China, oil and the dollar – car brand plans US IPO with $1 billion

The global oil market continues to surprise consumers and market participants with its news. Every day, the tabloids publish contradictory stock market news.

On December 12, a summit between the Chinese leader and the heads of Arab states was reported. Xi Jinping stated that China would buy significant quantities of oil and gas products, but would pay exclusively in its national currency.

Mutual settlements in US dollars will not be relevant for China, but it is not yet known to what extent such a decision would please the Arab bosses.

However, Saudi Arabia, the world's largest oil exporter, has begun negotiations with China to use the yuan to pay for energy supplies. Chinese authorities are trying to weaken the US dollar, which will accelerate de-dollarization.

Against this backdrop, there is interesting news from Bloomberg – the tabloid reports that it has raised a gigantic sum from WisdomTree Brent.

Increased investments in WisdomTree Brent

A US publication writes that WisdomTree Brent raised around $4 million in the week from December 10 to December 500. Investors invested en masse in light of the fall in oil prices.

Brent fell by 11%, the sharpest drop since August this year. The large influx of investors allowed the fund's capital to "grow" to $700 million.

Traders, however, are in no hurry to get upset, as they remain hopeful that demand for crude oil will stay as high next year as it has been. China has implemented a policy of easing pandemic restrictions, meaning there are buyers willing to purchase even larger quantities of oil than before.

Meanwhile, the Chinese automaker is planning an IPO in the US to raise more than $1 billion.

Zeekr has confidentially filed a public offering application in the United States

Zeekr is a direct competitor to Tesla and its Chinese counterpart Nio, the electric car brand produced by Geely. The brand's plans are far-reaching, despite the fact that it only has one 001 crossover in its collection - to conquer the European market in 2023.

Before listing on the New York Stock Exchange, the automaker had considered a similar location in Hong Kong, but the US exchange was given priority with the assurance that more serious investments could be made there.

According to analysts, this will be the first major IPO of Chinese stocks in the US in 1,5 years. Analysts, including US conglomerate Morgan Stanley, are also reporting disappointing news about the state of the US market.

Morgan Stanley warns of collapse of the US market

The owner of the world's largest brokerage firm warns investors that US stocks could "decline" in the first quarter of 2023. At the same time, he doesn't specify the role online casino stocks will play in Germany – although the popularity of German casinos is regularly reported on the Casino Zeus website.

Investors in the US market should keep an eye on corporate earnings, advises Morgan Stanley, and not inflation or Fed policy. Meanwhile, data on the consumer price index for November was released on December 13.

On December 14, the US Federal Reserve will announce its interest rate decision, which will trigger considerable activity in the stock market. Michael Wilson recommends that shareholders and potential investors focus on the shortly announced decline in corporate earnings.

The chief US equity strategist predicts that the deteriorating financial results of companies will have a serious impact on share prices in 2023. The specialist expects that companies will generate an operating profit of $195 per share next year.

This figure is below market expectations among investors. Bloomberg expects it to not fall below $215.

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