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Market News Financial breakfast on June 9: The dollar rose slightly, the price of gold barely stayed above the 1850 mark, and the strong demand for US oil broke the 120 mark again
Financial breakfast on June 9: The dollar rose slightly, the price of gold barely stayed above the 1850 mark, and the strong demand for US oil broke the 120 mark again
Before the release of U.S. inflation data, concerns about economic growth boosted gold’s safe-haven appeal and provided support for gold prices, but the U.S. dollar maintained a volatile upward trend, keeping gold prices under pressure; U.S. crude oil is currently holding near a 20-year high , oil prices rose more than 2% overnight, reaching a new high of $123.16 per barrel. The demand for gasoline in the United States is still increasing, and in the expectation that China's crude oil demand will increase, investors are increasingly worried about including Iran supply in several countries.
2022-06-09
11646
In early Asian trading on Thursday (June 9), spot gold hovered above 1850, as concerns over economic growth boosted gold's safe-haven appeal ahead of the release of U.S. inflation data, providing support for gold prices, but the dollar Maintaining a volatile upward trend, the price of gold is still under pressure; U.S. crude oil is currently holding near a high in more than 20 years, and oil prices surged more than 2% overnight, hitting a high of $123.16 per barrel again, and the demand for gasoline in the United States is still increasing. , while investors are increasingly concerned about supplies from several countries, including Iran, amid expectations that China's crude demand will increase.
In commodities closing, Brent crude futures rose $3.01, or 2.5%, to settle at $123.58 a barrel, while U.S. crude futures rose $2.70, or 2.3%, to settle at $122.11 a barrel. It was the highest close for Brent and U.S. crude since March 8, when crude futures posted their highest close since 2008. U.S. gold futures settled up 0.2 percent at $1,856.50 an ounce.
At the close of U.S. stocks, the Dow Jones Industrial Average fell 269.24 points, or 0.81%, to 32910.9; the S&P 500 fell 44.91 points, or 1.08%, to 4115.77; the Nasdaq fell 88.96 points, or 0.73%, to 12086.27 .
U.S. stocks ended lower on Wednesday as U.S. Treasury yields rose above the psychologically important 3 percent mark and oil prices jumped, raising concerns about the outlook for inflation and interest rates.
Markets fell broadly, with the S&P 500 down more than 1 percent, snapping a two-day winning streak.
Intel Corp tumbled 5.3 percent, the biggest drag, after Citigroup cut its forecast for the chipmaker for the second time in a week. Citigroup pointed to uncertain demand for PCs and forecast the company could issue a warning of weaker-than-expected second-quarter earnings. Other chip stocks also fell.
Brent crude rose above $123 a barrel and hit a fresh 13-week high. The Dow Jones Transportation Index fell 3.8%, significantly underperforming other indexes. The S&P 500 energy <.SPNY> was the only sector to end the day higher.
"The 10-year U.S. Treasury yield is up more than 3 percent, and that's probably part of the reason we're seeing stocks fall today," said Robert Pavlik, senior portfolio manager at Dakota Wealth. Higher interest rates also reflect inflation and market volatility."
U.S. 10-year Treasury yields climbed after tepid demand for the 10-year Treasury note auctioned by the U.S. Treasury Department. Rising yields are often a negative for stocks.
As of the close, the Dow Jones Industrial Average fell 269.24 points, or 0.81%, to 32910.9; the S&P 500 fell 44.91 points, or 1.08%, to 4115.77; the Nasdaq dropped 88.96 points, or 0.73%, to 12086.27.
Investors were also cautious ahead of Friday morning's release of U.S. consumer price data. The report is expected to show inflation remained stubbornly high in May, but year-on-year increases in core consumer prices, which exclude volatile food and energy, are likely to ease.
The Fed is expected to raise rates by 50 basis points at both its June and July meetings, with a similar move likely in September in an effort to fight inflation.
Gold edged higher on Wednesday, barely closing above the 1850 mark, as worries about economic growth boosted its safe-haven appeal ahead of U.S. inflation data that could provide guidance on the Fed's rate hike schedule , the bulls still have scruples.
U.S. gold futures settled up 0.2 percent at $1,856.50 an ounce.
