Reopening of China’s economy comes as oil prices rise

  • U.S. stocks rose on Monday as investors liken rising oil prices to a reopening of the Chinese economy.
  • WTI crude oil prices briefly topped $120 a barrel on Monday for the first time since March.
  • Apple investors are watching the WWDC event, where it is expected to unveil new hardware products.

U.S. stocks edged higher on Monday as investors weigh a continued rise in oil prices against a reopening of the Chinese economy.

China’s economic reopening, which has been virtually halted for two months amid a surge in COVID-19 cases, could help alleviate the ongoing supply chain disruptions that have plagued businesses throughout the pandemic over the past two years. Popular Chinese stocks like Alibaba and jumped 7% on Monday.

But with China reopening, demand for oil will increase, which put upward pressure on the price of the commodity on Monday morning. WTI Crude Oil briefly rose above $120 in Monday morning trading, hitting its highest level since early March.

Here’s where the U.S. indices were shortly after Monday’s 9:30 a.m. ET open:

Oil isn’t the only commodity to rise on Monday. Wheat prices jumped 4% amid poor US harvests and a possible India-Egypt grain-for-fertilizer trade deal.

Shares of ride-sharing company Didi soared 66% on Monday after a report said China was set to end its cybersecurity investigation and allow new users to download and use the Didi’s mobile app. China launched its security investigation into Didi last year and was unhappy with its decision to list its shares on the New York Stock Exchange.

Elliott Management sued the London Metal Exchange for $456 million over the commodity center’s suspension of nickel trading in March. The activist hedge fund, which was founded by billionaire investor Paul Singer, has filed a lawsuit saying the LME illegally reversed nickel trades it made on March 8, after the price of nickel jumped 250% to exceed $100,000 per ton.

Oil prices were roughly flat after briefly surging above $120 a barrel on Monday morning. West Texas Intermediate crude oil rose 1.75% to $120.99 a barrel. Brent, the international oil benchmark, rose 0.14% to $119.89.

Bitcoin jumped 0.64% to $31,437. Ether prices rose 1.78% to $1,910.

Gold rose 0.28% to $1,855.40 an ounce. The 10-year Treasury yield rose 2 basis points to 2.98%.

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