Japan’s Nikkei Index Falls: The Japanese Nikkei index fell on Wednesday due to a decline in the share of Fast Retailing,
the owner of the Uniqlo store chain, in addition to Wall Street’s decline yesterday.
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Gold continues to rise and form new historical peaks
Oil continues to rise amid ongoing geopolitical tensions
Gold continues to rise and form new historical peaks.
Gold prices continued to hit record levels during Wednesday’s trading session.
This was due to increasing inflation fears and rising demand for gold bullion as a hedging tool.
Despite doubts about the reduction of US interest rates and the rise in Treasury yields,
investors turned to gold.
Gold still attracts safe-haven flows amidst ongoing events
in Ukraine and escalating tensions between Russia and the West.
Despite the rise in US bond yields and the possibility of the Federal Reserve
not cutting interest rates in June, gold continues to receive support.
Gold has risen by over 10.8% this year and is on track to
achieve gains for the seventh consecutive day.
What makes the rise in gold unusual is its
ability to advance despite traditional negative conditions,
such as the rise in the dollar’s value, increased Treasury yields,
and expectations of higher US interest rates for a longer period.
Japan’s Nikkei Index Falls
The Japanese Nikkei index fell on Wednesday due
to a decline in the share of Fast Retailing,
the owner of the Uniqlo store chain, in addition to Wall Street’s decline yesterday.
Japanese technology company shares were affected by their counterparts in the United States,
and the earthquake that hit Taiwan did not significantly impact
the shares of Japanese companies related to chips.
The Japanese Nikkei index closed down 0.97% at 39451.85 points,
after falling earlier in the session to its lowest level since March 18 at 39217.04 points.
Fast Retailing, considered a heavyweight stock in the index, fell by 3.34%,
and the company’s shares significantly contributed to the index’s
decline by about 154 points out of the total decrease of 387 points.
Long-term US Treasury yields rose the night before to their highest level since November,
by more than 4.4%.
Oil continues to rise amid ongoing geopolitical tensions.
Oil prices continued to rise on Wednesday,
as investors were concerned about crude and
fuel supplies due to Ukrainian attacks on Russian
refineries and escalating tensions in the Middle East between Israel and Hamas.
Brent crude contracts rose by 0.19% to $89.09 a barrel,
and West Texas Intermediate US crude contracts increased by 0.8% to $85.22 a barrel.
Geopolitical tensions affect the markets,
and oil prices rise to their highest in five months.
Meanwhile, the Mexican company Pemex is reducing its oil exports,
and US crude oil inventories fell last week.
The US government is expected to release its data later today,
OPEC+ is not expected to change its oil production policy during its meeting today.
Japan’s Nikkei Index Falls