"We're seeing this push-pull mentality in the gold market... The focus now will be on Friday's CPI data to see whether inflation is actually starting to ease a bit or continues to be hotter than expected," High Ridge Futures said David Meger, head of metals trading at .
Gold faces resistance from the Federal Reserve, which now appears committed to fighting soaring inflation, Meger said.
U.S. Treasury Secretary Janet Yellen said the current 8 percent annual rate of inflation is "unacceptable" for the U.S. and that a 2 percent inflation target is an "appropriate target" for the Fed.
Although seen as a hedge against inflation, gold is sensitive to interest rate hikes, which increase the opportunity cost of holding non-yielding gold and silver.
Gold edged higher despite higher U.S. Treasury yields and a relatively strong dollar.
On the physical front, however, consultancy Metals Focus said demand for gold will decline this year due to weak jewellery sales and retail investment in China due to the coronavirus lockdown and economic slowdown.
Oil prices jumped more than 2 percent on Wednesday to a 13-week high as U.S. demand for gasoline continued to rise despite record highs, while investors grew increasingly concerned amid expectations of higher demand for crude from China Supply from several countries, including Iran.
Iran said it was dismantling two surveillance cameras installed by the International Atomic Energy Agency (IAEA) at a uranium enrichment facility after the IAEA board passed a resolution criticizing Iran for failing to adequately explain traces of uranium at an undisclosed location.
The move has heightened tensions with the United States and other countries negotiating with Iran over its nuclear program, and could keep sanctions in place, keeping Iranian oil out of global markets for longer.
Analysts said the nuclear deal with Iran could increase global crude supplies by about 1 million barrels per day.
Brent crude futures rose $3.01, or 2.5%, to settle at $123.58 a barrel on Wednesday, while U.S. crude futures rose $2.70, or 2.3%, to settle at $122.11 a barrel.
It was the highest close for Brent and U.S. crude since March 8, when crude futures posted their highest close since 2008.
The U.S. Energy Information Administration (EIA) said U.S. commercial crude inventories unexpectedly rose last week, while crude stockpiles in the Strategic Petroleum Reserve fell at a record pace as refinery runs rose to their highest level since January 2020.
EIA crude inventories rose by 2 million barrels in the week to June 3 to 416.8 million barrels, compared with analysts' expectations for a decline of 1.9 million barrels. U.S. gasoline inventories fell 800,000 barrels last week to 218.2 million barrels, compared with analysts' expectations for an increase of 1.1 million barrels.
“The reduction in gasoline inventories was a bright spot in the report, and markets across the U.S. were tight,” said Tony Headrick, energy market analyst at CHS Hedges, noting that even with gas at the pump above $5 a gallon in many parts of the country, Demand remains strong.
The International Energy Agency (IEA) has warned that Europe could face energy shortages in the coming winter as it sanctioned Russia after it invaded Ukraine.
UAE Energy Minister Suhail bin Mohammed al-Mazroui said on Wednesday that efforts by OPEC+ oil producers to raise output were "not encouraging", noting that they were 2.6 million bpd short of their target.
The dollar index rose 0.2% on Wednesday to near 102.55, reversing earlier losses as U.S. stocks fell, boosting the greenback's safe-haven appeal, while the euro strengthened ahead of the European Central Bank's policy announcement.
USD/JPY kept refreshing the highs of more than 20 years. It closed up 1.23% on Wednesday, and it still rose slightly on Thursday. As of 07:30, USD/JPY reached a maximum of 134.52, the highest level since February 27, 2002 at 2222 , the euro hit its highest level against the safe-haven yen since January 5, 2015.
The Bank of Japan remains one of the few central banks in the world to maintain a dovish stance, while others have adopted a tightening policy of raising interest rates to fight inflation.
The European Central Bank was expected to take a hawkish stance on Thursday, with rate hikes starting in July, with traders pricing in a 75 basis point hike by September.
"The bulls want to see 50 (basis points of rate hikes), they might get 25," said Edward Moya, senior market analyst at Oanda in New York. "The expectation is that global bond yield levels, especially the overall Europe, there's probably more upside, which is why you're seeing some good moves now, but ultimately the market is locking in what (ECB President) Lagarde's message is at the press conference."
