2023-06-21 13:40:00
© Archyde.com How did risk appetite move ahead of Jerome Powell’s testimony?
Arabictrader.com – A strong risk aversion dominated the trading of various commodities and currencies, today, Wednesday, with the markets anticipating before the Banking Committee of the Upper Chamber of Congress, the Senate, at exactly 2:00 pm GMT, which will have a strong impact On the risk appetite of investors in future trades.
The following can address a number of important economic developments that affected risk appetite movements towards the most prominent commodities and currencies:
Risk appetite and stock markets
The weak appetite for risk in today’s trading led to a decline in the performance of global stock markets. With regard to the performance of European stocks, the European 600 index fell by 0.17%, to record 461.25 points, affected by the negative expectations issued by the German IFO Institute earlier in the day, which indicated the possibility that the largest economic power would be exposed. In an area of economic recession more severe than expected, which raised market concerns about the health and stability of economic activity in the euro area; This would negatively affect European stocks.
As for US stocks, US stock index futures declined significantly, in light of the uncertainty about Powell’s forthcoming speech and what it entails in expectations of future federal interest rates, and this in turn will clearly affect the performance of US stocks; Especially with the escalating stock market fears of the continuation of the US Fed’s tightening approach over the next two meetings.
Risk appetite and gold
Risk appetite towards a metal weakened strongly during trading, affected by the rebound in US bond yields, as the 10-year yield rose by 0.92% to reach 3.763 points, as US bonds seemed a better investment opportunity compared to the acquisition of gold from the point of view of investors.
Risk appetite and crude oil
Investor sentiment rebounded slightly during oil trades, with the markets optimistic about the demand for crude oil from the third largest global importer of crude oil; Indian Oil Minister Hardeep Singh Puri affirmed that his country is seeking to increase its oil imports from Iraq, which amounts to one million barrels of oil per day at the present time, bringing the total oil supplies to about one billion barrels, stressing that India will continue to be one of the largest centers of demand for oil. Energy resources globally, which positively affected risk appetite towards .
An appetite for risk and a husband
Demand declined strongly in today’s trading; As a result, the dollar-yen pair increased, recording about 142.09 points, with an increase of approximately 0.46%, as the Japanese yen sparked some points contained in the minutes of the Monetary Policy Committee meeting of the Bank of Japan issued today, which stated that the bank members agreed to continue the monetary easing cycle, which led to the rise of the dollar. yin at the end.
How were commodity and currency prices affected by risk appetite developments?
Risk Appetite and Gold: spot gold contracts declined, to record about $1,928.79 an ounce, a decrease of about 0.39%, and also, it declined at approximately the level of 1,940.65 points, a decrease of 0.36%.
Risk Appetite and Crude Oil: Spot crude rose marginally by 0.40% to $75.88 a barrel; And the spot contracts for US West Texas crude rose by a marginal rate, reaching 0.44%, recording about $ 71.06 a barrel.
1687355583
#risk #appetite #move #ahead #Jerome #Powells #testimony #Arab #Trader