The sharp increase in Delta cases worldwide is negatively affecting the global economic recovery
The gold situation remains unchanged. Now it is important to know when the Fed will start cutting the QE program. Reducing the Fed’s debt purchases will raise US government bond yields, which will lead to a sharp drop in gold. But as long as the monetary policy remains unchanged, gold and silver prices will rise.
Oil prices fell to a 3-month minimum. The sharp increase in Delta cases around the world is worsening the outlook for global fuel demand.
The People’s Bank of China (PBOC) kept the loan prime rate (LPR) unchanged. China aims to build modern socialism in the country. At a meeting on financial and economic issues, Chinese President Xi Jinping said that excessive income should be combated and called on citizens and companies with high incomes to give back more to society for the prosperity of all. Amid the news, Hong Kong’s index fell by 2.28% to a low this year, while China’s blue chips decreased by 2.4%. In July, Japan’s consumer price index fell by 0.3% on a year-on-year basis. It didn’t meet the forecasts of economists, who had expected a 0.5% decline. The core consumer price index, which excludes changes in food and fuel prices, fell by 0.2% on a year-on-year basis, beating economists’ expectations. The coronavirus continues to constrain economic activity in most cities across the country. Seven more prefectures are under a state of emergency. Analysts believe the quarantine will hit the already weak household incomes. Japan’s Nikkei index decreased by 0.87% to a seven-month low. Quarantine restrictions in Sydney were extended for another month.
S&P 500 (F) 4,405.80 +5.53 (+0.13%)
Dow Jones 34,894.12 −66.57 (−0.19%)
DAX 15,765.81 −200.16 (−1.25%)
FTSE 100 7,058.86 −110.46 (−1.54%)
USD Index 93.56 +0.42 (+0.45%)
News feed for: 2023.07.04
- Japan National Core Consumer Price Index (m/m) at 02:30 (GMT+3);
- China PBoC Loan Prime Rate (m/m) at 04:30 (GMT+3);
- UK Retail Sales (m/m) at 09:00 (GMT+3);
- Canada Retail Sales (m/m) at 15:30 (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.
