I continued European stocks It rose on Tuesday as investors await consumer price data Germanythe largest economy in the region to obtain indicators regarding inflation in the region euro.
The Stoxx 600 index of European shares rose 0.5 percent, supported by financial stocks and non-core consumer goods.
Investors will focus their attention on German CPI data released today, which may provide further indications as to whether cost pressures in the Eurozone have eased after the European Central Bank’s strong monetary tightening.
And European stocks ended the first trading sessions of this year, up 1.6 percent, Monday, after the data of the manufacturing sector in the euro zone showed that the worst phase had ended, with the start of the supply chain recovery and the receding of inflationary pressures.
The British “Financial Times 100” index rose 1.1 percent in its first trading session in 2023, as the British market had been closed since a brief session on Friday.
Gold jumps to the highest level
Gold prices hit a six-month high on Tuesday in thin trade, with the market’s attention shifting to the minutes of the US Federal Reserve’s latest monetary policy meeting due this week.
And gold rose in spot contracts 0.8 percent to 1838.69 dollars an ounce, and gold futures contracts in the United States increased by 1 percent to 1843.90 dollars.
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The dollar index fell 0.1 percent, making gold priced in the US currency more attractive to buyers abroad.
Minutes of the Federal Reserve’s December monetary policy meeting are due to be released on Wednesday, which could provide guidance on the bank’s tightening path.
Gold is considered a hedge against inflation and economic uncertainties, but high interest rates increase the opportunity cost of owning gold because it does not generate interest.
Spot silver rose 1.1 percent to $24.25, platinum rose 0.8 percent to $1,077.98, while palladium fell 0.1 percent to $1,792.21.
Strong rise of the yen
The yen jumped to a seven-month high against the dollar amid growing expectations that the Bank of Japan will reverse its ultra-loose monetary policy.
Speculation began that the Japanese central bank would change its policy after the bank raised the upper limit of the range of movement of government bond yields for ten years last month. Prices are close to its target of two percent in the 2023 and 2024 budgets.
The yen rose 0.69 percent against the dollar, to 129.83 yen per dollar, on Tuesday, after touching 129.51 earlier in the session, a level not reached since June.
The Asian currency lost 12 percent of its value against the dollar in 2022, and the Japanese authorities intervened in the market in September to support it for the first time since 1998 and then again in October when it fell to a 32-year low of 151.94 yen per dollar.
The yen achieved widespread gains on Tuesday, with the euro dropping 0.57 percent to 138.52 yen, and the pound sterling dropping 0.44 percent to 156.76 yen.
The dollar index, which measures the performance of the US currency against six major currencies, recorded a modest start to 2023 and was traded in the latest transactions, down 0.029 percent at 103.610, and the index rose eight percent in 2022, recording the largest annual jump since 2015 thanks to the Federal Reserve (central bank) hike. US interest rates to curb inflation.
The Australian dollar fell 0.06 percent to $0.680, while the New Zealand dollar increased 0.19 percent to $0.633. The euro was flat against the dollar, while the British pound rose 0.18 percent to $1.2067.