The dollar index is declining amid weak labor market data from ADP
Two major factors affected oil prices yesterday. On the one hand, OPEC+ countries agreed to support the current plan to gradually increase supply by 400,000 bpd, which plays in favor of lower oil prices. On the other hand, the US government report on crude oil reserves showed a larger-than-expected drop in inventories, which would push the price up as oil demand remains at a high level. As a result, the oil price fell during the US session, suggesting that the market is paying more attention to the OPEC+ agreement than to oil inventories.
Natural gas continues to set price records. Natural gas inventories reports are expected today. A drop in inventories could lead to even more growth, as the demand is now much higher than supply.
Gold prices haven’t changed much compared to the previous day. The fundamental picture for gold is now in favor of growth, as the soft monetary policy from the Federal Reserve leads to lower US Treasury bond yields, and gold has an inverse correlation to this indicator.
Asian stock indices are trading without a single dynamic. Asia-Pacific’s broadest index outside Japan, the MSCI, decreased by 0.2% from a five-week high. Japan’s Nikkei added 0.2%, and South Korea’s KOSPI lost 0.9%. Bank of Japan member Goushi Kataoka says that the Bank of Japan is ready to increase stimulus if a new wave of coronavirus affects the economic recovery. Japan should not lag behind other countries in supporting the economy with ultra-soft monetary policy.
S&P 500 (F) 4,524.09 +1.41 (+0.03%)
Dow Jones 35,312.53 −48.20 (−0.14%)
DAX 15,824.29 −10.80 (−0.07%)
FTSE 100 7,149.84 +30.14 (+0.42%)
USD Index 92.52 −0.11 (−0.11%)
News feed for: 2023.07.04
- US Initial Jobless Claims at 15:30 (GMT+3);
- US Natural Gas Storage (w/w) at 17:30 (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.
