negative trend in Asia; Oil is climbing, the dollar is strengthening slightly

negative trend in Asia; Oil is climbing, the dollar is strengthening slightly
negative trend in Asia; Oil is climbing, the dollar is strengthening slightly

Trade overview: current reports, trends, indices, stock prices, bonds, foreign exchange and commodities and analyst recommendations

08:30

In the crypto trading arena, Bitcoin fell by about 5% to a price of $18,770 and Ethereum retreated by 5.5% to $1,305.

07:50

Asian stock markets are trading in a negative trend today, at the start of the global trade week. In Hong Kong, the Hang Seng index registered a decrease of about 1%, in Shanghai there were slight decreases and in Tokyo there was no trading today.

The contracts on US stock market indices are trading with slight declines.

No important global macro data is expected to be published today. Investors’ eyes are on the Federal Reserve, which will publish its interest rate decision on Wednesday at 21:00 Israel time. After the disappointing inflation data published last Tuesday in the US, the market is pricing in a 74% chance of an interest rate increase of 75 percentage points and a 26% chance of an even sharper increase of a full percentage point.

On Thursday, the interest rate decision will also be published in Great Britain, which was postponed a week due to the death of Queen Elizabeth. Analysts predict a 0.5% increase, this is the second month in a row.

In the commodity trading sector, increases of about 0.7% are recorded in oil contracts. Gold drops by about 0.4% to a price of $1,676 per ounce.

The dollar strengthens at rates of up to 0.2% against the euro, the yen and the pound sterling.

Global X economists point out ahead of the Fed’s announcement on Wednesday that “the Fed and the markets will focus their attention in the near term on the core index in the US, which embodies more persistent inflation, which will gradually be more difficult to eradicate in the short term. As long as no improvement is seen in the core index, the Fed will choose to implement a more rigid monetary policy with the aim of cooling demand, with the aim of returning inflation to the target area of ​​2%, which we believe is not possible in the near term. The fear is that the Federal Bank is raising interest rates while the economy continues to weaken, even if this is not yet reflected in the data. This concern was behind the sharp drop in goals we saw last week.”

“The dollar exchange rate also plays a role in the inflation situation. The increase in the dollar index may help in the recession of inflation, since a strong dollar takes the inflationary pressures outside the United States, to its trading partners, and these financial conditions help the Fed in the fight against inflation.”

The article is Hebrew

Tags: negative trend Asia Oil climbing dollar strengthening slightly

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