The dollar closed at $3,947.54 on average, which represents an increase of $15.8 compared to the Representative Market Rate (TRM), which for today’s session stood at $3,931.74
The opening price recorded by the Set-FX platform was $3,950, while the high reached $3,866 and the low $3,933.50. During the day, US$1,232 million were negotiated through 1,926 transactions.
Stocks steadied on Tuesday after China pledged to boost monetary policy support for the covid-19-hit country’s economy, whose tribulations have clouded prospects. prospects for global recovery.
European stocks recovered from a six-week low, with energy and mining companies leading the recovery while commodity prices recovered Monday’s losses. US stock futures fell after Monday’s choppy close ahead of tech majors’ gains.
In addition to promising more assistance, the People’s Bank of China also said it will promote healthy and stable development in financial markets. Most of Beijing is being tested for the virus, stoking fears of an unprecedented lockdown there.
Treasuries fell and oil rose in a sign of steadier investor confidence. But the risk of an economic downturn from the China lockdowns, as well as the Federal Reserve’s aggressive policy tightening, continues to weigh on markets.
The prospect of a slower economic expansion coupled with persistent inflation is causing a feverish mood in the markets. The panoply of risks encompasses the pandemic, supply chain disruptions, a Federal Reserve tightening and Russia’s war in Ukraine. The search for portfolio buffers in the US is evident in the highest relative cost of loss protection sales contracts in two years.
“It’s a question of what monetary policy is going to be like and it’s super unknown,” Nancy Davis, chief investment officer at Quadratic Capital Management LLC, said on Bloomberg Television.
An index of Asia-Pacific stocks climbed higher for the first time in four sessions amid a 3% jump in technology shares in Hong Kong. Mainland Chinese stocks fell, but avoided the kind of drop they witnessed on Monday. The offshore yuan and dollar gauge were little changed, while the yen rose amid short-covering.
Oil prices rose modestly on Tuesday in a volatile session as the market weighed supply concerns from Russia against demand from China. European Brent crude rose 2.86% to $105.17, while US WTI crude rose 23.71% to $102 a barrel.
Concerns about demand in China, the world’s largest crude importer, added to downward pressure on Tuesday. The Chinese capital, Beijing, has expanded mass testing for covid-19 to much of its almost 22 million inhabitants, as the population prepares for an imminent confinement similar to that seen in Shanghai.Read full story
However, both oil contracts were up more than a dollar a barrel at the start of the session, following the People’s Bank of China’s statement that it will increase monetary policy support for the real economy.Read full story
“I continue to expect more political support, but not the policy deluge that markets have been expecting, which could leave oil markets adrift in the short term, looking for support in the US summer travel season and in EU sanctions,” Stephen Innes of SPI Asset Management said in a note.
The prospect of a supply shortage in the physical market related to the withdrawal of Russian oil provided support for prices. Indeed, parliamentary parties in Germany’s ruling coalition have called on the government to go ahead with a plan to phase out Russian oil and gas imports “as soon as possible”; however, analysts say the release of oil from emergency reserves has eased concerns about supply shortages.
Elsewhere, in a bearish sign for oil markets, five analysts polled by Archyde.com estimated on average that US crude inventories had risen by 2.2 million barrels in the week to April 22.
The survey was conducted ahead of the release of the American Petroleum Institute’s (API) inventory report at 8:30 p.m. GMT on Tuesday. Official data from the Energy Information Administration will be released on Wednesday.