Oil is popping and shares are flopping as markets head again to 2022

Brent Delta topside oil rig at Seaton Port in the UK on May 5, 2017.

Ian Forsyth | News from Getty Images | Getty Images

This report is from today’s CNBC Daily Open, our new newsletter for international markets. CNBC Daily Open brings investors up to speed on everything they need to know, no matter where they are. Do you like what you see? Here you can sign up.

It feels like 2022 again for the markets. But investors want a fresh start this year.

What you need to know today

• Adidas shares plunged 11.64% after the company warned it could lose around €1.2 billion ($1.3 billion) in revenue if it fails to clear its Yeezy shares. The German sportswear company ended a partnership with Ye (formerly known as Kanye West), the face of Yeezy, after he made anti-Semitic comments.

• PROFESSIONAL Disney has been making headlines lately with its profit bang and extensive restructuring plan. But is it wise to enter the Magic Kingdom? Two investors plead for and against buying the shares.

The final result

A sell-off in US markets, rising oil prices and escalating US-China tensions – it feels like we are back in the worst part of 2022.

US stocks had a terrible week. The Nasdaq fell 0.61% on Friday, giving it a 2.41% loss for the week. The Dow was up 0.5% and the S&P was up 0.2%, but they still ended the week lower, with the S&P posting its worst weekly performance in nearly two months.

Higher energy prices are also back. The April Brent contract, which covers oil from Europe’s North Sea, hit $86.39 a barrel after rising more than 8% on the week. US West Texas Intermediate crude oil futures rose to $79.72 a barrel, up 8.63% for the week – the best since October. Those prices rose about 2% each on Friday, after Russia said it would cut oil production next month in a bid to resist Western sanctions.

Relations between the United States and China are frayed. After the US launched a suspected spy balloon last week, the Commerce Department imposed sanctions on six Chinese aerospace companies allegedly supporting China’s spying program. On Sunday, the US military shot down a fourth unidentified object – after shooting down a second object on Friday and a third on Saturday over the Yukon. Although the origin of the objects is still unclear, it is becoming increasingly likely that further sanctions will follow.

Amid all of this, investors are focusing with renewed intensity on the upcoming January CPI reading. The numbers will tell if we’ll be forced to relive the dark days of 2022, or if there’s hope in at least one part of the economy – American consumers.

Subscribe to Here to get this report straight to your inbox every morning before the market opens.