Stock markets are in a sell-off again. The United States plans to sue OPEC countries

Last week, US initial jobless claims increased by 19,000 to 200,000. US labor productivity fell by 7.5% in the first quarter. Analysts see such figures as signs of recessionary sentiment.

The world’s largest online auction site eBay recorded a net loss in the first quarter due to portfolio revaluation. It quickly increased its net loss by 27% in January-March, although revenue was a record in the company’s history. The company’s stock price fell 18% after the report. Online marketplace Etsy Inc. cut its first-quarter net profit 40% year over year, though revenue was up. At the same time, the forecast for the current period was worse than expected. As a result, the company’s stock fell by 16.8%. Shopify also recorded a net loss in the first quarter. The company’s stock fell by almost 15%. Online travel service TripAdvisor Inc. cut its net loss by 57.5% and more than doubled revenue in 1Q 2022. The company’s stock jumped by 5%.

The Bank of England raised the interest rate by another 0.25% to 1%. The vote showed that six bank representatives voted for a 0.25% rate hike, while three members insisted on 0.5%. The monetary policy report indicates that global inflationary pressures have sharply risen since Russia invaded Ukraine. This has led to a significant deterioration in global and UK growth prospects. According to the May report’s forecast, inflation is expected to continue rising, averaging just over 9% in the second quarter of 2022 and averaging just over 10% at its peak in the fourth quarter of 2022.

Evraz is on the UK sanctions list. Evraz operates in strategically important sectors for the Russian authorities, providing 28% of the Russian market demand for railroad wheels and 97% for rails. This is critical because Russia uses the railroad to supply ammunition and send soldiers to Ukraine.

Oil prices increased for the third straight session on Friday, ignoring concerns about global economic growth, as worries about supply cuts supported prices ahead of a looming European Union embargo on Russian oil. On Thursday, a US Senate committee passed a bill that could bring the Organization of Petroleum Exporting Countries (OPEC) and its partners to lawsuits for conspiring to raise crude prices. NOPEC aims to give US courts the authority to hear antitrust suits against OPEC and other countries that Washington believes are involved in oil market cartels.

Asian stock markets traded flat yesterday. The Japanese market did not trade. Hong Kong’s Hang Seng (HK50) decreased by 0.36%, and Australia’s S&P/ASX 200 (AU200) increased by 0.82%. The Reserve Bank of Australia has released its monetary policy report. The report indicates that global inflation is at high levels and is likely to remain so for some time. Energy and food prices have sharply risen since Russia invaded Ukraine, and the spread of the COVID-19 virus in China exacerbates existing problems in global supply chains. Inflation in Australia remains lower than in many other advanced economies, but there are signs of acceleration. The inflation forecast is now much higher than anticipated three months ago. Core inflation is expected to peak at 6% in the second half of this year, driven by rising gasoline prices and a sharp rise in the cost of new homes.