Stock markets are once again under pressure from recessionary sentiment. Saudi Arabia is ready to pump more oil

The Bank of Canada took another aggressive step in its rate hike cycle, raising the overnight interest rate by 50 basis points for the second time in a row and warning that it could use even more “strong measures” to fight inflation if necessary. The minutes also said Russia’s invasion of Ukraine, China’s COVID lockdown, and continued supply disruptions put pressure on activity and rising inflation. The war has increased uncertainty and puts further upward pressure on energy and agricultural commodity prices.

Crude oil prices returned to positive territory on Wednesday as OPEC delegates did not discuss the possibility of excluding Russia from the global oil production agreement, as had been suggested a day earlier. But in the Asian session, oil prices fell sharply again after reports of Saudi Arabia’s intention to increase production in a sharp drop in Russian production.

The US 10-year Treasury bond yields jumped by 3% yesterday after the Federal Reserve launched its plan to reduce its balance sheet by nearly $9 trillion. And most interestingly, gold prices also jumped, though these instruments are usually inversely correlated.

Asian markets traded without a single dynamic yesterday. Japan’s Nikkei 225 (JP225) gained 0.65%, Hong Kong’s Hang Seng (HK50) lost 0.56%, and Australia’s S&P/ASX 200 (AU200) was up 0.32%. According to analysts, Asian markets decline because of high inflation as well as recession fears.

S&P 500 (F) (US500) 4,119.56 -12.59 (-0.30%)

Dow Jones (US30) 32,938.26 -51.86 (-0.16%)

DAX (DE40) 14,340.47 -47.88 (-0.33%)

FTSE 100 (UK100) 7,532.95 -74.71 (-0.98%)

USD Index 102.50 +0.75 (+0.74%)

News feed for: 2023.07.04

Australia Retail Sales (m/m) at 04:30 (GMT+3);
Switzerland Consumer Price Index at 09:30 (m/m) (GMT+3);
OPEC+ Meeting at 13:00 (GMT+3);
US ADP Nonfarm Employment Change (m/m) at 15:15 (GMT+3);
US Initial Jobless Claims (w/w) at 15:30 (GMT+3);
US Natural Gas Storage (w/w) at 17:30 (GMT+3);
US Crude Oil Reserves (w/w) at 18:00 (GMT+3);
US FOMC Member Mester Speaks at 20:00 (GMT+3).

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.