Happy Friday, traders. Welcome to our weekly market wrap, where we look back at these last five trading days with a focus on the market news, economic data and headlines that had the most impact on the financial market – and may continue to into the future for the US Dollar and other key correlated assets.
The week started with oil prices declining around 10%, after last week’s interest rates increase, along with the fear of investors for more riskier assets, while also the China lockdown continues, and the European embargo on Russian oil is still pending.
The drop continued also on Tuesday, with Crude oil closing the day at 98$ per barrel, after embargo stance from EU softened a bit, amid Hungary’s stance and concerns over the Russian Oil ban. Saudi Arabia announced also that they will reduce oil prices on for June, and along with the China covid lockdown, energy prices are now on a downtrend as stated by economists.
Early Wednesday, gold dropped to the lowest level since February, getting as low as 1832, with FED’s renewed battle against inflation, to have some impact on the precious metal.
European shares traded at a lower level on Wednesday, with DAX30 to be 1.8% lower, CAC40 2.1% down, and FTSE100 to be 1.4% lower. European investors are trying to also digest the US inflation data that was released on Wednesday, which showed rise at 8.3%, lower than last month at 8.5%, but higher than expected at 8.1%. Along with the European shares, US stocks were also down, with S&P500 to be 1.65% lower for the day, DOW 1.02% down, and NAS dropped 3.06%.
Thursday and early Friday, we saw Gold declining, touching the 1818 level, remaining on pressure from its “fiat friend” after the hotter than expected US inflation report.
Stocks on US had another ugly day, with S&P declining 0.13% more, Nasdaq dropped 0.18%, again, after recovering from its 2% loss.
Oil also was down during the week, in its way to close the first week after three weeks declining, as worries about inflation and China’s Covid lockdowns slowing global growth, decreasing fuel supplies from Russia.
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