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4 Global Market Updates- 4 July, 2022

In this article, we have covered the highlights of global market news about the Asia – Pacific marketsOil prices, Gold prices, and the European markets.
Asia – Pacific markets are unsettled as investors seek direction.

In anticipation of this week’s central bank announcements in Australia and Malaysia, Australian equities increased by more than 1% on Monday, while South Korean and Hong Kong markets declined.

The banking and retail sectors led a 1.26 percent increase in the S&P/ASX 200.
Markets in mainland China and Japan also increased.
The Topix index in Japan increased by over 1%, while the Nikkei 225 in Japan reduced previous advances to trade 0.54 percent higher.
The Shenzhen Component increased 0.9 percent, while the Shanghai Composite increased 0.14 percent in China.

Hong Kong and South Korea’s equities were lower.
The Hang Seng index fell as high as 1.8 percent in the opening hours of trading on Monday after being closed on Friday. Last time, it was down 0.59 percent.
From Monday, exchange-traded funds will be a part of the stock connect program that connects Hong Kong with the People’s Republic of China.

The Kospi in South Korea initially lacked direction and ended the day down 0.91 percent, while the Kosdaq was down 1.92 percent.
The most extensive MSCI index of equities traded in Asia-Pacific outside Japan fell by 0.13 percent.
Indonesia’s Jakarta Composite fell 2.54% in Southeast Asia.

Oil prices fall as recession worries persist, although tight supply limits losses.

Early on Monday in Asian trading, oil prices declined, wiping out gains from the previous session as concerns about a potential global recession weighed on the market. At the same time, supply was still tight due to decreased OPEC production, turmoil in Libya, and sanctions against Russia.

After rising 2.4 percent on Friday, Brent oil futures fell 35 cents, or 0.3 percent, to $111.28 a barrel at 00:16 GMT.
Similarly, after rising 2.5 percent on Friday, U.S. West Texas Intermediate (WTI) oil futures fell 32 cents, or 0.3 percent, to $108.11 a barrel.

Although the market has been affected by recession worries over the previous two weeks, supply issues continue to hold back further price declines.

Asia

According to Commonwealth Bank commodities expert Tobin Gorey, energy markets continue to be plagued with particular supply worries, making being short a nerve-wracking experience.

According to a Reuters poll, the Organization of the Petroleum Exporting Countries (OPECten )’s members produced 100,000 fewer barrels per day (BPD) in June than promised to boost production by approximately 275,000 BPD.

Saudi Arabia and other major producers saw rises, while Nigeria and Libya had decreased, and Libya’s rising political upheaval threatened to disrupt supplies further.

Gold prices go down as the value of the dollar rises.

As of 0101 GMT, spot gold was down 0.2% at $1,807.19 per ounce after falling to a five-month low of $1,783.50 on Friday. American gold futures decreased by 0.5% to $1,809.50.

After significantly contributing to the worst quarterly performance for bullion in more than a year, the dollar lingered around recent two-decade highs, making gold less appealing for purchasers holding foreign currencies.

Benchmark On Friday, U.S. 10-year Treasury rates fell to their lowest point in a month, boosting the price of non-yielding gold.

As a string of weak U.S. statistics highlighted adverse risks for this week’s June payrolls report, Asian stock markets opened warily on Monday. Meanwhile, the commotion about a potential recession still fueled a surge in government bonds.

India, the second-largest consumer of the precious metal, has increased its basic import tariff on gold to 12.5% from 7.5 percent, the government said on Friday. The move is an effort to reduce the trade imbalance and cool demand in the world’s second-largest commodity consumer.

As demand for physical gold remained poor last week, dealers in India offered hefty discounts, and the impending increase in import taxes is anticipated to dampen interest further. In contrast, China, the world’s largest consumer, saw activity steadily pick up after Covid-led controls were lifted.

The biggest gold-backed exchange-traded fund in the world, SPDR Gold Trust, reported that its holdings decreased 0.8 percent from Thursday to Friday, falling to 1,041.9 tonnes from 1,050.31 tonnes.

All federal offices in the United States, the stock and bond markets, and the Federal Reserve will be closed on Monday during Independence Day.

Spot silver declined 0.2 percent to $19.82 an ounce, platinum down 0.5 percent to $884.39, and palladium declined 0.6 percent to $1,948.50.

The new trading week is expected to begin well for the European markets.

Due to the United States’ Fourth of July vacation, Monday is anticipated to be a calmer day for global markets, with European equities projected to begin in the green.

According to information from IG, the FTSE index for the United Kingdom is expected to start the day 44 points higher at 7,200, the DAX index for Germany is expected to start the day 65 points higher at 12,865, the CAC 40 index for France is expected to start the day 37 points higher at 5,958, and the FTSE MIB index for Italy is expected to start the day 34 points higher at 21,281.

Following the conclusion of the first half of the year, which was marked by worries about inflation, the conflict in Ukraine, and the possibility of a worldwide recession, global markets are now settling into trade for the second half of the year.

There are indications that Asian markets are unsure about their path. As Asia-Pacific markets were divided on Monday ahead of this week’s central bank meetings in Australia and Malaysia, Hong Kong stocks declined overnight.

As U.S. markets will be closed on Monday in observance of the Fourth of July vacation, trade volumes are predicted to be much lower. After the S&P 500 ended its worst first-half performance in decades last Friday, U.S. equities increased at the beginning of the new quarter.

Apart from Spain’s most recent May producer price index data, there are no significant earnings or data announcements on Monday in Europe.

Please click here for the News Updates from July 2, 2022.

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