Investors once again fear a recession in the economy. The Monetary Policy Forum is coming to a close

The mood of investors and analysts changes almost every day. Yesterday, US stock indexes saw a new massive sell-off as gloomy consumer confidence data once again dampened investor optimism and heightened fears that the Federal Reserve’s aggressive fight against inflation will lead to a recession in the economy. The Conference Board’s Consumer Confidence Index fell to its lowest level since February 2021, and short-term expectations reached their most pessimistic level in nearly a decade.

Federal Reserve Bank of New York President John Williams told CNBC on Tuesday that interest rates should “definitely” be between 3% and 3.5% by the end of the year, but he does not expect a recession in the United States.

The ECB is expected to follow its colleagues from the Fed and raise interest rates in July to try to curb skyrocketing inflation. However, economists disagree on the extent of any rate hike. For now, a 0.25% move is being considered, but if Friday’s Eurozone inflation data show a new acceleration in inflation, policymakers may reconsider their decision to 0.5%.

Today at the monetary policy forum in Portugal, there will be the final speech of the heads of the central banks of the US, the ECB, and the UK. Investors and traders should pay attention to this performance.

Crude oil prices jumped another 2% on Tuesday as Saudi Arabia and the United Arab Emirates indicated they are near maximum production levels.

On the other hand, the leaders of the G7 countries reached an agreement to impose a price cap on Russian oil.

Lithuania has officially banned imports of Russian gas. The Seimas of the republic has adopted the appropriate amendments to the law on natural gas.

Gold futures fell in price yesterday. Gold and silver are inversely correlated to the dollar index and government bond yields. When the dollar rises, gold and silver tend to fall. And while the US Federal Reserve tightens monetary policy, there is no fundamental reason for increasing precious metal prices.

Asian markets were trading higher on Tuesday. Japan’s Nikkei 225 (JP225) gained 0.66% yesterday, Hong Kong’s Hang Seng (HK50) added 0.85% on the day, while Australia’s S&P/ASX 200 (AU200) was up 0.86%.

The head of the Bank of Japan said today that the Japanese economy had not suffered much from the global inflation trend so monetary policy will remain soft.

The Chinese yuan rose after China eased the quarantine related to the COVID-19 pandemic for international travelers. It also became known that China will cut retail prices on gasoline and diesel starting on Wednesday.