Tag Archives: Trading News

World stocks have rebounded over the past week

 

World stocks have rebounded over the past week without concern about recession with oil prices decline

 

On global stock exchanges, stock prices rose sharply in the past week
thanks to improved business results and declining worries about a recession in Europe
and US crude prices stabilized below $95 a barrel for the first time since April in volatile trading last week.

 

topıc

A remarkable week in global stock markets as recession concern fades

US crude is less than $95

Libya plans to increase oil production to 1.2 million barrels per day

 

 

 

 

 

A remarkable week in global stock markets as recession concern fades

 

On Wall Street, the Dow Jones Industrial Index rose by 2 percent last week
to 31899 points, while S&P rose by 2.4 percent, to 3961
and the Nasdaq rose by 3.3 percent to 11834 points.

 

The growth of these indices is strong thanks to the better-than-expected business results of most US companies.

 

Of the 106 S&P 500 companies that have published reports
75.5 percent have earned higher-than-expected profits.

 

Analysts estimate that S&P 500 companies earned about 6 percent in the second quarter over the same period last year.

 

At the macroeconomic level, the situation is worsening,
with last week’s initial claims for unemployment benefits reportedly rising to 251000
an eight-month high.

 

A further slowdown in the growth of the US economy is also expected because the Fed will increase key interest rates sharply
again due to rising inflation next week, likely by 0.75 percentage points.

 

US GDP data will be published in the second quarter next week
and no one will be surprised if the economy turns out to shrink on a quarterly basis for the second consecutive quarter,
meaning the world’s largest economy is in recession.

 

The recession also threatens Europe because of Ukraine’s energy crisis and war, however
this concern eased somewhat after Russian gas began flowing back on Thursday through Nord Stream 1
the largest gas pipeline between Russia and Germany, after a 10-day break due to reform.

 

There was some concern that Russia could reduce or even halt gas supplies
which would certainly increase gas prices and drive Europe into recession.

 

Stock prices on European exchanges rose last week,

with London’s FTSE rising by 1.6 percent to 7276 points
while the Frankfurt DAX jumped by 3 percent to 13253, and Paris CAC rose by 2.95 percent to 6216 points.

 

However, markets are unwilling because the ECB raised key interest rates for the first time since 2011
more than expected by 0.50 percentage points.

 

The European Central Bank’s more aggressive movement shows central bank leaders are expected
to be concerned about the trend of inflation in the eurozone at record highs, above 8.5 percent.

 

However, inflation is not such a problem in Japan
In June, inflation in Japan stood at 2.2 percent
meaning the central bank could still pursue a very supportive monetary policy.

 

The Nikkei index rose for seven consecutive days on the Tokyo Stock Exchange
by4.2 percent last week to 27914 points.

 

 

 

US crude is less than $95

 

US crude prices settled below $95 a barrel for the first time since April in volatile trading on Friday
after the European Union said it would allow Russian state-owned companies to ship oil to third countries
under a sanctions amendment agreed by member states this week.

 

and US West Texas Intermediate (WTI) crude fell by $1.65, or 1.7 percent, at $94.70 per barrel
while Brent crude futures fell by 66 cents, or 0.6 percent, to $103.20.

 

WTI closed lower for the third straight week
falling over the past two sessions after data showed that gasoline demand
in the United States had fallen about 8 percent from a year earlier,
in the midst of the peak summer driving season, weighed down by record pump prices.

artıcal name World stocks have rebounded over the past week

 

 

 

 

 

Libya plans to increase oil production to 1.2 million barrels per day

 

The National Oil Corporation said in a statement early on Saturday that the National Oil Corporation in Libya
aims to restore production to 1.2 million barrels per day within two weeks.

 

The company added that current oil production is 860 thousand barrels per day compared
with 560 thousand barrels per day before resuming production.

 

Libya’s crude oil production resumed in several oil fields
following the lifting of force majeure on oil exports last week.

 

The blockade of oil production by groups allied with eastern commander Khalifa Haftar cut off funding
for the Tripoli-based Government of National Unity led by Prime Minister Abdul Hamid al-Dubibah.

 

The National Oil Corporation is striving to increase production and return it to normal rates
of 1.2 million barrels per day within two weeks, the statement said.

 

The Libyan Ministry of Oil said earlier that production exceeded 800 thousand barrels
per day and would reach 1.2 million barrels per day (BPD) next month
and the country’s oil exports at times last year amounted to 1.2 million BPD.

 

The number of oil and natural gas platforms in the United States rose this week for the third straight week
as high prices encourage increased well plate spending, boosting demand for some oil field service companies.

 

US oil platforms settled at 599 this week, gas rigs rose by 2 to 155
and the European Union looks to replace Russian gas with Nigerian supplies.

artıcal name World stocks have rebounded over the past week

The European Central is close to raising interest rates

 

The European Central is close to raising interest rates for the first time in 11 years.

The European Central Bank may decide to increase the rate hike in today’s
meeting from a quarter point to a half percent due to the ongoing price increase,
which is causing families, businesses,
and governments in all 19 euro-area countries to express increasing anxiety.

While the rate hike by the European Central Bank is long overdue,
it brings it closer to more than 80 central banks that resorted to this step,
but it also tracks the likes of the Federal Reserve,
and with the start of work the reasons to be wary increase as the immediate threat of economic chaos has been postponed.

 

topic

Russia’s gas

Russia restores gas flow through Nord Stream 1

Japan faces high inflation by keeping rates below.

 

 

 

Russia’s gas

cuts on Thursday resumed flows through the Nord Stream 1 pipeline,
and recession risks in Europe remain
and will increase if Russia carries out its threat to halt winter energy supplies.

