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Market News [Market Morning] Oil Prices Hit A 6-Month Low, Germany Denies That It Will Continue to Operate Nuclear Power Plants, And European Electricity And Gas Prices Soar Again

[Market Morning] Oil Prices Hit A 6-Month Low, Germany Denies That It Will Continue to Operate Nuclear Power Plants, And European Electricity And Gas Prices Soar Again

In early Asian trading on August 17, the U.S. dollar index traded around 106.50. Investors were waiting for U.S. retail sales data and the minutes of the Federal Reserve meeting to find new signals about the rate hike in September. Gold prices were weak; oil prices fell nearly 1% on Tuesday. , saw a big intraday tug of war, hitting a new half-year low of $85.71 per barrel at one point. Economic data raised concerns that the global economy may fall into recession. At the same time, the market is waiting for the Iran nuclear deal to be released, which may allow Iran to export more oil.

TOPONE Markets Analyst
2022-08-17
489

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On Tuesday, spot gold fluctuated downward, fell to the $1,770 mark during the session, and finally closed down 0.24% at $1,775.60 per ounce; spot silver fell with gold and closed down 0.65% at $20.14 per ounce.


Comment: Gold prices fell on Tuesday, and the dollar remained near a three-week high as investors waited for the Federal Reserve to release minutes from its last meeting to find the direction of interest rate hikes. The dollar remained near a three-week high set earlier in the session.


Suggestion: short Spot gold at 1774.60; the target point is 1765.50.


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After failing to challenge the 107 mark in the US market, the US dollar index pared back most of its previous gains and rebounded in late trading, and finally closed down 0.1% at 106.49; the 10-year US bond yield hit a daily high of 2.873% and then fell back, to close at 2.808%.


Comment: The dollar was little changed against a basket of currencies on Tuesday as investors awaited US retail sales data and minutes from the Federal Reserve's July meeting. The dollar rebounded from a six-week low hit last week as investors ramped up bets that the Federal Reserve will continue to raise interest rates aggressively as inflation simmers.


Suggestion: short EUR/USD at 1.01660, target point 1.00950.


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In terms of crude oil, the two oil companies were on a roller coaster ride. WTI crude oil rose by more than 3% during the session but failed to challenge the $90 mark many times, and then dived in the US market, falling by more than 2% for a time, and finally closed down 0.83% at 87.15 US dollar/barrel; Brent crude oil fell to a low of 91.69 US dollars, and finally closed down 0.97% at 92.52 US dollars/barrel.


Comment: Oil prices fell nearly 1 percent on Tuesday to their lowest since before the Russia-Ukraine conflict, as economic data sparked fears of a possible global recession and markets awaited the outcome of talks to revive a deal that could allow Iran to export more oil.


Suggestion: US crude oil is long at 86.640; the target point is 89.180.


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The Dow closed up 0.67%, the S&P 500 closed up 0.49%, and the Nasdaq closed up 0.19%. Retail and cruise concept stocks performed strongly, with hydrogen energy and solar energy sectors leading the decline. Walmart and Home Depot closed up 5.1% and 4%, respectively.


Comment: US stocks rose on Tuesday, the S&P 500 rose 0.19%, the consumer staples sector and the consumer discretionary sector led the gains with 1.21% and 1.09%, respectively, leading the US stocks to rise, and the real estate sector and the energy sector were 0.42 % and 0.34% losses led the decline.


Suggestion: Long Nasdaq index at 13634.400, target point 13762.040.


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EU responds to talks with the US on Iran nuclear talks.


EU spokeswoman Nabila Masrali said on the 16th that the EU had received Iran's response to the latest draft of the comprehensive agreement on the resumption of implementation of the Iran nuclear issue. While the EU assesses the Iranian response, it is consulting with other parties to the agreement and the United States. Mallari did not specify when the EU might respond. "I can only confirm now that the EU received a reply from Iran last night. The EU is reviewing (this reply) and negotiating follow-up matters with other parties to the Iran nuclear deal and the United States." The content of the Iranian reply was not made public. According to a report by the Islamic Republic of Iran News Agency on the 16th, Iran and the United States have differences on three issues. The United States has verbally accepted the two demands made by the Iranian side, and Iran insisted that they be included in the text.


A survey shows that 85% of US companies plan to freeze hiring, and 78% plan to lay off workers.


According to a survey conducted by freelance marketplace Fiverr International Ltd., about 78 percent of business owners said they are more likely to hire freelancers than full-time employees while the economic situation remains uncertain. The survey showed that 85% of US companies plan to freeze hiring, and 78% plan to lay off workers due to the uncertain economic outlook. In Fiverr's survey of more than 1,000 large and medium-sized business owners, more than 80% said they are currently hiring freelancers and that there is an increased demand for freelancers, especially by large businesses.


About 70% of the western US is in drought; the western megadrought is the worst in 1200 years.


According to a CNN report on August 16, local time, data from the U.S. Drought Monitoring Agency showed that as of the 11th, about 70% of the western United States was in a state of drought, of which nearly 300,000 square miles of land were considered to be "in a state of drought." Extreme" or "abnormal" drought is also the most severe category of drought. According to the data, the drought has caused serious crop losses and water shortages. Scientists point out that the current megadrought situation in the western United States is the worst in 1,200 years, in which the human-caused climate crisis has exacerbated the current drought.

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