Home Business News Commodities experience volatility while technology takes a hit

Commodities experience volatility while technology takes a hit

9th Jan 24 9:04 am

With the financial markets continuing to undergo volatility due to ongoing geopolitical conflicts and high levels of inflation, consumers will be interested to note that the past week has been a particularly turbulent one for both commodities and technology.

On our rising table last week, natural gas witnessed a considerable uptick in value as a result of colder weather forecasts.

In the US, the winter storm hitting the East Coast led to an expected rise in natural gas demand which resulted in an increase of prices.

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Additionally, prices rose as concerns over the damage caused by the ongoing Russia-Ukraine conflict to natural gas infrastructure increased.

Elsewhere, Teva also experienced a rise in value, achieving a 12-month high. This comes as Bank of America recently raised its target price on the pharmaceuticals company to a ‘buy’ rating and increased its target price for the stock, enticing investors.

Looking at our most falling table last week, Intel saw a drop in value retreating from its successful streak.

This comes as semiconductor firm ASML chose not to ship advanced chip-production machines – which Intel uses in products such as smartphones – to China due to pressure from the US government. This has the potential to impact the company’s production capabilities, resulting in the dip in its valuation.

What’s more, due to a Barclays analyst downgrading the tech giant as well as decreasing its price target for shares, Apple also saw its share price plummet.

This was triggered by the slowdown in iPhone 15 sales in China, discouraging traders from investing in the tech giant. In fact, the revenue of Apple’s iPhone dropped approximately $5 billion in 2023 compared to 2022. Additionally, the sales of Macs, iPads and wearables were disappointing last year as consumers felt the pressures from increasing inflation and interest rates.

Furthermore, Under Armour also declined substantially. With 2023 characterised by inflation and rising interest rates, the sportswear company has suffered from reduced consumer spending, which continued during the first week of 2024. In fact, Under Armour has lost 58% since 2021 largely due to unfavourable shift in price to sales multiple.

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