At the level of Italy and the political crisis in which Mario Draghi resigned as prime minister this morning,
this demonstrated how quickly we can see the severity of the tension in the government
bond markets at a time when the euro fell to parity with the dollar. Ultimately,
this resulted in record inflation reaching quadruple the 2 percent target.

The last meeting of the European Central Bank in June made an extraordinary commitment to raise interest rates
by a quarter point this month to –0.25 percent to increase at the September meeting
if inflation expectations do not improve.
The markets are anticipating the decision made at today’s meeting.

 

artical name The European Central is close to raising interest rates

 

 

 

 

Russia restores gas flow through Nord Stream 1

reducing tension in Europe

Following a brief suspension of maintenance work
Russia started supplying natural gas to Europe via the Nord Stream 1 pipeline.
This action helped the continent of Europe feel some relief following
the worsening of its winter energy crisis at a time when the euro countries’ economies are subject to fluctuations
because of the pressure of a lack of supplies.

And the data issued by the gas line operator that shipments returned to work at 40% of their capacity,
and natural gas prices fell by 6.5% before these losses were reduced.
Russia has been limiting gas shipments to Europe for months at a time
when European countries depend on what little it gets to fill underground water tanks
and fuel depots in order to weather the winter.
Russian President Vladimir Putin has indicated that flows will drop to 20% as soon as next week,
due to a malfunction in two turbines, one of which needs maintenance this month,
and flows will decrease in the event that the alternative
from Canada does not reach Russia soon due to the delay related to sanctions.

After Russia’s invasion of Ukraine, European gas prices increased in 2021 to record levels,
driving up consumer costs. Additionally, as a result of the complete and potential closure of the Russian side,
which the IMF warned would expose Germany to the risk of losing 5% of its economic output,
there were also growing concerns about a global gas shortage.

 

artical name The European Central is close to raising interest rates

 

 

Japan faces high inflation by keeping rates below.

Bank of Japan Governor Haruhiko Kuroda is determined to stick to ultra-low
interest rates even if it costs him further weakness in the Japanese yen.
At a time when the European Central is seeking to increase interest rates,
and the fear of a sharp decline in the global economy contributed to
the rush of central banks to confront and treat inflation in alleviating
market pressure on the Bank of Japan, and this gave the opportunity for
the Governor of the Japanese Central Bank to continue with a short-term interest rate of -0.1%
and a ceiling 0.25% on a 10-year return despite its negative impact on the yen and weakening it.

The average inflation is expected to reach 2.3% for the year ending March,
which is very far from the explosive growth in prices abroad,
but at the same time the Central Bank expects to achieve price gains for the first time at the target levels of 2% this year,
excluding the impact of increasing the sales tax.

Observers believe that the combination of high price expectations
and non-high growth appears to be a typical hedge for the central bank in order to keep its options open,
and if the global economy avoids a major slowdown,
prices may continue to grow at a strong pace,
and it must learn the experience of the Reserve of Australia at a time
when it waits too long to reach the inflation target
and risk remaining pessimistic just to reach sustainablely high inflation.

 

“Netflix” loses 970,000 subscribers in the second quarter

“Netflix” loses 970,000 subscribers in the second quarter
but the stock is up 8%.

 

topic

netflix stock

The Russian embargo on Ukraine is causing a drop in its wheat harvest.

The escalation of the gas crisis in Germany

 

 

 

 

 

netflix stock

According to the American broadcasting firm’s business statistics for the past three months only
the number of “Netflix” customers declined to 970,000.
This decrease followed earlier predictions that the company would lose two million users.

At the same time, the price of Netflix stock increased by 8% at the close of trade on Tuesday.
The stock made a profit of $3.20, exceeding forecasts of $2.94. In the second quarter of current year 2022,
the corporation generated net profits of up to $1.440 billion,
compared to 1.353 billion dollars in the same period the previous year 2021.

In the year from 2021 to 2022, Netflix’s revenues totaled $7.97 billion,
falling short of projections of $8.03 billion,
and the platform anticipates gaining one million users in the third quarter of this year to reach 221.67 million customers.

The challenge now is to accelerate our revenue and
membership growth by continuing to improve our products, content,
and marketing, as we’ve done previously over a 25-year period,
and to better monetize our audience.
The company told shareholders that it has thoroughly investigated the recent slowdown
and learned the causes, which are password-sharing, competition, and a stagnant economy.

 

 

 

 

 

The Russian embargo on Ukraine is causing a drop in its wheat harvest.

Mykola Solsky, the Ukrainian minister of agriculture, issued a warning
that the winter wheat crop is in a state of considerable reduction,
which is escalating the global food crisis,
and that the blockade caused by Russia’s invasion of Ukraine is the cause of the decline in wheat farming.

The statements of the Minister of Agriculture came to warn of the suffering of farmers
and facing a financial crisis and the lack of payment for seeds, wages,
herbicides and fuel for the cultivation of winter wheat due to the loss of cash,
as the ongoing blockade on Ukraine and its exports through the Black Sea is the cause of the problem facing Ukraine.

He added that winter seeds, wheat and barley are subject to a decline from 30 to 60%,
which is a large percentage as a result of the aforementioned reasons,
and added that the Russians continue to steal large quantities of grain from farmers in the lands that are seized,
estimated at 500,000 tons of grain, and the war is also causing On the Ukrainian territory,
fires also broke out in dry wheat fields

This crisis is related to ongoing talks between Ukraine and Russia over resuming food exports through the Black Sea.
An agreement is anticipated before next spring; if not,
Ukraine will already be experiencing issues and its wheat harvest will be replaced by other crops like soybeans and sunflowers.

The decline in wheat and corn production next year 2023 will lead to an extension of the grain
shortage around the world and thus raise food prices for a longer period.

