Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations
Asian stock markets are trading today in a mixed trend: the Nikkei index in Tokyo is down about 0.4%, while the Hang Seng index is climbing about 0.3% in Hong Kong. The Kospi is up about 1.3% and Shanghai is stable.
Trading in futures contracts on US stock market indices is stable. This is after Wall Street closed last night a volatile day with nice gains, after the question-and-answer session with the participation of Fed Governor Jerome Powell (more on that later). The Nasdaq jumped by 1.9%, The S&P 500 rose 1.3% and the Dow Jones advanced 0.8%.
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In the commodities market, oil futures are now posting slight increases after yesterday’s sharp increases. The April contract for Brent oil traded around $83.7 per barrel; And the WTI crude oil contract is trading around $77.3 per barrel.
Gold traded with a slight increase to the level of 1,890 dollars.
In the global forex market, the dollar weakened slightly against the euro and traded around 1.073 dollars to the euro. The pound is also strengthening slightly and is trading around $1.205 per pound. The Japanese yen weakened by about 0.1% and traded around 131.2 yen to the dollar.
In the crypto arena, Bitcoin is trading in a slight increase around $23.2 thousand, and Ethereum also rises slightly to the level of $1,678.
Last night in New York, the US government’s 10-year bond yield advanced by 4 points to 3.67% and the two-year bond yield increased by a point to 4.46%. Now there are slight decreases in yields to 3.65% and 4.42% respectively.
As mentioned, the Chairman of the Federal Reserve, Jerome Powell, spoke yesterday (Tuesday) before the Economic Club of Washington about the economic outlook and monetary policy of the USA, in a conversation moderated by billionaire investor and philanthropist David Rubenstein. When asked about the next employment report, he said that “we don’t have the luxury of thinking about what is good and what is bad. It is what it is.” At the same time, Powell said the Fed does expect the labor market to soften. “Most economists would say that in order to lower inflation, we would need some softening of the labor market,” Powell said, but adds that this period was very different from the rest of history. “We expect significant progress in lowering inflation this year, and again, it’s our job to produce it,” Powell said. He adds that the Fed may have to raise interest rates more than markets are pricing in if employment reports continue to be unexpectedly strong and inflation climbs.
Today, the consumer price index in Russia will be published, which is expected to stand at 11.5% at an annual rate, alongside an unemployment figure that is estimated to rise from 3.7% to 4%. The weekly oil inventory in the US will also be published.