The speculation of China’s Zero-Covid Policy re-implementation put pressure on energy stocks. Non-Primary Consumers and Energy weakened by 1%, leading to sectoral declines and sending the S&P 500 down 0.4% earlier in the week. Moreover, investors are worried about the Zero-Covid Policy re-implementation after China recorded an increase in infection cases. Implementing the Zero-Covid Policy will reduce China’s economic activity, affecting their demand reduction for crude oil. The weakening of crude oil prices, both Brent and WTI, by more than 5% a week was also influenced by reports about Saudi Arabia and other OPEC oil producers that were discussing a production increase of up to 500,000 barrels per day. This matter will be further considered at the OPEC+ meeting on December 4.
The lack of sentiment in today’s economic data makes NHKSI Research project JCI will tend to move sideways. At the beginning of the week, JCI went downward by 10 points or closed at the level of 7,071. Additionally, the Technology Sector depreciated more than 1% or led the sectoral decline, followed by the Financial Sector and Basic Industries, which weakened by 0.7% and 0.3%, respectively.
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