 

 

 

 

 

The escalation of the gas crisis in Germany

and may resort to passing energy costs to consumers.

If European nations do not respond to returning the turbine that was repaired
in Canada for the Nord Stream 1 pipeline by the end of July,
Russian President “ Vladimir Putin “ has threatened to cut gas flows to Germany
through Nord Stream 1 for a second time to 33 million cubic metres per day.

The reduction in gas supplies to Germany by about 40% and then 20% to 67 million cubic metres
on June 1st came in response to the European countries. It is noteworthy
that the flows of gas through Nord Stream 1 since its operation in 2011 have amounted to about 55 billion
cubic metres of gas annually. Russia was subjected to sanctions as a result of its invasion of Ukraine.

Currently, Nord Stream 1 is entirely shut down for maintenance,
which will be finished next Thursday, at a time when everyone is worried about fully shutting off the gas supply following it.

On the other hand, Germany will also resort to restarting its second Nord Stream 2 project,
and Putin said that there is a road ready for connection, which is Nord Stream 2, which can be activated.

cost increases for consumers
One of the suggested alternatives by the German government to manage the situation
and emerge from the crisis is to permit Uniper to pass the high gas prices on to the consumer,
which serves as one of the terms of the bailout package.
In exchange for intervening and saving the company from the damage it suffered as a result of the conflict
between Western nations and Russia over its war in Ukraine,
which sparked worries about a gas shortage in the upcoming winter and a giant benefited German gas company,
the German government is attempting to save the company by acquiring a stake in Uniper that ranges from 15 to 30 percent.
Due to this information, the stock increased by more than 6%.

 

 

 

 

UK inflation at its highest level in 40 years and the increasing cost of living crisis

The cost of living crisis has persisted due in large part to inflation
which in the UK reached its highest level in 40 years.
This puts additional pressure on the Bank of England to raise interest rates significantly next month,
and consumer prices increased on Wednesday at a rate of 9.4 percent from 2021,
which is the increase. most significant since 1982

Price increase alerts
The Bank of England issued warnings regarding probable future price increases in light of the biggest increase in inflation to yet.
Energy prices will climb once more on Tuesday,
and rates for restaurants and lodging jumped by an average of 8.6 percent.
Additionally, food prices rose by 9.8 percent, the highest amount since March 2009.

high inflation
Policy makers in the Bank of England are concerned about high inflation,
which could take hold further in the event of rising wage and raw material costs,
forcing companies to continue raising prices, and the Bank of England
is close to raising interest rates by half a point in August in intensifying efforts Defeating inflation and bringing it back to 2%.

 

 

 

 

Oil falls as the dollar declines and Asian stocks continue to rise

Oil falls as the dollar declines and Asian stocks continue to rise

 

Oil prices fell moderately on Wednesday morning after rising on Tuesday to their highs since early July
while Asian stocks continued their global rally on Wednesday as strong US earnings
and an expected resumption of Russian gas supplies to Europe helped lift risk sentiment and ease recession concern
while the dollar declined to two-week lows.

 

topıc

Brent falls to $106.76 per barrel

Asian stocks continue to rise globally as the dollar weakens

The escalation of the gas crisis in Germany

 

 

 

 

 

Brent falls to $106.76 per barrel

 

By Wednesday morning, September Brent crude futures fell by $0.59, or 0.55 percent on the London Futures Exchange
to $106.76 per barrel. 

Brent crude oil also rose on Tuesday by $1.08, or 1 percent, to $107.35 per barrel.

 

August WTI futures were at this moment cheaper in electronic trading on the New York Mercantile Exchange (NYMEX) by $0.34
or 0.33 percent, to $103.88 per barrel, during the previous session
where the futures contract rose by $1.62, advancing by 1.6 percent to $104.22 per barrel.

 

US President Joe Biden pledged on Tuesday to take “strong executive action” to combat climate change
and support renewable energy, without elaborating.

 

Data released overnight by the American Petroleum Institute indicated
that last week US oil inventories increased by about 1.5 million barrels.

 

Experts have forecast an increase of 400 thousand barrels,
and the US Department of Energy will publish its own inventory statistics later on Wednesday.

 

 

 

 

 

Asian stocks continue to rise globally as the dollar weakens

 

European futures also pointed to a stronger opening, with eurozone futures Stokes 50 rising by 0.2 percent.

 

S&P 500 futures and the Nasdaq rose by 0.5 percent, following stronger-than-expected results from US companies overnight
including Netflix Inc, allowing relief for investors concerned about rising inflation
and the Federal Reserve raising interest rates that affected corporate profits.

 

On Thursday, the S&P 500 rose by 2.8 percent while the heavy Nasdaq composite rose by 3.1 percent.

 

In Asia, MSCI’s broader index of Asia-Pacific stocks outside Japan rose by 1.2 percent
driven by a 1.6 percent jump in resource-intensive Australia and 1.7 percent in Hong Kong stocks
and Japan’s benchmark Nikkei index rose by 2.5 percent.

 

Chinese stocks rose by 0.4 percent, slowing in other markets
as the central bank kept record lending rates unchanged in a fragile economic recovery from COVID lockdowns.

 

In the analysts’ view, in addition to the technology-led rally in stocks
the flood of major news about Europe has mostly raised the euro again above 1.02 with European core yields also broadly rising.

 

 

 

 

The escalation of the gas crisis in Germany

 

The euro rose 0.2 percent to $1.0244 by Wednesday morning
after making the biggest one-day percentage gain in a month during the previous session
as traders raised their bets on interest rate hikes.

 

Russian gas flows through the Nord Stream 1 pipeline are expected to resume on time
on Thursday after scheduled maintenance is completed
easing investors’ concern about gas supplies to Europe.