Currently, the euro has risen against the yen for 10 consecutive sessions, the longest winning streak in eight months.
EUR/USD rose 0.15% to 1.0715 on Wednesday. The euro was up 1.3 percent against the yen at 143.780 yen.
Investors will get a look at U.S. inflation on Friday through the May consumer price index (CPI) after the ECB's policy decision. Inflation is expected to rise 8.3% year-on-year, unchanged from April.
Stocks on Wall Street were lower in choppy trade, with the S&P 500 down more than 1% as 10-year U.S. Treasury yields climbed above 3% after a weak Treasury auction and inflation concerns persisted as oil prices hit fresh 13-week highs Fermentation.
The data is highly unlikely to change the Fed's current rate hike path. Traders have fully priced in a rate hike of at least 50 basis points, according to CME's FedWatch tool.
Japanese policymakers on Wednesday maintained their support for a weaker yen, saying it was a boon for the economy.
Sterling was last at $1.2534 against the dollar in New York, down 0.44% on the day. Political risks and fears of an economic slowdown weighed on the pound on Monday's confidence vote in British Prime Minister Boris Johnson.
The Russian army pushed the Ukrainian army back to the outskirts of Sever Donetsk, and the situation turned again
The governor of Ukraine's Luhansk region said that in the face of a fierce attack by Russian troops, Ukrainian troops withdrew to the outskirts of the eastern city of Severo-Donetsk, and the bloodiest battle in the Russian-Ukrainian war turned again. After a surprise announcement of a counterattack last week, Luhansk Oblast Governor Serhiy Gaidai said on Wednesday that large parts of the city were once again in Russian hands.
SEC Chairman Announces Proposals to Overhaul U.S. Stock Trading Rules Compete to ensure retail investors get the best deal prices. It marks the most significant overhaul of U.S. stock market rules in more than a decade, with the SEC likely to unveil a formal proposal this fall. Public comments will then be solicited, and finally the SEC will vote on whether to adopt it.
International Monetary Fund (IMF): U.S. inflation may remain above the Fed's target for a long time It will remain above the Fed's target for a long time, and the country is at risk of "unanchored" inflation expectations.
② White House spokesman Jean-Pierre said that the White House expects the next round of economic data will show that inflation is still high. Inflation data due this weekend could provide more evidence of high inflation, she said.
EXCLUSIVE: Russia does not sign oil supply deal with two Indian buyers as no oil to sell
Rosneft (Rosneft) is delaying signing new oil deals with two Indian state-owned refiners, three people familiar with the matter said crude oil supply deals, as the company has committed to selling to other customers. The inability to sign a new term supply agreement with Rosneft could prompt Indian refiners to turn to the spot market for more expensive oil. It also shows that Russia has managed to keep exporting oil despite mounting Western sanctions aimed at stifling Moscow's revenue.
IIF: Russian economy to shrink 15% this year
Russia's economy will shrink by 15% this year and 3% in 2023, the Institute of International Finance (IIF) said, as the hit from Western sanctions, the withdrawal of companies, a "brain drain" and a sharp drop in exports will dent the economic gains of the past 15 years. turned into nothing. The IIF said it did not expect a ceasefire in the war in the coming months, and that sanctions could be expanded and intensified.
OECD: UK economy to stagnate in 2023
Faced with high inflation, UK economy to stagnate in 2023, lagging behind peers , the government should consider easing tax increases or increasing spending. The OECD expects UK gross domestic product (GDP) to grow by 3.6% this year and 0.0% in 2023, the slowest growth forecast for any G20 country except Russia.
Man drives into crowd in Berlin , killing one teacher and injuring 14 students
A 29-year-old man drove into crowd in Berlin on Wednesday, killing a teacher and injuring 14 of her students, German officials said , the man's car swerved twice onto the sidewalk of a shopping area. "The latest evidence shows that this is a case of a psychopath out of control," Berlin Interior Minister Iris Spranger said.
14 killed in Peru gold mine conflict The report said that the conflicting gold mine is located more than 1,000 kilometers southeast of the Peruvian capital Lima, and the remoteness of the incident site has led to slow progress in the investigation. According to a preliminary investigation by the local police, the conflict was triggered by illegal gold mining gangs competing with legal miners for gold mining rights. Police have arrested 31 people and confiscated a batch of firearms and ammunition.
