Conflicting clues for future rate hikes pinned down wall street, dollar and gold prices. Oil prices tumbled on global demand cut of opec+. Crypto attempted to rise.Updated time: 17 Nov, 2022, 12:09 (UTC+04:00)
Wall Street slumped while U.S bond yields rose since investors remained cautious to see whether the Fed will dial back tightening policies, especially when some of its officials persisted in saying that good news was “just one data point”. Stocks soaring in a sea of green and tumbling Treasury yields last week which drove MSCI’s gauge of stocks across the globe to its biggest weekly gain in two years proved to be short-lived as the S&P 500 ended up falling 0.9%, led by real estate and consumer discretionary shares’ decline. Dow Jones and Nasdaq also dropped 0.63% and 1.12%, respectively.
Despite U.S stocks’ tumble, futures traded 0.2%-0.4% higher. Ahead of the day, fresh producer price index data and comments from Fed’s officials on monetary policy would grasp the most attention.
Oil prices continued to slip as OPEC+ cut its 2022 global demand for the fifth time resulting from global economic gloom. Adding to the concern was a rise in the number of COVID-19 cases in China that clouded the outlook for fuel consumption. Brent crude futures lost 0.4% to $92.75 while U.S WTI crude futures dropped 0.7% to $85.31.
Gold prices hovered near three-month highs as conflicting signals over the Fed’s future interest rate sent the dollar down to recent lows. Spot gold fell 0.1% to $1,768.72 while gold futures lost 0.3% to $7,771.90.
Dollar retreated but still firmed to beat against other majors, giving its index a rising path to 107.00. The greenback broadly edged up against yen 0.34% to 140.40 while sterling further lost 0.08% to $1.1750. The euro and Chinese yuan remained unchanged at $1.03215 and $7.0461. The Aussie eased 0.13% to $0.66935.
Battered but unbowed by FTX fallout, major cryptocurrencies surged to ride into green. Bitcoin recently steadied at about $16,600, up nearly 2% over the past 24 hours. Ethereum was recently changing hands at about $1,200, up roughly 3%.