prices were testing their highs this week at the psychological level of $75 per
barrel. The strong upward trend is still present despite recent corrections and
there could be many reasons for that. The pandemic is gradually fading, causing
business activity to recover worldwide, and consequently the demand for “black
gold” to increase.
to the recent forecast of the International Energy Agency the global demand for
crude oil could top 96.7 million barrels per day in 2021, which is 5.7 million bpd above the 2020 level, when it
plunged by 8.
pan-European composite Euro Stoxx 50 index showed its maximum value for the
last 13 years on Tuesday, June 15, exceeding the landmark of 4,150 points for
the first time since the spring of 2008. This record has not yet been
replicated in the course of today's European session, but the stocks are still
near record highs. Financial and industrial sectors, and oil companies are
among the leaders of today's upside move.
of market events on Thursday seem to largely illustrate a possible disposition
of the U.S. Dollar and the Euro. First of all inflation in the United States
presented a 13 year record high as it jumped to 5.0% vs the forecasted 4.7%,
and the previous April figure of 4.2%.
surge in prices may have been a shock for investors some time ago, and led to
immediate strengthening of the Greenback amid swift actions from the Federal
Reserve (Fed) to tighten monetary policy.
World markets are mainly treading water ahead of the U.S.
inflation data due to be released this Thursday.
The expert community survey by media giants Bloomberg and Reuters is expecting
on average that the consumer price index (CPI) in May could reach as much as
4.7% year-on-year. If so, it may set the second record in a row for the last 13
years since the summer of 2008, when the U.S. CPI was at 5.6% at some
The previous indication of consumer prices for April showed
months gold has been seen to be acting like a counter-Dollar in the market.
Price movements of the yellow metal are strongly linked to the economic policy
of the U.S. Administration and market perception of the Greenback.
general upward trend in gold prices, that started in March 2020, remain intact.
Since then gold prices rose from $1680 per troy ounce to above $2100 per ounce.
Major central banks, including the Federal Reserve (Fed), have been conducting
ultra-loose monetary policy since spring 2020.
sideway movements in a rather tight price range seem to have become a zero-sum
game. But that is not the case, as both of the two major markets are still
deriving benefits and capitalising on their mutual competition.
manufacturing purchasing managers index (PMI) for the Eurozone, which is an
important indicator of the Old World's business activity, came out at 63.1
points yesterday. This is only two-tenths of a point below the April's record
preliminary estimate for April, which was later lowered to a value of 62.9
points after the follow-up revision.
Yuan is traditionally considered as an instrument authorities use to gain
advantages in international trade by constantly devaluing it. For years the
United States accused China for its currency market manipulations. It seems to
be startling that the Yuan has been strengthening for almost a year, from May
2020 until now. The USDCNH declined to 6.36, bringing the Chinese currency to three
like the People’s Bank of China went against its own convictions by allowing the
Yuan to constantly grow stronger.
early Asian hours, the Chinese Yuan performed at its maximum value against the
U.S. Dollar since June 2018. In both its mainland and offshore trading
sessions, USD/CNY and USD/CNH have shown their three-year lows near 6.3920 and
below 6.38, respectively. The onshore Renminbi remarkably rose through the key
levels that pushed state banks of China to intervene at the beginning of the
week. The latter circumstance may make any further big move of the exchange
rate more laboured and risky, but not impossible.
Markets seem to have quickly recovered in the second half of Thursday after the stress caused by surprising revelations in the minutes released from the latest meeting of the Federal Open Market Committee (FOMC). on Wednesday. The statements by the Federal Reserve (Fed) after the meeting on May 19 were solid it their position that ultra-soft monetary policy would remain in place until 2023 at least. But, FOMC minutes presented a slightly different picture as some of its members stated the opinion that the Fed should begin to reconsider the tapering of bond purchasing at some point.
are seen to be keeping sideway movements after last week's shake-up with a
happy-end style rebound. Both the U.S. and the European indexes tried their
best to build on the progress in the first half of the day on Tuesday, but
failed to break last Friday's peak levels and, therefore, they changed at least
an intraday sentiment to the slightly downside direction today.
on? Shares of many companies may not be ready to move smoothly up the
trajectory, similar to a straight line, without more noticeable dips on the