United Nations: Russian-Ukrainian conflict creates global cost crisis Residents around the world are facing a cost of living crisis that has not been experienced in a generation. Three months into the Russia-Ukraine conflict, price shocks to global food, energy and fertilizer markets are escalating. An estimated 1.6 billion people in 94 countries face at least one of these crisis situations, with about 1.2 billion people living in the most vulnerable countries, which are extremely vulnerable in all three sectors, food, energy and finance, the report said. UN Secretary-General Antonio Guterres has warned that vulnerable groups and countries have been hit hard, but no country is immune to the impact of the cost of living crisis.
In commodities closing, Brent crude futures rose $3.01, or 2.5%, to settle at $123.58 a barrel, while U.S. crude futures rose $2.70, or 2.3%, to settle at $122.11 a barrel. It was the highest close for Brent and U.S. crude since March 8, when crude futures posted their highest close since 2008. U.S. gold futures settled up 0.2 percent at $1,856.50 an ounce.
At the close of U.S. stocks, the Dow Jones Industrial Average fell 269.24 points, or 0.81%, to 32910.9; the S&P 500 fell 44.91 points, or 1.08%, to 4115.77; the Nasdaq fell 88.96 points, or 0.73%, to 12086.27 .
Thursday Forward
List of major global market conditions
U.S. stocks ended lower on Wednesday as U.S. Treasury yields rose above the psychologically important 3 percent mark and oil prices jumped, raising concerns about the outlook for inflation and interest rates.
Markets fell broadly, with the S&P 500 down more than 1 percent, snapping a two-day winning streak.
Intel Corp tumbled 5.3 percent, the biggest drag, after Citigroup cut its forecast for the chipmaker for the second time in a week. Citigroup pointed to uncertain demand for PCs and forecast the company could issue a warning of weaker-than-expected second-quarter earnings. Other chip stocks also fell.
Brent crude rose above $123 a barrel and hit a fresh 13-week high. The Dow Jones Transportation Index fell 3.8%, significantly underperforming other indexes. The S&P 500 energy <.SPNY> was the only sector to end the day higher.
"The 10-year U.S. Treasury yield is up more than 3 percent, and that's probably part of the reason we're seeing stocks fall today," said Robert Pavlik, senior portfolio manager at Dakota Wealth. Higher interest rates also reflect inflation and market volatility."
U.S. 10-year Treasury yields climbed after tepid demand for the 10-year Treasury note auctioned by the U.S. Treasury Department. Rising yields are often a negative for stocks.
As of the close, the Dow Jones Industrial Average fell 269.24 points, or 0.81%, to 32910.9; the S&P 500 fell 44.91 points, or 1.08%, to 4115.77; the Nasdaq dropped 88.96 points, or 0.73%, to 12086.27.
Investors were also cautious ahead of Friday morning's release of U.S. consumer price data. The report is expected to show inflation remained stubbornly high in May, but year-on-year increases in core consumer prices, which exclude volatile food and energy, are likely to ease.
The Fed is expected to raise rates by 50 basis points at both its June and July meetings, with a similar move likely in September in an effort to fight inflation.
precious metal
Gold edged higher on Wednesday, barely closing above the 1850 mark, as worries about economic growth boosted its safe-haven appeal ahead of U.S. inflation data that could provide guidance on the Fed's rate hike schedule , the bulls still have scruples.
U.S. gold futures settled up 0.2 percent at $1,856.50 an ounce.
"We're seeing this push-pull mentality in the gold market... The focus now will be on Friday's CPI data to see whether inflation is actually starting to ease a bit or continues to be hotter than expected," High Ridge Futures said David Meger, head of metals trading at .
Gold faces resistance from the Federal Reserve, which now appears committed to fighting soaring inflation, Meger said.
U.S. Treasury Secretary Janet Yellen said the current 8 percent annual rate of inflation is "unacceptable" for the U.S. and that a 2 percent inflation target is an "appropriate target" for the Fed.
Although seen as a hedge against inflation, gold is sensitive to interest rate hikes, which increase the opportunity cost of holding non-yielding gold and silver.
Gold edged higher despite higher U.S. Treasury yields and a relatively strong dollar.
