Aggressive FED policy forces investors to sell stocks

The Snap company forecast bright prospects for user growth on Thursday but said supply chain disruptions and high inflation could further dampen demand for advertising.

French President Emmanuel Macron gave an excellent performance in the televised debate against the right-wing candidate Marine Le Pen. The second round of presidential elections in France will be held this Sunday. Analysts predict the victory of the incumbent president.

The oil prices were falling in the previous sessions mainly because the IMF reduced the estimates of the global economic growth in 2022/23 and concerns about the growth of mortality from Covid in China, the second-biggest oil consumer in the world. But yesterday, oil prices started rising again as concerns about a possible European Union ban on Russian oil came to the fore.

The US oil company ExxonMobil is considering completely shutting down its operations in Russia by June 24. In March ExxonMobil announced plans to withdraw from the Sakhalin-1 project.

The looming rate hike also affected gold, which hit its lowest level in two weeks. Gold and silver are inversely correlated to the dollar index and especially to US Treasury bond yields. Therefore, when bond yields rise, gold and silver prices fall.

Asian stock markets traded flat yesterday. Japan’s Nikkei 225 (JP225) jumped by 1.23%, Hong Kong’s Hang Seng (HK50) fell by 1.25%, and Australia’s S P/ASX 200 (AU200) added 0.31%. Chinese stocks rebounded slightly yesterday, with blue chips recouping early losses and rising 1% on hopes for political support, but price pressure persists as a Shanghai lockdown holds back gains. The yuan has fallen to a seven-month low. Analysts at HSBC expect China to need a comprehensive easing package on all fronts, both monetary and fiscal, including easing measures in the real estate sector, which has been hit hard by restrictions on access to credit.

Australia’s business activity index (PMI) showed growth in both manufacturing and services sectors. Values are above the 56 mark. Anything above 50 is considered economic growth and stability.