The dollar index has strengthened against the background of good job openings statistics

John Williams, the representative of the US Federal Reserve Bank of New York, said that the labor market needs significant progress to achieve the maximum goal of the Central Bank. However, he added that it might be appropriate for the Federal Reserve to start cutting the QE program later this year if the economy continues to improve.

Eventually, it is becoming clear that growth in the US economy is slowing. There are plans to raise corporate taxes and reduce the quantitative easing program. Investors should not expect further stock market gains this year and should focus on closing positions and rebalancing their portfolios.

Today, the European Central Bank will publish its interest rate decision and announce further monetary policy plans. It is more likely that nothing will change, but amid high inflation in Europe, there are talks about possible stimulus cuts.

The US Department of Energy slightly lowered its forecast for the price of Brent crude oil for the current year from $68.71 to $68.61 per barrel. OPEC+ crude oil production increase and reduction of global oil demand in response to COVID-19 spread have a negative impact on the growth of quotes.

Against the backdrop of a rising dollar index and rising US Treasury bond yields, the price of gold and silver declined yesterday. Given the fact that the QE program is likely to be reduced this year, investors should not expect a significant increase in precious metal prices.

Japan is going to extend the state of emergency in Tokyo and other regions until the end of this month to curb the outbreak of the virus and prevent hospital overflow. Major Asian indices are still under pressure from the outbreak of the virus in the region and also because investors fear that major central banks will soon begin to cut the QE program, which will lead to a large correction in the markets. At the end of yesterday’s trading, Japan’s Nikkei 225 index decreased by  0.38%, Australia’s ASX 200 index lost 1.01%, Korea’s KOSPI decreased by 0.74%, and Hong Kong’s Hang Seng index fell by 1.17%, with tech companies declining the most.