On the physical front, however, consultancy Metals Focus said demand for gold will decline this year due to weak jewellery sales and retail investment in China due to the coronavirus lockdown and economic slowdown.
crude
Oil prices jumped more than 2 percent on Wednesday to a 13-week high as U.S. demand for gasoline continued to rise despite record highs, while investors grew increasingly concerned amid expectations of higher demand for crude from China Supply from several countries, including Iran.
Iran said it was dismantling two surveillance cameras installed by the International Atomic Energy Agency (IAEA) at a uranium enrichment facility after the IAEA board passed a resolution criticizing Iran for failing to adequately explain traces of uranium at an undisclosed location.
The move has heightened tensions with the United States and other countries negotiating with Iran over its nuclear program, and could keep sanctions in place, keeping Iranian oil out of global markets for longer.
Analysts said the nuclear deal with Iran could increase global crude supplies by about 1 million barrels per day.
Brent crude futures rose $3.01, or 2.5%, to settle at $123.58 a barrel on Wednesday, while U.S. crude futures rose $2.70, or 2.3%, to settle at $122.11 a barrel.
It was the highest close for Brent and U.S. crude since March 8, when crude futures posted their highest close since 2008.
The U.S. Energy Information Administration (EIA) said U.S. commercial crude inventories unexpectedly rose last week, while crude stockpiles in the Strategic Petroleum Reserve fell at a record pace as refinery runs rose to their highest level since January 2020.
EIA crude inventories rose by 2 million barrels in the week to June 3 to 416.8 million barrels, compared with analysts' expectations for a decline of 1.9 million barrels. U.S. gasoline inventories fell 800,000 barrels last week to 218.2 million barrels, compared with analysts' expectations for an increase of 1.1 million barrels.
“The reduction in gasoline inventories was a bright spot in the report, and markets across the U.S. were tight,” said Tony Headrick, energy market analyst at CHS Hedges, noting that even with gas at the pump above $5 a gallon in many parts of the country, Demand remains strong.
The International Energy Agency (IEA) has warned that Europe could face energy shortages in the coming winter as it sanctioned Russia after it invaded Ukraine.
UAE Energy Minister Suhail bin Mohammed al-Mazroui said on Wednesday that efforts by OPEC+ oil producers to raise output were "not encouraging", noting that they were 2.6 million bpd short of their target.
foreign exchange
The dollar index rose 0.2% on Wednesday to near 102.55, reversing earlier losses as U.S. stocks fell, boosting the greenback's safe-haven appeal, while the euro strengthened ahead of the European Central Bank's policy announcement.
USD/JPY kept refreshing the highs of more than 20 years. It closed up 1.23% on Wednesday, and it still rose slightly on Thursday. As of 07:30, USD/JPY reached a maximum of 134.52, the highest level since February 27, 2002 at 2222 , the euro hit its highest level against the safe-haven yen since January 5, 2015.
The Bank of Japan remains one of the few central banks in the world to maintain a dovish stance, while others have adopted a tightening policy of raising interest rates to fight inflation.
The European Central Bank was expected to take a hawkish stance on Thursday, with rate hikes starting in July, with traders pricing in a 75 basis point hike by September.
"The bulls want to see 50 (basis points of rate hikes), they might get 25," said Edward Moya, senior market analyst at Oanda in New York. "The expectation is that global bond yield levels, especially the overall Europe, there's probably more upside, which is why you're seeing some good moves now, but ultimately the market is locking in what (ECB President) Lagarde's message is at the press conference."
Currently, the euro has risen against the yen for 10 consecutive sessions, the longest winning streak in eight months.
EUR/USD rose 0.15% to 1.0715 on Wednesday. The euro was up 1.3 percent against the yen at 143.780 yen.
Investors will get a look at U.S. inflation on Friday through the May consumer price index (CPI) after the ECB's policy decision. Inflation is expected to rise 8.3% year-on-year, unchanged from April.
Stocks on Wall Street were lower in choppy trade, with the S&P 500 down more than 1% as 10-year U.S. Treasury yields climbed above 3% after a weak Treasury auction and inflation concerns persisted as oil prices hit fresh 13-week highs Fermentation.