 

It has been a positive night for risk, but concern about a recession has certainly not gone away
and a rebound in stocks over the past week could largely reverse the recovery
from saturation levels in the sale and extreme pessimism levels.

 

The Bank of Japan also issued a policy decision on Thursday
but no changes are expected to be made to its ultra-easy position.

 

On Wednesday

the US dollar slipped 0.1 percent against its main counterparts
bottoming out at two weeks’ lows as expectations that the Fed could turn to a 100 basis point
hike at its meeting next week eased.

 

Markets still expect the Fed to raise the rate significantly by 75 basis points to rein in inflation.

 

Other major currencies have likewise risen on the back of a weak greenback
and as banks globally become increasingly tight in their efforts to reduce high inflation.

 

The US dollar index against a basket of major currencies fell by 0.14 percent to 106.52
off a two-decade high of 109.29 last week.

 

The greenback’s decline also coincided with lower expectations
for a 100 basis point rate hike in next week’s Fed policy review.

 

The Australian dollar rose by 0.4 percent to $0.6925, after rising by 1.3 percent overnight
also the highest in a month.

 

Ahead of next week’s Federal Reserve meeting, markets had expected a 23.2 percent chance of a 100 basis point rate hike
with expectations of a massive rate hike tempered after policymakers rushed to water it down.

 

Earlier on Wednesday, Reserve Bank of Australia Governor Philip Lowe also suggested interest rates could at least double from current lows
similarly, the sterling advanced by 0.28 percent to $1.2031.

 

In contrast, the Japanese yen remained in the opposite position on Wednesday morning and was last traded at 138.155 against the dollar
as the Bank of Japan appears determined on its pessimistic stance.

 

A closely watched portion of the US yield curve remained inverted on Wednesday
with the last two-year yield at 3.2335 percent, and little changed from the previous close of 3.2310 percent.

 

Oil price stability hits Washington’s hopes

Oil price stability hits Washington’s hopes

Oil maintained the significant gains it gained on Monday to settle at $100 per barrel,
despite the US administration’s promises to expand output in the coming days.

American hopes
The White House expected the major oil producers in the OPEC + alliance to increase crude production
after US President Joe Biden’s trip to the Middle East, and Washington is seeking talks through US Treasury Secretary
Janet Yellen to persuade market parties to set the ceiling for the price of Russian oil
for further sanctions imposed on Russia and depriving it of oil revenues.

 

topic

Russian production

The European Central is moving about half a point higher this week.

The Turkish lira continues to fall faster than expectations.

 

 

 

 

 

Russian production

 

Russian oil producers produced 10.78 million barrels per day from July 1 to July 17
up 0.6 percent from the previous month.
This was due to increased domestic demand offsetting a decline in exports to other significant markets.

 

Oil demand

 

Forecasts by OPEC expects a rise in global demand by 2.7 million per day on an annual basis to reach 103 million barrels per day
and the organization indicated in its monthly report that demand in the next year 2023
will be supported by the continued strong economic performance in the major consuming countries

 

 

 

 

 

The European Central is moving about half a point higher this week.

 

The European Central Bank is considering increasing interest rates by half a point on Thursday
after setting them at a quarter of a point earlier this month in response to high inflation
This move is seen by some as a sharp departure from committed trends and
will bring the European Central Bank closer to the global drivers of the significant increases.

 

At a time when officials are attempting to raise this week, the first time in more than a decade
the ECB deposit rates saw their high in March 2023 after increases at each meeting,
but the hike of 50 basis points does not find enough support so far, as many perceive it.
Economists predict that the European Central Bank will increase borrowing prices by 25 basis points this week,
and more than 60 central banks worldwide are expected to do the same in 2022.

 

In a speech on June 28, President Christine Lagarte left space to exceed 25 basis points,
and this came days before data showed high inflation in the euro area, which rose to a higher-than-expected 8.6%,

which represents more than four times, and added that it is clear
that there is Circumstances in which graduation would not be appropriate and if we see,
for example, higher inflation or signs of a permanent loss of economic potential that limits the availability of resources

 

According to some sources, the European Central Bank is attempting to present a plan to support the bond market for debt-ridden nations like Italy,
but only if they adhere to reforms and budget restraint.
This information comes as inflation data continue to reach record highs and the euro has depreciated below parity with the dollar.

artical name Oil price stability hits Washington’s hopes

 

 

 

 

The Turkish lira continues to fall faster than expectations.

 

The Turkish lira dropped to its lowest historical level on December 20, 2021, around the time of the announcement of inflation figures,
which hit 36 percent and represented the lowest levels in 20 years, and subsequently dropped to 18.4 lira to the dollar during today’s trade
, its lowest level in seven months.

These declines came in light of the Turkish president’s insistence on implementing the policy of interest cuts,
which he sees as a demon that must be fought according to the previously announced economic model Ongoing 2022

 

In a survey, participants expected that inflation in Turkey would reach 57.90% by the end of this year,
and economic growth would be -3.3% instead of the planned 3.2%.

Perhaps the most important factors affecting the Turkish lira are the current inflation, which has reached its record levels in 24 years,
exceeding levels of 78% last month, compared to 73.5% during the month of May,
and the budget deficit, which reached 31 billion Turkish liras,
compared to a surplus last May that reached 144 billion pounds,
and revenues during the month of June amounted to 181 billion pounds,
while expenditures jumped to 212 billion pounds.

 

The hard currency of the Turkish Central Bank’s reserves fell to its lowest level in 20 years to reach 7 billion dollars last year,
and data revealed that the reserves reached 102 billion dollars,
divided into 41 billion dollars in gold deposits and 60 billion in liquidity.

