Oil Price Still Low, China-US Tension, FAANG Stock Prices Increase

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  • The oil price continues to be low and has in fact fallen by 1.6% despite the outcome of the OPEC meetings to cut production of oil by 1.2 million bpd. Currently the price of crude sits at $51.75
  • Canada is unresponsive to China’s demands to release Meng Wanzhou, the CFO of Huawei who is accused of dealing with Iran and being involved in a cover up. Eventhough Ms Meng is a Chinese citizen US sanctions still stand and they will arrest anyone who does business with Iran.
  • Trade deals and negotiations are under pressure from this arrest as Ms Meng is not only the CFO of Huawei but also the founders daughter and the family is well connected to the Chinese ministry.
  • Robert Lighthizer who is the US trade representative has said that the hard deadline for reaching trade agreements with China is March 1st.
  • The market sentiment seems that most believe this to be too short a time to reach any meaningful agreements regarding tariffs and trade between US and China and there is fear in the market that the trade war will continue. This can be seen in last week’s sell off of futures and stocks and the S&P 500 futures are still trading below fair value.
  • Siris Capital Group and Evergreen Coast Capital is to acquire Travelport Worldwide (TVPT) for $15.75 per share, a $4.4 billion dollar deal sending the share price up by $1.4%
  • Linde PLC has also seen it’s stock price increase by 1.8% based on news of their share buyback program of $1 billion.
  • Facebook has likewise started a buyback program of $9 billion and has seen increases in stock price today by over 3%.
  • All of the FAANG stocks, Facebook, Apple, Amazon, Netflix and Google stock prices has stopped falling and are currently seeing increases in share price.

2 COMMENTS

  1. finally the faang stocks are beginning to turn around I feel lucky that FB stock is on it’s way up again because I am very invested in it and had lost about 30% of my value in this last year alone…

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