Markets in a week .. gains for oil and gold and losses for the dollar
Oil and gold prices tend to achieve weekly gains with the close of trading today, Friday, while the dollar index fell 0.2% during trading, heading to record its first weekly loss since last January.
What about the developments in the financial markets today and over the course of the week?
Oil prices fell in early trading today, Friday, but are heading for a weekly gain of about 2%, as the recovery of factory activity in China offset the impact of escalating concerns about the increase in US crude stocks and the possibility of raising interest rates in Europe.
By 01:47 GMT, the price of a barrel of Brent crude futures contract fell 39 cents, or 0.5%, to $84.36. US West Texas Intermediate crude futures fell 41 cents, or 0.5%, to $77.75, according to Archyde.com data.
Then, by 09:36 GMT, Brent contracts rose 4 cents, or 0.05%, to $ 84.79, and West Texas crude futures rose two cents, or 0.03%, to $ 78.18. Brent crude is up about 1.9% since the beginning of the week, while WTI is set to rise 2.4%.
China’s manufacturing activity grew last month at the fastest pace in more than a decade, reinforcing expectations of a recovery in the world’s second-largest economy after the abolition of strict anti-Covid-19 restrictions, while China’s seaborne imports of Russian oil are expected to hit a record high this month with Refineries benefit from lower prices.
Comments from Atlanta Federal Reserve Chairman Rafael Bostick, saying the US central bank should continue to raise interest rates by a “steady” quarter-point increase, calmed concerns in the United States and helped support oil prices on Thursday even after unemployment data. strobe.
However, the market remains wary of a faster-than-expected rise in consumer prices in France, Spain and Germany, which reinforces expectations of further rate hikes by the European Central Bank. Inflation in the eurozone rose to a higher-than-expected annual rate of 8.5% in February, according to a preliminary estimate from the European Union’s statistics agency.
Increases for the tenth consecutive week in US crude oil inventories also weighed on the market this week.
The largest weekly increase in gold since mid-January 2023
In the precious metals market, gold prices rose today, Friday, apparently destined to record the largest weekly increase since mid-January with the decline of the dollar, while dealers assess the prospects that the Federal Reserve (US Central Bank) will continue to raise interest rates.
And by 05:50 GMT, the price of an ounce of gold in spot transactions increased 0.2% to 1839.39 dollars, up about 1.6% during the week so far. US gold futures rose 0.2% to $1,844.8.
And lead to raising interest rates in order to curb inflation to the reluctance of investors to pump money in non-return assets such as gold. The dollar index fell 0.2%, heading for its first weekly loss since January, making the yellow metal less expensive for buyers of other currencies.
Silver in spot transactions increased 0.5% to $21 an ounce, platinum rose 0.4% to $963.90, and palladium rose 0.4%, recording $1,454.99. It is expected that the three metals will record weekly gains, especially platinum, which is heading to record the best week since November.
The highest level of the Japanese stock index in 3 months
In the stock market, European indices opened higher today, supported by the rise of the technology sector, which is vulnerable to interest movements, with investors’ appetite for high-risk assets, after statements by a Federal Reserve official about the possibility that the US central bank will temporarily stop tightening monetary policy.
The Stoxx 600 index of European shares rose 0.5% at the start of trading, with the sub-index for the technology sector rising 1.3%. The mining sector index rose 1.3%, amid expectations that the lifting of restrictions related to Corona in China would lead to an increase in demand, after data showed improvement in economic conditions in the country.
Lufthansa shares jumped 4.4%, after the German airline turned profitable in 2022, supported by a strong rise in demand for air travel.
In Tokyo, the Nikkei Japanese stock index closed at its highest level in about 3 months today, Friday, after US stocks ended trading higher overnight. The Nikkei rose 1.56% to close at 27,927.47 points, its highest level since December 15 and its biggest daily gain since January 18. The index rose 1.73% this week. The broader Topix index rose 1.25% to 2019.52, bringing its gains to 1.57% this week.
US stocks rose on Thursday, as Treasury yields retreated from earlier highs, following comments from Atlanta Federal Reserve President Rafael Bostick about the central bank’s rate hike path.
The Standard & Poor’s 500 index closed up 29.9 points, equivalent to 0.76%, to 3981.29 points yesterday, while the Nasdaq Composite Index rose 83.43 points, or 0.73%, to 11462.92 points, and the Dow Jones Industrial Average increased 346.57 points, or 1.06%, to 33008.41 points.