There is a current decline in consumer sentiment in the United States, this is due to certain concerns about Covid and the new Delta Variant. Alhough the crude oil sector also witnessed some decline, Disney stocks are reportedly on the increase.
Covid Worries: Decline in U.S. Consumer Sentiment
Report of the week’s performance reveals that there is a high rise and growth in the economy of the United States, even with the case of inflation and a rallying labour market. With all these, the pandemic remains an issue for the state as new cases are reported daily even with the widespread vaccination. It is predicted that the sentiments of consumers are bound to reduce following this daily increase.
In August, the consumer sentiment index, which was 81.2 as of July, has seen no significant change as it remains stagnant. As a result of the new cases of the Covid, there has been a large increase in the number of cases in the last six months this increase has reached a very high level. This has fueled the argument on whether the U.S. government should approve a new dose of the vaccine. There would be a need for a booster vaccine as the new variants of the disease has affected even people that have been vaccinated.
Disney Stocks on The Rise
Following the current data on the Dow Jones Future and S&P 500, these companies are on the path of ending this earning season with high profits as the Dow Jones industry go up 50 points and trading 0.8% higher, while S&P 500 trades 0.6% higher. However, Nasdaq Composite declines to 0.1%. This has however been a great earning season for Disney as the entertainment company surpasses all predictions as they gathered more customers with their pandemic themed parks.
Monte dei Paschi Up For Sale
Monte dei Paschi, the oldest bank is currently held to be sold to Unicredit and this cuts the 64% stake it had in the Tuscan bank. As a result of the years of poor control and management, the bank has become one of Italy’s major issues despite being the 4th largest lender in the country. The EBS report for July showed that the bank would see a decline. This action is another step to finishing the restructuring of Italy’s banking industry. Lenders in Italy worry that about an increase in bankruptcy rate following the pandemic.
IMF in Belarus
Currently, there is a huge issue between the IMF and the Belarus government. There are plans for the International Monetary Funds to give about $1billion to Belarus and this is controlled by the President, President Alexander Lukashenko. But he is currently facing corruption charges from the previous year. Notwithstanding the charges before him, he still has his recognition and this is all that he needs to get the funding which has already been authorised. On Thursday, according to the International Monetary Fund, there has been proper scrutiny on the happenings and accusations.
Decline in Crude
This Friday, the statistics shows a slight decline in crude oil. This comes following the widespread cases of the new Delta variant as it lessens the demand for crude. As of 5:25 am, the oil future was on a decline of 0.3% and selling at $68.91 per barrel. The rapid increase of the new Covid variant has broken crude rebound considering the breakout in China which is the second-largest consumer of oil.
Following the data disclosed by the IEA on Thursday, the oil demand will reduce to about half a million barrels lower when compared with the data of the previous month. This is as a result of the new restrictions due to Covid.