 

artical name Oil price stability hits Washington’s hopes

 

 

Stocks fall as oil declines and the US dollar weakens

Stocks fall as oil declines and the US dollar weakens

 

Asian stocks decline as the dollar neared last week’s peak
but traders’ main focus was on central bank meetings
while oil prices fell after yesterday’s advance.

 

topıc

Asian stocks fall as traders look to central bank price plans

Oil prices fall after the sharp rise and the support of the weak dollar

The dollar falters slightly as the possibility of a rate hike declines

 

 

 

 

Asian stocks fall as traders look to central bank price plans

 

Asian stocks fell on Tuesday morning
after overnight declines on Wall Street and on the back of renewed concern over the COVID-19 outbreak in China.

 

MSCI’s broadest index of Asia-Pacific stocks outside Japan fell by 0.64 percent
reversing some of the previous day’s 1.8 percent gain, returning to a two-year low last week.

 

Chinese blue-chip stocks also fell 1.11 percent
abandoning gains a day earlier as mainland China reported 776 infections of the novel coronavirus
raising concern over renewed restrictions on activity to curb the outbreak.

 

European markets opened lower with futures falling by 0.75 percent
and FTSE futures losing 0.4 percent, while Japan’s Nikkei rose by 0.75 percent from Monday’s holiday.

 

 

 

 

 EUROSTOXX 50

Oil prices fall after the sharp rise and the support of the weak dollar

 

Oil prices ran out of steam on Tuesday after rising by more than $5 a barrel in the previous session
with concern that a rise in crude oil could lead to a recession that would hurt demand a lot
slightly outweighing the ongoing concern over tight supply.

 

Brent crude futures for September settlement fell by 43 cents to $105.84 per barrel by 0446 GMT
and the futures contract increased by 5.1 percent on Monday, the largest percentage gain since April 12.

 

West Texas Intermediate crude futures for August delivery fell by 28 cents to $102.32 a barrel
and the futures contract increased 5.1 percent on Monday, the biggest gain since May 11.

 

Oil prices declined in supply concern as Western sanctions on Russian crude and fuel supplies
caused by Ukraine’s conflict, disrupted trade flows to refineries and end-users
and growing concern that the central bank’s efforts to tame rising inflation could lead
to a recession that would reduce fuel demand in the future.

 

US President Joe Biden visited Saudi Arabia last week
hoping to conclude an agreement on increasing oil production to tame fuel prices.

 

However, officials from Saudi Arabia, the de facto leader of the Organization of the Petroleum Exporting Countries (OPEC)
have not clearly ensured that production increases are secured.

 

Oil prices received support from a weakening US dollar on Tuesday
which stood near a one-week low,
making greenback-dominated oil slightly cheaper for buyers with other currencies.

 

The forecast for oil inventories in the United States of America

the world’s largest oil consumer, was that crude and
distillate supplies may have risen last week while gasoline inventories are likely to fall.

 

 

 

 

 

The dollar falters slightly as the possibility of a rate hike declines

 

On Tuesday, the US dollar moved above its one-week low reached
last night against key peers as markets slashed the prospect of a percentage-point Fed rate hike this month.

 

Bets on over-easing surged last week after data showed that inflation in the United States
already at a four-decade high, continued to accelerate in June.

 

Some Fed officials did not heed such talk
and figures from Friday showed consumer inflation forecasts falling to their lowest level in a year.

 

Futures traders tied to the Fed’s short-term federal funds policy rate
which tended to increase by a full percentage point in interest rates
shifted their bets strongly in favor of a 0.75 percentage point increase at the next meeting
with odds last seen at about 81 percent.

 

The dollar index, which measures the greenback against six currencies at 107.47
was far from yesterday’s low of 106.88, but also returned from a high of 109.29 last week
a level not seen since September 2002.

 

The euro, the most weighty currency in the dollar index, also fell by 0.08 percent to $1.01355
but this came after it posted about 0.6percent overnight for the second day of strong gains.

 

The single currency fell to a low of $0.9952 on Thursday for the first time since December 2002
under the pressure of uncertainty over the euro zone’s potential energy supply crisis.

 

Despite the uncertainty, the ECB is preparing to raise interest rates on Thursday for the first time in more than a decade
it has sent a 25 basis point telegraph, but sharp inflation has led some traders to raise by half a point.

 

Elsewhere, the yen approached a 24-year low before the Bank of Japan’s policy decision on Thursday
with the central bank repeatedly committing in recent days to continuing its ultra-easy preparations.

 

The dollar was little changed at 138.135 yen, not far from Thursday’s peak of 139.38
a level not seen since September 1998.

 

The risk-sensitive Australian dollar fell 0.06 percent to $0.6809
after rising to a week-long high of $0.6853 on Monday
from a low of $0.66825 on Thursday
the weakest in more than two years.

 

Bitcoin crosses the $22,000 mark

Bitcoin crosses the $22,000 mark and a collective rise in the cryptocurrency market

Bitcoin managed to surpass the levels of $ 22.4 thousand and this was the first time since June 16 last month,
and this rise comes at a time when the US dollar is consolidating
and recording down after the US Federal Reserve cut interest rate hike expectations to 100 basis points.
The digital currencies returned to recording new heights during Monday’s trading after more losses were recorded during the previous period
,the effects did the news that the US Federal Reserve would raise interest rates by 1% to battle inflation, which hit its highest level in 40 years,
have on the cryptocurrency market and other high-risk assets

 

topic

Cryptocurrency market capitalization

Oil rises strongly after Biden failure and renewed China fears.

Gold rises amid low expectations of a rate hike.

