5 Global Market Updates- 29 June,2022

In this article, we have covered the highlights of global market news about the Oil prices pause, U.S. bond rates, declination of the Dollar, Hong Kong Hang Seng index, and dropping of Dow Jones.

Oil prices pause after a three-day surge.

Brent oil prices for August fell 61 cents, or 0.5 percent, to $117.37 a barrel, erasing an earlier gain, while U.S. West Texas Intermediate (WTI) crude futures were down 44 cents, or 0.4 percent, to $111.32 a barrel.

Hiroyuki Kikukawa, general manager of research at Nissan Securities, says, “oil prices will probably linger over $110 a barrel, particularly on fears of possible supply interruptions due to storms as the United States approaches the summer.”

Analysts also cautioned that political upheaval in Libya and Ecuador might further restrict supplies.

Oil prices
Johannes Eisele | Afp | Getty Images
Lower U.S. bond rates support higher gold prices.

Lower U.S. Treasury rates supported gold prices on Wednesday as the metal struggled to move outside of its range-bound trading.

By 0254 GMT, spot gold was up 0.1 percent, trading at $1,821.57 per ounce.

At $1,823.10, U.S. gold futures increased by 0.1 percent.

U.S. bond rates
Akos Stiller | Bloomberg | Getty Images
As U.S. rates fall amid recessionary threats, the dollar declines.

On Wednesday, the dollar lost ground versus most of its key rivals as falling U.S. rates dulled the currency’s luster.

The dollar index, which compares the dollar value to six other currencies, declined 0.08 percent to 104.39, giving up some of its 0.53 percent overnight gain driven mainly by the euro’s loss.

After falling to $1.05025 on Tuesday, the euro gained 0.11 percent to reach $1.05315, as European Central Bank (ECB) President Christine Lagarde provided no new information about the direction of European interest rates at the ECB’s annual symposium.

Declination of the Dollar
Thomas Trutschel | Photothek | Getty Images
Losses are led by the Hong Kong Hang Seng index, while consumer confidence in Japan and South Korea is declining.

Following Wall Street‘s poor performance on Tuesday, shares in the Asia-Pacific region declined on Wednesday.

According to a poll by the Bank of Korea, the consumer mood index for South Korea decreased and was 96.4 for June 2022, 6.2 points below the reading for May.

From its rigorous Covid rules that have been in place for more than two years, China reduced the foreign traveler quarantine time on Tuesday.

Hong Kong Hang Seng index
The Dow Jones drops by over 500 points as the bear market rebound fizzles.
Tuesday saw a decline in U.S. equities as the market failed to maintain its recovery from the lows of the bear market. This erased prior gains.

Blue-chip Dow Jones Industrial Average hit 30,946.99 after losing 491.27 points, or 1.56 percent. The Nasdaq Composite lagged, declining 3% to 11,181.54, and the S&P 500 fell 2.01% to 3,821.55.

The Dow was up as far as 446.83 points, or 1.4 percent, at one time. S&P 500 and Nasdaq saw gains of up to 1.2 and 1 percent, respectively. After the announcement of unimpressive economic data, the significant averages erased their gains.

The Conference Board said that the consumer confidence index dropped to 98.7, down from 103.2 in May and below the 100 Dow Jones projection. The disappointing statistics come as recession worries have grown recently as the Federal Reserve aggressively raises interest rates to battle rising inflation.

dropping of Dow Jones
S&P 500 bouncing off the lows

Following slight losses in the previous session, Wall Street was recovering. Although there doesn’t seem to be a clear trigger for a big comeback, investors are still looking for a market bottom and hope for last week’s bounce holds.

Please click here for the News Updates from June 28th June, 2022.