The US Federal Reserve officials Bullard and Waller had nothing new to say yesterday. The labor market remains resilient, monetary tightening is already affecting the economy, and expectations for economic growth - that was said many times before. To summarize, the US Fed remains hawkish. The minutes of the Fed's last meeting, released Wednesday, indicated another 75 basis point hike in July.
Initial US jobless claims rose to their highest level since January. Analysts continue to note that the labor market remains tight. The main focus of investors today will be Non-farm Payrolls data in the US. If the data is worse than expected, it could be a reason for the Fed to reconsider a rate hike down to 50 basis points in July.
US indices jumped yesterday thanks to a rebound in energy stocks on the back of rising oil prices. The Dow Jones (US30) added 1.12% at the close of trading, while the S&P 500 (US500) increased by 1.50%. The Technology Index NASDAQ (US100) gained 2.28% on Thursday. All three indices closed on the plus side at the end of the day.
Stock markets in Europe were mostly up yesterday. German DAX (DE30) gained 1.97%, French CAC 40 (FR40) jumped by 1.60%, Spanish IBEX 35 (ES35) gained 2.19%, British FTSE 100 (UK100) was up by 1.14%.
Deutsche Bank suggested that the euro could fall into the $0.95-0.97 range if Europe and the US are dragged into a deeper recession. The Eurozone's single currency has been steadily declining as recession fears are heightened amid growing uncertainty over energy supplies as Russia threatens to cut gas supplies to Germany further and the continent as a whole.
Boris Johnson has announced that he is stepping down as British prime minister. Traders and investors had already expected this step after dozens of high-ranking ministers resigned in recent days in protest against Johnson's leadership.
Hungary's national bank raised its key weekly deposit rate by 200 basis points to 9.75%, the highest level in a decade, to stem a weakening currency exacerbating an increasingly acute inflation problem. Core consumer prices in the country rose more than 12% from the beginning of the year through May, while food prices rose by 20% a year earlier.
Natural gas futures continue to rise as the EIA reports a smaller-than-expected increase in US inventories. The government said total working gas inventories in storage are 2.311 trillion cubic feet, down 261 billion cubic feet from a year ago and 322 billion cubic feet below the five-year average.
Oil prices soared again yesterday, with WTI climbing sharply above $100 amid rumors of a power outage in Texas that could lead to capacity cuts. Meanwhile, crude oil inventories data unexpectedly rose by 8.2 million barrels while forecasting a decline of 2.8 million barrels. There is still a supply shortage, so analysts think traders should not expect oil prices to fall too much.
Asian markets closed yesterday with a growth. Japan's Nikkei 225 (JP225) gained 1.47% yesterday, Hong Kong's Hang Seng (HK50) gained 0.26% on the day, and Australia's S&P/ASX 200 (AU200) was up by 0.81% on Thursday.
Terrible news came from Japan. During the speech of the former Japanese Prime Minister Shinzo Abe, there was an attack on the prime minister. According to preliminary information, Abe suffered a cardiac arrest from his injuries. Shinzo Abe is now in hospital, and his condition is unknown. There were also several other people. The suspect has been arrested.
S&P 500 (F) (US500) 3,902.62 +57.54 (+1.50%)
Dow Jones (US30) 31,384.55 +346.87 (+1.12%)
DAX (DE40) 12,843.22 +248.70 (+1.97%)
FTSE 100 (UK100) 7,189.08 +81.31 (+1.14%)
USD Index 107.09 0.00 (+0.00%)
- – Eurozone ECB President Lagarde Speaks at 14:55 (GMT+3);
- – US Nonfarm Payrolls (m/m) at 15:30 (GMT+3);
- – US Unemployment Rate (m/m) at 15:30 (GMT+3);
- – Canada Unemployment Rate (m/m) at 15:30 (GMT+3);
- – US FOMC Member Williams Speaks at 18:00 (GMT+3).
by , 2022.07.08
We advise you to get acquainted with the daily forecasts for the major currency pairs.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.
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