Oil and European stocks decline and the US dollar stabilizes as gold declines
Oil prices fell on Wednesday after industry data showed a sudden rise in the United States,
while European stock futures fell,
and the US dollar stabilized in morning trading.
topıc
Oil declines and Brent falls to $96.16 per barrel
The dollar stays calm before the CPI storm
European stock futures decline
Oil declines and Brent falls to $96.16 per barrel
Oil prices fell on Wednesday morning, after Tuesday’s trading ended in the red zone,
despite rising reports of the suspension of energy supplies from Russia to Eastern European countries.
By this morning, Brent crude futures for October fell by $0.15,
or 0.16 percent on the London Futures Exchange,
to $96.16 per barrel, and on Tuesday Brent crude fell by $0.34,
or 0.4 percent to $96.31 per barrel.
WTI futures prices for September at this time in electronic trading on the New York
Mercantile Exchange (NYMEX) declined by $0.22,
or 0.24 percent to $90.28 per barrel.
During the previous session, the above-mentioned futures contract rose by $0.26,
or 0.3 percent to $90.5 per barrel.
Data from the American Petroleum Institute, released late Tuesday,
indicated that crude inventories in the United States rose by about 2.2 million barrels last week,
compared with forecasts of a rise of lower than 100 thousand barrels.
Last Monday, it became known that on August 4,
Ukrainian company “Ukrtransnafta” halted crossing Russian oil
through the territory of Ukraine due to non-payment of transit fees.
The Drujba oil pipeline branch that passes through Russian territory delivers oil to Hungary,
Slovakia and the Czech Republic refineries, and according to the company,
about 250 thousand barrels of oil per day were usually delivered in this way.
This letter supported quotes that rose sharply, however,
and by the end of the session, growth was limited and later
faded under developments around the negotiations to revive the Iran nuclear deal.
EU diplomats drafted the final text of the JCPOA restoration document and handed it over to the Iranian side.
artıcal name Oil and European stocks decline and the US dollar stabilizes
The dollar stays calm before the CPI storm
The dollar traded strongly on Wednesday in anticipation of US inflation data,
which even if it comes in lower than expected will likely be so steep as to make the United States steep.
The figures are due to be released at 1230 GMT,
and economists predict year-on-year headline inflation of 8.7 percent,
a slight decline from June’s massive figure of 9.1 percent.
The headline inflation rate is expected to be 0.5 percent on a monthly basis.
Currency market movements were slight in the lead-up,
and for previous issues, reactions were quieter than in the volatile bond market.
The dollar was broadly flat overnight, although it temporarily stopped the decline that began in mid-July.
The dollar was at 135.14 Japanese yen and stabilized at $1.0208 per euro,
while Australian and New Zealand dollars fell slightly,
with the Australian dollar finally registering $0.6958 slightly above the 50-day moving average.
A quick reading of the reaction of policymakers may come from Federal Reserve officials Charles Evans and Neil Kashkari,
who are scheduled to deliver speeches at 1500 GMT and 1800 GMT,
although they will have another set of price data in August ahead of a policy meeting in September.
In the analysts’ view, the one-time sharp decline in the CPI at this point should not mean much to the Fed.
China’s inflation data is also due on Wednesday,
although it is expected to appear strongly under control.
In addition, gold futures fell by 0.4 percent to $1804.25 per ounce.
The yuan faced some pressure from China and the United States,
tensions and China’s widening real estate and banking crisis,
but in foreign trade, the yuan stabilized at 6.7550 per dollar.
artıcal name Oil and European stocks decline and the US dollar stabilizes
European stock futures decline
European stock markets are expected to open slightly lower on Wednesday
before major US stocks release inflation data,
which could provide evidence to the US of plans to tighten the Fed’s future monetary policy.
At 0600 GMT, Germany’s DAX futures fell by 0.3 percent,
France’s CAC 40 futures fell by 0.1 percent and the UK’s FTSE 100 futures fell by 0.1 percent.
Global stock indexes were on tenterhooks this week ahead of the latest US Consumer Inflation Report,
which looks for signs that prices are nearing the peak,
providing the Fed with reason to back down in its aggressive campaign to tame the highest inflation rate in decades.
The consumer price index is set to stand at 08:30 a.m. EDT and is also expected to stand at 8.7 percent for July,
down slightly from 9.1 percent the previous month.
While this decline may indicate that inflation has peaked,
it will remain near its highest level in 40 years.
The Fed noted that many monthly declines in CPI growth were needed,
before it allowed for tighter monetary policy,
so a significant decline would be needed to change the situation dramatically.
Data earlier Wednesday showed China’s consumer price
and producer price indices grew at a slower rate than expected in July,
showing the country is still grappling with damaging COVID-19 lockdowns.
artıcal name Oil and European stocks decline and the US dollar stabilizes