Risk appetite
Tuesday’s trading witnessed a clear decline in risk appetite, which greatly affected most global markets in the last sessions of the month, with investors anticipating the issuance of the US Federal Reserve’s decision tomorrow, and following the issuance of some negative data in Europe today, which reinforced investors’ concerns regarding the economic recession, and the following are the developments that took place: It witnessed the appetite for risk on the most prominent assets traded in the markets:
First: risk appetite and stock markets:
Risk appetite witnessed a clear decline in most global stock markets, with anticipation of the results of the US Federal Reserve meeting tomorrow.
European stocks witnessed a collective decline, as British stock indices fell as well as German and French stock indices, following the release of very negative German retail sales data this morning, which showed a sharp contraction.
At the same time, US stock index futures fell significantly during pre-market trading.
On the Asian level, Japanese stock indices also declined, as well as Chinese stock indices, with investors’ tendency towards risk aversion today.
Second: risk appetite and the US dollar:
Witnessed dollar Large profits during early trading, following the green currency benefited from the sharp decline in the euro following the release of very negative retail sales in Europe’s largest economy, the German economy, but it retreated following that with exposure to profit-taking sales, with the opening of the last American sessions of the currency market this month. .
At the same time, the dollar was also subjected to strong downward pressure due to the sharp decline in US Treasury yields during trading, which prompted it to give up its strong profits in the European session.
Third: the appetite for risk and gold:
Witnessed gold A sharp decline during early trading, as gold contracts witnessed a lot of downward pressure due to the strong rise of the US dollar, especially following the International Monetary Fund raised its forecast for global growth this year, which prompted investors to reduce their holdings of the yellow metal.
After that, gold was able to clearly reduce its losses, as it benefited from the dollar’s return to decline, as well as the decline in US Treasury yields, and following the news that major central banks had increased their holdings of gold at the highest pace in 55 years.
Fourth: appetite for risk and oil:
Decades slipped oil During today’s trading, following the very negative data in Germany, which reinforced investor concerns regarding a decline in demand for crude in global markets, especially following news reports that OPEC + may decide to keep the level of oil production as it is during the month of March next, in light of expectations of a recession. economy and lower demand for crude.
The effect of risk appetite on currencies and commodities:
Risk appetite and the US dollar: The dollar index – which measures the performance of the US currency once morest 6 of the major currencies – settled at 102.23 points.
Risk appetite and gold: Spot gold prices fell by 0.12% to $1,920.57 an ounce, and bullion futures prices also decreased by 0.19% to $1,935.60 an ounce..
Risk appetite and oil: Brent crude futures prices fell by 0.41% to $84.14 a barrel, and US West Texas Intermediate crude prices fell by 0.40% to $77.62 a barrel.