This will affect Oslo Borse on Tuesday

This will affect Oslo Borse on Tuesday

Nordnet's Roger Berntsen believes Oslo Bors will open flat, or within range [-0,4, 0,4] percent.

The analyst notes in his morning report that the Nasdaq index rose to a new all-time high on Monday, driven by strong performance from several technology giants, including Nvidia.

“Few companies have been more talked about in the past two years than Nvidia, thanks to its cutting-edge technology and strong financial results. The company has increased in value by almost 500 percent over that period, and is now the third-largest listed company in the world,” he writes. Whether this rally is going to continue or not,” he points out that Nvidia will present Q1 numbers tomorrow, which will provide more insight into the company’s future growth potential.

Berntsen also points out that stocks in Asian stock markets trended lower last night, so there is little momentum to be gained from that region today.

Asia

There was little improvement in stock markets in Asia on Tuesday morning. In Japan, the Nikkei index rose marginally by 0.05 percent, while the broader Topix index was unchanged.

On the other hand, China's Shanghai Composite Index fell by 0.41 percent, and Hong Kong's Hang Seng Index fell by 2.05 percent. South Korea's KOSPI weakens by 0.59 percent.

Australia's S&P/ASX 200 index fell 0.07 percent after investors last night looked at the minutes of the country's central bank meeting in May. It showed that the Reserve Bank of Australia (RBA) is considering raising interest rates due to rising inflation risks.

Oil price

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On Tuesday morning, Brent crude fell 0.55 percent to $83.25 per barrel, while West Texas Intermediate crude fell 0.60 percent to $79.32 per barrel. In comparison, a barrel of North Sea oil was trading at $83.62 per barrel at the end of the Oslo Stock Exchange on Friday.

Consequently, Brent crude oil fell slightly compared to the level at closing time on the Oslo Stock Exchange on Thursday before the long weekend.

Oil prices are being pushed lower in line with expectations that continued high US inflation and rising interest rates will weaken demand from consumers and industry, Reuters writes. The Federal Reserve (US central bank) said on Monday that it is waiting for more signs of a decline in inflation before considering cutting interest rates.

– Fear of weak demand leads to selling as expectations for federal interest rates are further away, analyst Toshitaka Tazawa at Fujitomi Securities tells Reuters.

Over the weekend, oil prices were relatively unaffected despite heightened geopolitical tension following several Ukrainian drone attacks on Russian refineries, a new Houthi offensive in the Red Sea, and a helicopter crash that killed Iranian President Ebrahim Raisi on Monday.

Otherwise, market participants will focus on the OPEC+ meeting on June 1, which will determine the group's supply policy for the second half of the year.

Wall Street

The Nasdaq Composite ended the week's first trading day with a new all-time high, up 0.7 percent to 16,794. The broader S&P 500 rose 0.1 percent, while industrials heavyweight Dow Jones ended 0.5 percent lower.

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Everything is in place to continue the rally, at least in the short term, Tom Lee, head of analysis at Fundstrat Global Advisors, said earlier in the day according to CNBC.

“As we said earlier in the month, we expect the market to change from… Fear of May to Buy in MayAs the weeks passed, this was the case. We expect this to continue over the next week as well.”

Nvidia stock rose 2.5% on the day, after several analysts upgraded the stock ahead of the quarterly report, which will be filed on Wednesday.

Read the full US update here.

Oslo Stock Exchange

The benchmark Oslo Borse was flat for a long time, but recovered in the surge and finished up 0.5 percent.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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