[Market Morning] Biden Sells Another 20 Million Barrels of Strategic Oil Reserves, European Natural Gas Futures Closed Up 20%
In early Asian market trading on July 27, the U.S. dollar traded around 107.20. The International Monetary Fund lowered its global economic forecast, and economic recession worries intensified. The U.S. dollar reversed its decline on Tuesday; oil prices fell by more than 1% on Tuesday. Prepare to release another 20 million barrels of crude oil.

On Tuesday, the volatility of spot gold narrowed, waiting for the outcome of the Fed's decision on interest rates, and finally closed down 0.07% at US$1,717.66 per ounce; spot silver fluctuated within a narrow range and finally closed up 1.29% at US$18.65 per ounce.
Comment: Gold prices were stuck in a tight range on Tuesday as U.S. bond yields fell, offsetting a stronger dollar as investors turned their attention to the Federal Reserve’s two-day meeting as recession woes lingered. U.S. Treasury yields fell sharply and a looming gas supply crisis in Europe kept markets on alert for the risk of a global recession.
Suggestion: short spot gold at 1717.97, the target point is 1710.20
The U.S. dollar index rose all the way, breaking through the 107 mark, and finally closed up 0.695% at 107.24; the 10-year U.S. bond yield bottomed out and rebounded, finally closing at 2.803%.
Comment: The dollar rose against a basket of major currencies on Tuesday, shrugging off a three-session losing streak, as recession fears intensified, investors awaited a policy statement from the Federal Reserve and energy supply concerns weighed on the euro.
Suggestion: short position of EUR/USD 1.01290, target point 1.00580
In terms of crude oil, the difference between the two oil prices was nearly $10, the largest level since April 2020. WTI crude oil once approached $99, then fell above $95, and finally closed down 0.65% at $97.67 per barrel; Brent crude oil It closed down 0.34% at $104.53 per barrel; European natural gas futures closed up 20% at nearly $2,240 per thousand cubic meters.
Comment: Oil prices reversed early gains and closed lower on Tuesday, as investors worried about a drop in consumer confidence and prepared for another 20 million barrels of crude oil to be released from the U.S. Strategic Petroleum Reserve. Oil prices have rallied recently on the back of Russia's invasion of Ukraine and a recovery in demand from the pandemic.
Suggestion: short the US crude oil at 94.790, the target point is 91.420
The three major U.S. stock indexes closed down collectively, the Dow closed down 0.71%, and the Nasdaq closed down 1.87%. Retail stocks and large technology stocks dragged the broader market. Amazon closed down 5.23%, Microsoft closed down 2.68%, and Alphabet closed down 2.32%.
Comment: U.S. stocks ended sharply lower on Tuesday, as Walmart's profit warning weighed on retail stocks and unusually weak consumer confidence data added to concerns about spending. Retailer Walmart Inc tumbled 7.6 percent after it cut its full-year profit forecast late on Monday, citing soaring food and fuel prices and saying price cuts were needed to reduce inventory.
Suggestion: go short at the 12270.000 of the Nasdaq index, and the target point is 12059.900
World 'may soon teeter on the brink of recession', IMF warns
The International Monetary Fund lowered its forecast for global economic growth in 2022 to 3.2% and raised its global inflation forecast to 8.3%. The IMF believes that the risk of a recession is particularly acute in 2023, with growth in the U.S. and Europe falling to near-zero levels due to rising inflation and tighter financial conditions. In addition, the group's chief economist warned that the world "may soon be teetering on the brink of recession."
API crude oil inventories fell more than expected, and the strategic oil reserve released another 20 million barrels
The United States reported that API crude oil inventories fell by 4.037 million barrels last week, a decrease that exceeded market expectations. The White House said that in order to support supply and stabilize oil prices, an additional 20 million barrels of oil will be released from the Strategic Petroleum Reserve, and 1 million barrels per day will be released to the market. The spread between WTI and Brent on Tuesday widened to its widest since April 2020, at nearly $10 a barrel.
EU countries agree to cut gas use this winter, extend sanctions on Russia
EU countries have approved a reduced emergency plan to curb gas demand in Europe after a compromise was reached with some EU member states that have suffered further gas cuts from Russia. The energy consumption reduction proposal requires all EU countries to reduce their natural gas use by 15% from August this year to March next year on a voluntary basis. In addition, the European Union announced an extension of economic sanctions against Russia for 6 months.
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