Stocks continue to rise and gold falls with the yen remains at its lowest against the dollar
Asian and US stocks are rising during Wednesday morning trading with anxiety and tension over US inflation. Similarly
oil futures rose as the dollar rose against a basket of six other currencies as gold fell this morning
Evest follows market developments in the following report
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Stocks continue to rise and Nikkei rises 0.55 percent
Oil rises and Brent crude exceeds $121 per barrel
Gold falls during the Asian session
The yen continues to fall to 20-year lows against the dollar
Stocks continue to rise and Nikkei rises 0.55 percent
Asian stocks rose on Wednesday morning, boosting Wall Street’s recovery
but gains remained under control because of concern that the central bank’s aggressive policy tightening would
stifle global growth and increase the risk of an inflationary economic recession
On Tuesday, the World Bank cut its global growth forecast by about a third to 2.9 percent for 2022
warning that Russia’s invasion of Ukraine has compounded the damage from the COVID-19
pandemic and that many countries are now facing a recession
However, US stocks rose to close higher for the second consecutive day, boosting the mood in Asia
MSCI’s broadest index of Asia-Pacific stocks outside Japan rose by 1.15 percent
offsetting most of its losses in the previous session, while Japan’s Nikkei 225 rose by 1 percent
Australia’s S & P/ASX 200 rose 0.72 percent, recovering half its decline on Tuesday
after the central bank unexpectedly raised interest rates by the most in 22 years
and announced further tightening in the future
India’s central bank is also expected to raise interest rates later today
in an effort to curb high prices, with pricing further increases
On Thursday
the European Central Bank meets and markets expect to lay the groundwork
for at least rapid rises in interest rates, if not a small hike
One economist’s view was that central banks’ increases were already positive
because they would allow us to curb inflationary pressures somewhat
adding that markets could correct their trajectory from Tuesday
For its part, US Treasury Secretary Janet Yellen told senators yesterday
Tuesday, that she expects inflation to remain high
and the Biden administration is likely to increase inflation expectations by 4.7 percent
for this year in its budget proposal
Hopes that China’s economy will slowly get back on track as the strict COVID-19
lockdown eases have also boosted Chinese stocks
with Hong Kong’s Hang Seng rising by 1.22 percent, while China’s benchmark CSI300 rose by 0.47 percent
Oil rises and Brent crude exceeds $121 per barrel
Oil prices continue to rise under traders’ expectations that demand for energy resources in the global market
will exceed supply due to the start of the auto season in Western countries
as well as the lifting of China’s COVID-fighting restrictions
Analysts expect oil markets to face a deficit of 500 thousand barrels per day in the second half of this year
Data from the American Petroleum Institute (API) showed US oil inventories increased for the week ending
June 3 by 1.845 million barrels
after falling by 1.181 million barrels the previous week
Experts forecast a decline in inventories last week by an average of 1.8 million barrels
However, such an increase in inventories is unlikely to calm the market
as its size is at the lowest level of the season in the past nine years
The cost of August futures for Brent crude on the London Futures Exchange
on Wednesday morning was $121.15 per barrel
up 0.48 percent, an increase of $0.58, higher than the previous session’s closing price
As a result of Tuesday’s trading, these futures rose by $1.06 by 0.9 percent to $120.57 per barrel
WTI oil futures for July in electronic trading of the New York Mercantile Exchange
(NYMEX) stood at USD 120.11 per barrel during the day’s first trading
$0.7 percent higher than the final value of the previous session
Yesterday, the cost of these futures rose by $0.91, or 0.8 percent
to $119.41 per barrel, the highest price since March 8
Experts expect a decline in oil stocks of 2.9 million barrels, an increase in gasoline reserves
by 2 million barrels and distillates by 800 thousand barrels
Gold falls during the Asian session
Gold fell 0.20 percent this morning, with gold falling 0.20 percent this morning
with the precious metal futures trading at US 1,848.US 5
Silver fell by 0.49 percent during July, trading at the US $22.07 per ounce
while copper recorded an estimated 0.80 percent decline for July, trading at the US $4.41 per pound
The yen continues to fall to 20-year lows against the dollar
The yen hit a new 20-year low against the US dollar at 133 and fell to a seven-year low against
and the euro as traders awaited a meeting of the European Central Bank
which is likely to leave Japan alone among its main peers in sticking to super trade
Dollar index futures measuring the performance of the greenback against a basket of six other major
currencies also rose by 0.25 percent to be traded at $102.6
The US Federal Reserve is expected to raise its benchmark interest rate by 50 basis points next week and again in July