 

 

 

Cryptocurrency market capitalization

The value rose during the past few hours only to 40 billion dollars after it succeeded in exceeding the levels of 22 thousand dollars,
and thus the total value has reached 1.02 trillion dollars, compared to 850 billion dollars during the last 5 trading days,
to achieve gains of up to 170 billion dollars, and this market value reached Bitcoin to $425 billion.

Fear Index

The consolidation of Bitcoin to the highest levels of $20,000 coincided with a drop in the fear and greed index of about four points over the past few hours
Although the cryptocurrency market is still experiencing extreme fear for the third consecutive month, the mood of traders has recently improved.

 

 

 

Oil rises strongly after Biden failure and renewed China fears.

Following the most recent wave of drops in Brent crude and West Texas crude,
which were brought on by lingering concerns that a recession would affect oil consumption,
oil prices have once more risen.
Where the rise in oil prices came after the failure of Joe Biden, the US president, to try to persuade the Gulf countries to get more oil production
And the continuing crisis of fear of demand in China in light of the fears of closures due to Corona.

And US Treasury Secretary Janet Yellen was holding meetings in order to try to set a proposed ceiling for the price of Russian oil
with some countries on the sidelines of a meeting of G-20 finance ministers.
Statements stated that setting a ceiling for Russian oil prices is a difficult issue at the present time
but the best solution is to strengthen talks between the parties concerned with the Russian-Ukrainian war.

 

 

 

 

Gold rises amid low expectations of a rate hike.

Following a significant dip the previous week, gold prices increased at the start of trading on Monday.
Today’s gains occurred as a result of a drop in the US dollar index and decreased investor expectations for a 100 basis point
reduction in interest rates at the next US Federal Reserve meeting.

At their meeting on the 26th and 27th of this month,
the US Federal Reserve’s members committed to raising interest rates by 75 basis points only. high gold
The rise in gold prices was also influenced by an increase in the US 10-year bond yield of 0.57 percent,
US 20-year bond yield of 0.34 percent, and US 30-year bond yield of 0.33 percent.

However, it is important to remember that even though gold provides a safe haven in the face of high inflation,
high interest rates reduce its appeal.

negatively affecting gold

Since the Russian invasion till today,
the Central Bank of Ukraine has decided to sell gold quantities totaling $12.4 billion.
This decision was made to assist importers in purchasing basic goods for the nation.

Spot gold rose to $1,718.70 an ounce,
and US gold futures for August delivery rose to $1,716.90 an ounce, at a rate of 0.78%,
and silver futures rose at $18.97 an ounce, at a rate of 1.37%,
and the platinum spot contract rose at $849.70, at a rate of 2.27%.

 

artical name Bitcoin crosses the $22,000 mark

Asian stocks rise with the US dollar and euro stabilizes

Asian stocks rise with the US dollar and euro stabilizes and oil prices rise 

 

Asian stocks rose on Monday after a much-needed rebound on Wall Street
but concern prevailed before the almost certain rate hikes in Europe and another round of corporate earnings reports
while the greenback stabilized after reaching two-decade highs
and oil prices rose as the number of coronavirus infections rose in China.

 

topic

Asian stocks rise on interest rate hike concern

The dollar stabilizes after reaching a two-decade high

Oil rises as coronavirus infections surge in China renewing demand concern

 

 

 

 

Asian stocks rise on interest rate hike concern

 

This week is expected to be risky for Europe waiting to see if Russia resumes gas flow through the Nord Stream 1 pipeline on July 21.

 

The ECB will continue to suffer from uncertainty holding a policy meeting as it is likely to start a tightening cycle with a 25 basis point rise.

 

Markets are also clinging to details of an anti-retail tool aimed at relieving pressure on borrowing costs for the most indebted Union members.

 

Investors found some relief in Friday’s rally on Wall Street and MSCI’s broadest index of Asia-Pacific shares outside Japan rose by 0.7 percent
after falling by 3.5 percent last week.

 

Japan’s Nikkei index closed for a holiday, but futures traded at 27,040 compared to a cash close of 26,788
while South Korean stocks rose by 1.4 percent.

 

Chinese premium companies added 0.4 percent
despite Shanghai announcing more coronavirus tests across the region.

 

S&P 500 futures rose by 0.2 percent, while Nasdaq futures rose by 0.4 percent
EUROSTOXX 50 futures rose by 0.1 percent and FTSE futures stabilized.

 

Investors are also encouraged that the Federal Reserve is likely to raise “only” 75 basis points next week
in part due to easing consumer concerns about inflation.

 

In the analysts’ view, this decline in inflation expectations as one of the reasons why we expect
that the FOMC will not accelerate the rally in the near term and will increase 75 basis points at the FOMC meeting in July.

 

It is a less severe week for US data, although the first round of rapid surveys
on global manufacturing will provide a timely reading on how industries fare this month.

 

The Bank of Japan is holding its policy meeting with concern that the sharp decline in the yen increases
the cost of imported goods and widens the country’s trade deficit.

 

However, markets assume that the central bank will adhere to its very easy policies
putting it away from major currencies that do not raise interest rates.

 

 

 

 

The dollar stabilizes after reaching a two-decade high

 

The US dollar index stood at 107.86, marginally below last week’s two-decade high of 109.290
although few appear willing to call for the peak of dollar gains.

 

The euro was slightly more stable at $1.0107, bouncing back from a two-decade low of $0.9952 last week.

 

While the dollar was more resilient at 138.15 yen, having risen by 1.8 percent last week to a 24-year high of 139.38
against a basket of currencies, the greenback settled at 107.730.

 

The Federal Reserve meets later in July and is expected to raise the benchmark US interest rate by 75 basis points,
although this is considered more conservative than last week’s 100 basis point rise, still represents a sharp increase.

