© Archyde.com. How did the various developments affect risk appetite movements at the beginning of the week?
Arabictrader.com – Risk appetite declined significantly in the first sessions of this week, with the calmness of global markets due to the Easter holiday. Below we take a look at the most important developments in risk appetite towards a number of commodities and currencies:
Risk appetite and US stocks
The performance of futures contracts for US stock indices declined during today’s trading due to the decline in risk appetite, as the US employment data raised stock market fears that the US Federal Reserve will continue to raise interest rates at its next meeting in May, and its negative effects on the performance of US stocks, especially after it receded Market concerns about a possible US banking crisis.
Risk appetite and oil
The appetite for risk in oil trading has decreased significantly, driven by the recent developments in the oil market, which are the recent warnings of the International Monetary Fund about the US economy and the region, which reported a slowdown in economic activity in the US and the Eurozone due to the system of higher interest rates at an unprecedented pace, which will affect demand By the end of it.
Risk appetite and the US dollar
Risk appetite rebounded clearly on dollar trading today, supported by positive US labor market data, which revealed an increase in employment in the non-agricultural sector by 236 thousand jobs, better than market expectations that indicated an increase in the index by about 228 thousand jobs only.
This matter would reflect the strength of the performance of the US labor market in the past month, as well as the recovery in economic activity, which would provide strong support for the next steps of the US Federal Reserve regarding continuing its tightening approach and what would involve raising interest rates at the next May meeting, and then the demand for the dollar increased. American trades.
How were commodity and currency prices affected by risk appetite developments?
Risk Appetite and Oil: Spot prices decreased by approximately 0.65% to reach $84.60 a barrel, and US spot crude contracts declined to reach $79.78 a barrel, a decrease of about 0.72%.
Risk appetite and the US dollar: The US dollar rose by 0.40%, to settle near the level of 102.50 points.
Risk Appetite: Spot gold contracts decreased by 0.86% to approach the level of $1,990.80 an ounce, and it also fell by approximately 0.69% to reach the level of $2,012.45 an ounce.