2023-06-16 10:30:00
Markets in a week .. the recovery of oil and stocks, and the decline of gold
With the close of trading today, Friday, oil tends to rise following two weekly losses amid optimism regarding Chinese demand, while gold tends to record a weekly decline amid expectations of interest hikes. It was topped by the health care sector at the end of a busy week of monetary policy decisions by central banks.
And while the Russian Energy Ministry stated that it considers it realistic to keep oil prices at regarding $80 a barrel, according to what was reported by the official Tass news agency today, Friday, prices are heading to record a weekly rise today, Friday, following incurring losses for two consecutive weeks, amid optimism regarding the high demand for energy in the world. China, the largest importer of crude, and the weakness of the dollar.
By 06:32 GMT, Brent crude futures rose 20 cents, or 0.3%, to $75.87 a barrel, while US West Texas Intermediate crude futures rose 16 cents, or 0.2%, to $70.78. The two benchmarks rose regarding 3% during the previous session, according to Archyde.com data.
Analysts expect prices to be supported by the voluntary crude production cuts of the Organization of the Petroleum Exporting Countries (OPEC) and its allies since May, and the Saudi cuts in July. However, market sentiment is clouded by a weak economic outlook, as China’s industrial output and retail sales growth missed expectations in May.
The European Central Bank raised interest rates, yesterday, Thursday, to the highest level in 22 years, as expected, while the Federal Reserve (the US central bank) indicated this week a new increase of at least half a percentage point by the end of the year, knowing that high interest rates They ultimately lead to higher borrowing costs, which can slow economic growth and reduce demand for oil.
Gold and precious metals
In the precious metals market, gold prices fell today, heading towards recording a slight weekly decline, while dealers evaluate the recent US economic data and the US Central Bank’s signals for more monetary tightening. The price of an ounce of gold fell in spot transactions by 0.2%, to 1954.83 dollars, by 04:50 GMT. US futures also fell 0.2% to $1,967.3.
The yellow metal fell to its lowest level in 3 months yesterday, Thursday, before changing course and ending the day higher, following US economic data eased some concerns regarding the Federal Reserve’s signals regarding raising interest rates in the future. Gold is considered a safe haven amid economic uncertainty, but high interest rates reduce the attractiveness of the yellow metal, which does not yield a return.
As for the rest of the precious metals, silver settled in spot transactions at $ 23.8451 an ounce, and platinum did not witness a significant change, recording $ 985.55. But the two metals are heading for a weekly loss. Palladium also settled at $ 1397.9, and is heading to record the best weekly performance since April.
Stock exchanges
In stock markets, the Japanese Nikkei index rose to its highest level in 3 decades, and achieved gains for the tenth consecutive week on Friday, as investors welcomed the Japanese central bank’s adherence to the monetary easing policy without change. The Bank of Japan made good on its pledge to continue the massive stimulus of the economy.
The Nikkei index rose 0.7% to 33,706 points at the close, following touching a 33-year high in late trading. The index achieved weekly gains of 4.5%, and rose over 10 consecutive weeks by 22%, marking the longest period of rise in 11 years. The broader Topix index increased 0.3% today and 3.4% during the week.
In Europe, stocks rose at the open today, supported by gains issued by the health care sector at the end of a week full of monetary policy decisions in central banks. And by 07:17 GMT, the European Stoxx 600 index rose 0.2%, and the healthcare sector index rose 0.5%.
The Stoxx 600 Index ended lower on Thursday following the European Central Bank raised lending costs and waved further tightening of monetary policy, in an attempt to control persistent inflation, a day following the US central bank suspended interest rate hikes.
currency movement
The yen fell following the Bank of Japan kept interest rates very low today and expected inflation to slow later this year, reiterating its stance of monetary easing that contradicts the tightening policies pursued by other central banks in the world. As widely expected, the Bank of Japan kept the short-term interest rate at -0.1% and the 10-year yield at zero% under its yield curve control policy.
The yen fell sharply following the decision and hit a 15-year low of 153.97 once morest the euro, following declining more than 1% in the previous session. The Japanese currency fell in the latest trading 0.25% to 140.66 once morest the dollar.
As for the euro, it is heading to record its best week in months, following the European Central Bank raised borrowing costs to the highest level in 22 years, and indicated more interest rate hikes in the future. This, combined with some weak US economic data, sent the dollar broadly lower as traders cut their bets on how much higher US interest rates would be needed.
The British pound rose to its highest level in more than a year, recording 1.2794 once morest the dollar in early Asian trading, and was last traded at 1.2784 once morest the dollar, as dealers bet strongly that the Bank of England will likely raise interest rates for the thirteenth meeting in a row next week. .
The dollar index fell to its lowest level in one month at 102.08 points once morest a basket of currencies on Thursday, following the release of weak data on the US economy. And settled in the latest trading at 102.21 points.
1686917176
#Markets #week #recovery #oil #stocks #decline #gold
