since February 2022 on Monday, while the rouble also strengthened slightly against the U.S. dollar. The MOEX Russian index rose 0.9% to 3,361.5 points, the strongest since Feb. 24, 2022. The dollar-denominated RTS index also increased by 0.9% to 1,147.5 points. The rouble was 0.2% higher at 92.29 to the dollar. There are concerns of potential weakening in the rouble in the upcoming days due to the end of a favorable month-end tax period and possible demand for dollars and euros in the U.S. and Europe after Easter. The rouble also saw changes against the euro and yuan. Brent crude oil, a key export for Russia, dropped 0.3% to .71 a barrel.
The government’s termination of the zero tax rate on motor oil and petrol has led to an increase in fuel prices by 8.3 cents/litre, affecting citizens’ transportation and the retail sector. A green tax is expected to be imposed in October-November, further increasing fuel prices. The international Brent price is currently around per barrel, indicating that prices are unlikely to decrease soon. The average price of unleaded petrol in the EU-19 as of March 25 was €1,813.10, showing an increase of 1.05% from the previous week.
Fuel prices have surged following the termination of the government’s zero tax measure on petrol and diesel, resulting in an average increase of 8.3 cents per litre. The average price of unleaded 95 fuel was €1.413,47.
The Cyprus Composite Leading Economic Index (CCLEI) is showing a downward trend and is about to flatline at 0% growth.
Oil prices were lower on Friday but expected to gain over 3% for the week due to the International Energy Agency raising its 2024 oil demand forecasts and a decline in US stockpiles. Brent crude futures were down to .83 a barrel, and US West Texas Intermediate crude was at .70. The IEA increased its 2024 oil demand forecast by 110,000 barrels per day (bpd) to a rise of 1.3 million bpd, citing disruptions from Houthi attacks on Red Sea shipping and forecasting a slight supply deficit if OPEC+ maintains output cuts. US crude stockpiles fell unexpectedly as refineries increased processing and gasoline demand rose. China’s central bank kept a key policy rate unchanged, focusing on currency stability, while signs of slowing economic activity in the US were observed, with no expected Federal Reserve interest rate cuts before June.
Bitcoin reached a two-year high of ,285 early in the Asian day, marking its highest point since late 2021. It was trading at ,850, up 2% for the session. Bitcoin’s record high is ,999.99, set in November 2021. The cryptocurrency has seen a 50% increase in value this year, with a significant portion of the rise occurring in the last few weeks, coinciding with a surge in trading volume for US-listed bitcoin funds. Spot bitcoin exchange-traded funds (ETFs) were approved in the United States earlier in the year, attracting new large investors and boosting market enthusiasm. Ether, a smaller cryptocurrency, has also increased by 50% year-to-date, reaching ,490 on Monday, close to its two-year highs. This rally in cryptocurrencies has occurred alongside record highs in major stock indexes such as Japan’s Nikkei, the S&P 500, and the Nasdaq, as well as lower volatility in equities and foreign exchange markets.