An worker looks out over the petroleum-cracking complex on the Lukoil-Nizhegorodnefteorgsintez oil refinery in Nizhny Novgorod, Russia.
Andrey Rudakov | Bloomberg | Getty Images
This report is from today’s CNBC Each day Open, our latest, international markets newsletter. CNBC Each day Open brings investors up to the mark on every thing they should know, regardless of where they’re. Like what you see? You may subscribe here.
It appears like markets are reliving the worst of 2022. But investors still hope for a fresh start this 12 months.
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The underside line
A selloff within the U.S. markets, rising oil prices and escalating U.S.-China tensions — it appears like we’re back within the worst a part of 2022.
U.S. stocks had a terrible week. The Nasdaq dropped 0.61% on Friday, giving it a 2.41% loss for the week. The Dow gained 0.5% and the S&P rose 0.2%, but they still ended the week lower, with the S&P turning in its worst weekly performance in nearly two months.
Higher energy prices are back, too. The Brent contract for April, which covers oil from Europe’s North Sea, hit $86.39 a barrel, having risen greater than 8% for the week. U.S. West Texas Intermediate crude futures rose to $79.72 a barrel, an 8.63% increase for the week — its best since October. Those prices spiked about 2% each on Friday after Russia said it could cut oil production next month to retaliate against Western sanctions.
Relations between america and China are fraying. After the U.S. shot down a suspected spy balloon last week, the Commerce Department imposed sanctions on six Chinese aerospace corporations that it said support China’s espionage program. On Sunday, the U.S. military shot down a fourth unidentified object — following a second object downed on Friday and a 3rd over the Yukon on Saturday. Though the objects’ origins are still unclear, it’s increasingly likely more sanctions will come.
Amid all that, investors are specializing in the upcoming U.S. consumer price index reading for January with renewed intensity. The numbers will indicate whether we’ll be forced to relive the dark days of 2022, or if there’s hope in at the very least one a part of the economy — America’s consumers.
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