2023-09-15 14:11:03
Risk appetite
Risk appetite movements witnessed many economic developments as the end of the week’s trading approached. It contributed to enhancing investor sentiment to take risks in some markets over others. While risk appetite weakened in other markets, as follows: The most important developments witnessed in risk appetite towards the most prominent currencies and commodities can be clarified:
Risk appetite and global stock markets
Risk appetite movements varied significantly during global stock market transactions today. As for European stocks; The European Euro Stoxx 600 index rose by about 0.58% to 463.52 points; As the recovery of European stocks is still continuing due to the possibility of the European Central Bank halting the cycle of raising interest rates after the monetary policy decision issued yesterday, Thursday, calling for a final hike in the key interest rate and maintaining current interest levels for a period of time; This reflected positively on European stocks.
In complete contrast to the performance of US stocks; Risk appetite declined in US stock trading, as standard indices fell significantly with the outbreak of a strike by workers in the United States Automobile Industry Union against three of the largest automakers in the country, namely Ford Motors, General Motors, and Stellantis. With the possibility that economic growth in the United States for the third quarter will be affected by this strike; This clearly negatively affected the performance of US stocks today.
Risk appetite and crude oil
Risk appetite for crude oil futures trading has declined; Affected by concerns about the abundance of oil supplies in the markets, with the statements of the Turkish Energy Minister earlier today, which stated that the pipeline between Iraq and Turkey was ready to operate in the near term, which had a negative impact on crude oil prices in the end.
Risk appetite and the US dollar
US dollar trading was clearly affected today as a result of negative preliminary data on US consumer confidence for the month of September, as the index recorded about 67.7 points, while the markets expected it to record about 69 points for the same period. It was also lower than the previous reading for August, which recorded 69.5 points. This means a decline in consumer confidence in the United States regarding the country’s economic conditions, which has a negative impact on the dollar’s movements.
How were commodity and currency prices affected by developments in risk appetite?
Risk appetite and crude oil: The prices of spot Brent crude contracts decreased by about 0.72% to record $92.89 per barrel, in addition to the decline in the spot prices of West Texas Intermediate crude contracts by 0.72% to $89.45 per barrel.
Risk appetite and the US dollar: The US dollar index fell by approximately 0.20% to reach 105.13 points.
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