 

While experts predict that the Russian-European natural gas pipeline currently closed for maintenance is set to return on Thursday
however, if the gas flow does not resume, the euro could fall against the greenback by at least 2 percent.

 

Higher interest rates and a steady dollar were a major impediment to unprofitable gold that remained stuck at $1713 an ounce
having lost 2 percent of its value over the past week.

 

 

 

 

 

Oil rises as coronavirus infections surge in China renewing demand concern

 

Oil rose on Monday morning in Asia, while investors worried about China’s coronavirus cases that could lead to increased fuel demand.

 

Brent crude futures rose by 0.64 percent to $101.81 by 4:23 a.m. GMT
and West Texas Intermediate crude futures jumped by 0.39 percent to $94.94.

 

China, the world’s second-largest oil consumer, recorded 691 infections of COVID-19 on Saturday, up from 547 a day earlier.

 

Oil opens the week more flexibly as the market absorbs the impact of demand for rising new COVID infections in China
and while the market cautiously awaits the threat of a huge event if Nord Stream 1 gas flow from Russia resumes to Europe later this week.

 

Nord Stream 1, the largest pipeline transporting Russian natural gas to Germany
began annual maintenance work on July 11 due to the past 10 days.

 

Markets are concerned about the possible extension of the lockdown due to the war in Ukraine.
The loss of gas will affect Germany, the world’s fourth-largest economy.

 

As expected, US President Joe Biden failed to get OPEC’s top producers to make any pledge to increase oil supplies.

 

Saudi Arabia’s foreign minister said that the US-Arab summit on Saturday did not discuss oil
and that OPEC + will continue to assess market conditions and do what is necessary.

 

Deutsche Bank: A recession is possible

Deutsche Bank: A recession is possible for the German economy.

The largest economy in Europe, Germany, has been warned about a potential economic recession by economists at Deutsche Bank.
They predict that Germany’s economy could contract by 1% over the course of the next year,
with sanctions also reducing the amount of Russian natural gas available to the country.
There are several reasons why Germany could experience an economic downturn in the second part of this year in America.

According to experts at the German Bank, Germany’s record inflation rate has not yet peaked,
and the ongoing Russian energy crisis has increased extreme caution across Europe,
especially in Germany because it is more dependent on Russian gas.

 

topıc

The energy crisis in Germany

Political impasse in the European Central as a result of the looming recession.

After Musk withdrew from the “Twitter” purchase deal, he faces an uncertain future.

EU: Price shock to last longer with less growth expected

 

 

 

The energy crisis in Germany

Officials in Germany are concerned about the high costs of energy used in homes,
which may triple, after Russia blocked the Nord Stream 1 gas pipeline to Germany
and announced that it is currently performing maintenance on the line that stretches to July 21.
Germany is looking for a solution. Due to worries about potential decreases in Russian natural gas supply,
the energy crisis is being solved by activating 16 idle fossil fuel power plants and extending operational licenses to 11 additional plants.

Germany’s industrial production crisis

Due to the issue with supply chains and business closures caused by the Covid-19 pandemic in China,
German industrial production increased less than anticipated in May. Russian Ukrainian

 

 

 

 

Political impasse in the European Central as a result of the looming recession

In light of the decline in the energy crisis and the lack of a radical and immediate solution thus far
Europe is preparing for a state of recession with increasing expectations of an impending decline at a time
when the continent is fading from the state of recovery that it was in after the epidemic.

The European Central Bank is seeking to raise interest rates next Thursday,
which finds itself in an awkward position, unlike what is happening in the United States
, where government stimulus has fueled a demand-driven rise in consumer prices,
and the main reason for inflation is the rise in natural gas costs due to the Russian war on Ukraine.

Potential for recession

It is likely that US price pressures will be monitored for Europe due to the US Federal Reserve’s increase in interest rates
which could result in a state of economic deflation, but there is no assurance of this because the energy crisis is currently the most significant.
All of this places the European Central Bank in front of a number of challenges.
After the charges he was subjected to for failing to act swiftly to handle the crisis,
a strict option is to suspend or limit the rate rises.

Even if a mild recession occurs later this year, inflation pressure is expected to extend well into 2023,
said Ayla Mir, chief eurozone economist at Danske Bank.
There is a 45% chance of a recession next year,
according to a Bloomberg poll of analysts, up from 30% just last month.

 

 

 

After Musk withdrew from the “Twitter” purchase deal, he faces an uncertain future.

The “Twitter” platform has filed a lawsuit against billionaire Elon Musk for upholding the terms of the contract they signed to buy Twitter for $44 billion.
The Twitter platform is awaiting a ruling on the filed lawsuit as it waits for the first court sessions in the coming days.
The first session will take place on Tuesday in the eastern state of Delaware, United States.

An engineer working for “Twitter” told AFP that the best result for me would be if we were left alone to go our own way
as there is a tense atmosphere within Twitter among the employees who are also leaving
and added that they are trying to do their work normally because the reasons for working for Twitter are still there.

In statements by the Twitter platform’s lawyers, they stated in the invitation,
“Mask’s repeated disdain for Twitter and its employees creates a state of anxiety
harms Twitter and its shareholders.” He added that Musk’s comments also expose Twitter to negative repercussions on its business operations,
employees, and share prices.

Given the challenging circumstances that Twitter is going through, it is anticipated that the conflict will continue over the ensuing weeks and months.
This will eventually have a detrimental impact on Twitter and its investors. year 2028.

artıcal name Deutsche Bank: A recession is possible

 

 

EU: Price shock to last longer with less growth expected

The European Commission said that the European economy is facing a much slower outlook in addition to the high cost of living
and this situation came due to the repercussions of the Russo-Ukrainian war
with the European Union reducing its forecast by a full percentage point from its forecast for 2023 in the new forecast published on Thursday
where economic growth in the euro area is expected to be reduced.

