risk appetite
Panic prevailed in various commodity, currency and stock markets this morning, with the increase in pessimistic analyzes of economic experts about the global economic situation, and continued expectations of the arrival of a strong inflationary recession, which was reflected in risk appetite During today’s trading strongly.
One of the economic reports issued by the French bank Natixis indicated that the worst-case scenario facing central banks now is slack Inflationary resulting from scarcity, and when the economic recession is caused by the scarcity of goods and supply problems, there will be no possibility to reduce inflation, on the contrary, as this will be accompanied by a sharp rise in commodity prices, which negatively affects the appetite risk for investors today.
On the other hand, Nomura Holdings Inc.’s memorandum made it clear that it expects it to be prolonged Economic recession Eurozone, United Kingdom, Japan, South Korea, Australia, Canada and the United States amid tightening monetary policies and rising inflation, which will push the global economy into a simultaneous economic recession.
Therefore, traders are reluctant to take risks, which causes Decreased appetite for risk Today, the demand for the US dollar is exceptionally high as a safe haven in such economic conditions.
U.S. dollar
The US dollar index DXY is currently hovering at the level of 106.319 points, a huge increase of 1.12%, in conjunction with strong declines in the US Treasury bond yields for ten years and thirty years, which reflects a state of pessimism about the state of the US economy in the coming years, and reduces risk appetite.
euro
The euro fell to a two-decade low in the foreign exchange market during Tuesday’s session, as the recent rise in European gas prices heightened fears of a recession, while the US dollar continued to extend its gains, after US Treasury yields saw a major rebound.
gold and oil
As for yellow gold, its prices continue to fluctuate throughout the day, with gold futures tending to rise due to a sharp drop in risk appetite, and spot gold prices tending to decline as a result of pressure from US interest rates on the precious metal.
As for black gold, global oil prices are down throughout the day, especially Brent crude, which was affected by recent expectations of its decline at the end of this year and the next, due to the deepening risks of economic recession.
Risk appetite today
At the end of the risk appetite report, it should be noted that the fear and greed index, which Measures the appetite for risk During the trading of the various markets, investors have recorded only 25 points today, or what expresses a state of extreme fear.