witnessed European stocks Sharp decline amid investor concerns about energy supply, spike in COVID-19 cases in China, and discovery of a new sub-mutant from Omicron, impacting commodity-related stocks.
Nord Stream 1, the largest single pipeline transporting Russian gas To Germany, maintenance work, and supplies are expected to stop for 10 days, but governments, markets and companies fear the extension of the suspension due to the war in Ukraine, which could disrupt the filling of storage warehouses in preparation for the winter.
The European “Stoxx 600” index stopped a three-day rally, declining by 1.1 percent, after recording its best weekly performance in seven weeks, while most major sectors in Europe declined, as the mining sector fell 3.5 percent, and luxury products, which come a large part of the demand. from China, by 2.8 percent.
Investors were also worried that the euro price was close to parity with dollarbecause of its impact on corporate profits during the second quarter.
Danske Bank shares fell 6.1 percent after the bank cut its full-year net profit forecast.
The dollar rises to its highest level against the yen
The dollar rose to a 24-year high against the yen, after results from Japan’s ruling conservative alliance indicated no change in loose monetary policies, and global growth concerns boosted the dollar as a safe haven on a broader scale.
The dollar rose to 137.28 yen, its highest level since late 1998, and then trimmed these gains slightly, rising 0.6 percent to 136.93. The dollar also rose against the euro, which fell 0.38 percent to $ 1.0144, heading again towards its lowest level in 20 years, which was recorded during trading on Friday, leaving the index up 0.4 percent at 107.3.
gold price drop
Gold fell with the stability of the dollar price to continue the pressure on demand for gold denominated in dollars.
The price of gold fell 0.1 percent to $ 1740.16 an ounce, and the US futures contract fell 0.2 percent to $ 1739.50, at a time when the stability of the dollar made foreign buyers stay away from gold.
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Gold fell for the fourth consecutive week on Friday (July 8), hurt by the dollar’s rise and bets on sharp interest rate hikes that are gaining strength after strong US jobs data.
Asian stocks started cautiously on Monday, as investors prepared for a US inflation report that could force another big hike in interest rates.
Drop in precious metals prices
As for other precious metals, the price of silver fell during spot transactions 0.2 percent to $ 19.27 an ounce, and platinum fell one percent to $ 887.89. And palladium fell 1.3 percent to $ 2153.50, after rising by about 10 percent.
Japanese index closes higher
The Japanese “Nikkei” index closed higher after the coalition government in Japan strengthened its majority in the upper house of parliament during elections, and closed at 1.11 percent to 26,812.30 points, after rising as much as two percent earlier in the session to its highest level since the 13th From June.
The broader “topix” index rose 1.44% to 1914.66 points, the “Toyota Motor” company, the car manufacturer, rose 1.94 percent, and the “Sony” group rose 2.11 percent, to support the “topix” index. The stock “Tokyo Electron” bucked the upward trend, falling 1.38 percent, affecting the “Nikkei” index.