The data is highly unlikely to change the Fed's current rate hike path. Traders have fully priced in a rate hike of at least 50 basis points, according to CME's FedWatch tool.
Japanese policymakers on Wednesday maintained their support for a weaker yen, saying it was a boon for the economy.
Sterling was last at $1.2534 against the dollar in New York, down 0.44% on the day. Political risks and fears of an economic slowdown weighed on the pound on Monday's confidence vote in British Prime Minister Boris Johnson.
international news
The Russian army pushed the Ukrainian army back to the outskirts of Sever Donetsk, and the situation turned again
The governor of Ukraine's Luhansk region said that in the face of a fierce attack by Russian troops, Ukrainian troops withdrew to the outskirts of the eastern city of Severo-Donetsk, and the bloodiest battle in the Russian-Ukrainian war turned again. After a surprise announcement of a counterattack last week, Luhansk Oblast Governor Serhiy Gaidai said on Wednesday that large parts of the city were once again in Russian hands.
SEC Chairman Announces Proposals to Overhaul U.S. Stock Trading Rules Compete to ensure retail investors get the best deal prices. It marks the most significant overhaul of U.S. stock market rules in more than a decade, with the SEC likely to unveil a formal proposal this fall. Public comments will then be solicited, and finally the SEC will vote on whether to adopt it.
International Monetary Fund (IMF): U.S. inflation may remain above the Fed's target for a long time It will remain above the Fed's target for a long time, and the country is at risk of "unanchored" inflation expectations.
② White House spokesman Jean-Pierre said that the White House expects the next round of economic data will show that inflation is still high. Inflation data due this weekend could provide more evidence of high inflation, she said.
EXCLUSIVE: Russia does not sign oil supply deal with two Indian buyers as no oil to sell
Rosneft (Rosneft) is delaying signing new oil deals with two Indian state-owned refiners, three people familiar with the matter said crude oil supply deals, as the company has committed to selling to other customers. The inability to sign a new term supply agreement with Rosneft could prompt Indian refiners to turn to the spot market for more expensive oil. It also shows that Russia has managed to keep exporting oil despite mounting Western sanctions aimed at stifling Moscow's revenue.
IIF: Russian economy to shrink 15% this year
Russia's economy will shrink by 15% this year and 3% in 2023, the Institute of International Finance (IIF) said, as the hit from Western sanctions, the withdrawal of companies, a "brain drain" and a sharp drop in exports will dent the economic gains of the past 15 years. turned into nothing. The IIF said it did not expect a ceasefire in the war in the coming months, and that sanctions could be expanded and intensified.
OECD: UK economy to stagnate in 2023
Faced with high inflation, UK economy to stagnate in 2023, lagging behind peers , the government should consider easing tax increases or increasing spending. The OECD expects UK gross domestic product (GDP) to grow by 3.6% this year and 0.0% in 2023, the slowest growth forecast for any G20 country except Russia.
Man drives into crowd in Berlin , killing one teacher and injuring 14 students
A 29-year-old man drove into crowd in Berlin on Wednesday, killing a teacher and injuring 14 of her students, German officials said , the man's car swerved twice onto the sidewalk of a shopping area. "The latest evidence shows that this is a case of a psychopath out of control," Berlin Interior Minister Iris Spranger said.
14 killed in Peru gold mine conflict The report said that the conflicting gold mine is located more than 1,000 kilometers southeast of the Peruvian capital Lima, and the remoteness of the incident site has led to slow progress in the investigation. According to a preliminary investigation by the local police, the conflict was triggered by illegal gold mining gangs competing with legal miners for gold mining rights. Police have arrested 31 people and confiscated a batch of firearms and ammunition.
United Nations: Russian-Ukrainian conflict creates global cost crisis Residents around the world are facing a cost of living crisis that has not been experienced in a generation. Three months into the Russia-Ukraine conflict, price shocks to global food, energy and fertilizer markets are escalating. An estimated 1.6 billion people in 94 countries face at least one of these crisis situations, with about 1.2 billion people living in the most vulnerable countries, which are extremely vulnerable in all three sectors, food, energy and finance, the report said. UN Secretary-General Antonio Guterres has warned that vulnerable groups and countries have been hit hard, but no country is immune to the impact of the cost of living crisis.
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