The EU Economic Commissioner also added that Moscow’s disruption of energy and grain supplies has caused prices to rise and weaken confidence
as the European Central Bank prepares for its first rate hike in more than a decade next week.

She also mentioned that the rise in energy and food prices increases global inflationary pressures and leads to a faster monetary policy response
In light of the decline in the euro exchange rate and with expectations of reaching $1.06 in 2022 and $1.05 in 2023
which is much higher than the current level of the euro, which is close to parity with the dollar
If this low level continues, this may lead to higher import costs with a similar impact on inflation.

artıcal name Deutsche Bank: A recession is possible

Global stocks slide

 

Global stocks slide and gold fall as the dollar rises with a decline in oil prices

 

Global stocks tumbled early in the week as investors braced for inflation data and new corporate earnings data
that could affect the Federal Reserve’s course to raise interest rates
while the precious metal fell as the US dollar appreciated, with the decline of oil.

 

topıc

Stocks fall on concern over COVUD-19 in China

Global stock markets declined last week with interest rate hikes

Oil declines on Sunday morning

 

 

 

 

 

Stocks fall on concern over COVUD-19 in China

 

The S&P 500 fell by about 1.2 percent during Sunday morning trading, the Nasdaq Composite fell by 2.3 percent
as tech stocks declined, and the Dow Jones Industrial Index fell by 0.5 percent.

 

Stocks have rebounded in recent days, with the S&P 500 rising by 2 percent last week
while Friday’s rally fell after the stronger-than-expected jobs report showed
that the labor market remains overwhelmed
raising the likelihood that the Fed will continue to raise interest rates significantly and potentially cause a recession.

 

Japanese stocks also fell on Sunday morning, driven by declines in electronics
and technology stocks as enthusiasm began for the ruling coalition’s election victory in Japan.

 

Attention was focused on economic policy, following the election and death of former Prime Minister Shinzo Abe,
and the benchmark Nikkei fell by 1.0 percent to 26535.08 after rising by 1.1 percent on Monday.

 

South Korea’s benchmark Kospi fell by 0.8 percent to 2321.31 in early trading as airlines, retailers and travel stocks withdrew.

 

 Renewed concern over the resurgence of coronavirus infections
and Wall Street’s overnight decline contributed to depression as investors refrained from big betting ahead
of the Bank of Korea’s interest rate decision on Wednesday.

 

Hong Kong stocks fell in early trading, driven by auto and tech stocks
prolonging Monday’s weakness amid concerns over China’s rising COVID-19 infections and related lockdowns.

 

 The Hang Seng Tech index fell by 0.6 percent at 4593.30
and the Hang Seng benchmark index declined by 0.2 percent to 21074.74.

 

Chinese stocks declined in morning trading, prolonging the widespread recession so far this month with the market declining on big gains in June.
The Shanghai Composite Index fell by 0.1 percent to 3,309.05, while the Shenzhen Composite fell by 0.2 percent to 2183.90.

 

 

 

 

Global stock markets declined last week with interest rate hikes

 

Last week, global stocks fell because global inflation is not receding
so central banks raised interest rates, slowing economic growth.

 

On Wall Street, the Dow Jones Industrial Index fell by 0.2 percent last week, to 31,288 points
while S&P fell by 0.9 percent, to 3,863, and the Nasdaq fell by 1.6 percent to 11,452.

 

The indices were in a much deeper negative state during the week because investors were alarmed
by the fact that inflation in the United States reached 9.1 percent during June, a new high in more than 40 years.

 

For this reason, the US central bank is expected to raise prime interest rates by 0.75 percentage points in July,
for the second consecutive month, with some speculating that the Fed will raise interest rates by a full percentage point.

 

So, the economy is slowing down, and the only question is whether the Fed will succeed “quietly” in reviving the economy or driving it into recession.

 

Analysts’ estimates of corporate earnings came from the S&P 500, which remains at levels before the results began to be published.

 

Thus, analysts expect the company’s profits to grow by 5.6 percent in the second quarter compared to the same period last year.

 

On European exchanges, stock prices fell during last week’s trading,
the FTSE in London fell by 0.5 percent to 7,159 points,
while Frankfurt’s DAX fell by 1.2 percent to 12,864 points.

On the other hand, the Paris CAC remained virtually unchanged at 6,036 points
on the Tokyo Stock Exchange, and the benchmark Nikkei rose by 1.1 percent to 26,788 points.

 

 

 

 

Oil declines on Sunday morning

 

Oil fell early in the morning during the Asian session due to continuing concerns over the recent outbreak
of Covid-19 and restrictions in China,
and markets are bracing for another round of mass testing for Covid in China that could hurt oil demand.

 

The monthly West Texas Intermediate (WTI) crude futures fell by 1.1 percent to $102.90 per barrel
and Brent crude in the first month fell by 1.0 percent to $106.02 per barrel.

 

US dollar rises against Euro and Asian currencies due to strong demand for the greenback

 

Most Asian currencies and Group of Ten currencies fell against the dollar in the Asian morning session
due to strong demand for the dollar amid losses in US stock futures and some regional equity markets.

 

In the analysts’ view, the US dollar as a big momentum this time as the US dollar enjoys a real recovery right now,
the euro against the dollar fell by 0.1 percent to 1.0031.

 

Gold Falls as US Dollar Rises

 

Gold fell in the early morning session in Asia, weighed down by the strength of the dollar,
and experts believe that the price of precious metals is likely to increase,
because its usual inverse relationship with long-term government bond yields,
and inflation-protected securities, underscores itself in part.