Weak corporate activity
Data released on Wednesday also revealed a decline in US business activity and an increase in jobless claims as the economy slowed.
An indicator of the strength of the US dollar continued its decline on Thursday, continuing the downward trend for the third consecutive day, and European bonds rose as dealers reduced bets on an increase in interest rates by the European Central Bank, with Italian debt securities advancing in the forefront of the rise, which are papers that are particularly sensitive to an increase in interest rates. Risks.
Growing pessimism regarding the dollar dominates fund managers
At the same time, Bank of America said that its clients are buying bonds, fleeing the stock market, amid fears of Recession imminent. Bond investment funds attracted inflows for the 39th consecutive week, according to a note written by Michael Hartnett. Analysts favored holding bonds in the first half of 2023, expecting stocks to become more attractive in the last six months of next year.
For the third day in a row, gold prices rose due to the minutes of the Federal Reserve meeting, the precious metal was negatively affected by the monetary austerity policy pursued by the Federal Reserve to combat inflation, which pushed bond yields and the value of the dollar towards the rise on the one hand and led to the deterioration of gold prices by approximately 16% from its highest level in March.
