Wall Street Returned In Green. Gold And Oil Prices Moved Little Awaiting The Fed’s Meeting. The Dollar Firmed Following Prospective Hawkish Policy. Crypto Regained.Updated time: 20 Sep, 2022, 13:16 (UTC+04:00)
Wall Street, especially Dow Jones showed green signs supported by dip-buying in tech and gains in industrials from a rally of Airline. The financial sector was propelled by rising bank stocks as a higher interest rates environment is anticipated to increase banks' net interest margins. Nasdaq and S&P 500 outperformed with more than 0.7% gains. Treasury yields jumped significantly as a result of a fully priced 75bps hike, besides attention to central banks’ hefty rate hikes this week. Asian shares followed the same rebound.
Oil and gold prices barely moved as traders held off on placing bets prior to the Fed meeting. U.S WTI crude futures dipped 0.3% to $85.09 while Brent oil futures settled 0.1% higher at $91.84 per barrel. Global demand saw skepticism as road travel in the U.S dropped 3.3% while SPR already released stocks. However, the situation would improve when China eases restrictions and Europe demands for winter’s heating oil.
Spot gold and gold futures prices increased by 0.2% and 0.6%, respectively after just plummeting below $1,700.
Dollar remained firm supported by the Fed’s more hawkish pivot, despite fears that such stronger levels would push the currency to peak and drop. The dollar index was little changed at 109.53. Meanwhile, Japan's CPI touched an 8-year high of 3%, together with the pandemic's effects demonstrated a potential bearish trend of the yen (it is currently at 143.13 only) and the USD/JPY. The euro and sterling were flat.
Major cryptos bounced back with Bitcoin’s tiny return at above $19,500, more than 6% higher than its low toward the close of Asian equity markets. Ethereum gained more than 3% than yesterday, at under $1,400, but still dropped to its lowest level since June.