18/05/2022
The Fed avoided raising interest rates by 75 basis points in Europe and the US yesterday
On Tuesday, spot gold was trading on the downside. After hitting a high of 1836.08 in Europe, it turned down and gave up all of the day's gains to close down 0.5% at $1814.67 / ounce. Spot silver maintained its gains, hitting as high as 21.91 before closing up 0.16 percent at $21.63 an ounce.
The dollar index fell from a 20-year high to a close 0.902% lower at 103.3. The yield on the 10-year Treasury note recovered to close at 2.995%.
International oil prices, the two oil shocks. WTI crude increased volatility during the session and ended slightly lower, down 0.12% at $113.58 / BBL. Brent crude ended up 1.03 percent at $112.17 a barrel. WTI crude futures settled higher than Brent for the first time since May 2020.
On the stock market, Powell's remarks did little to deter U.S. stocks from closing higher, with the S&P 500 gaining 2.02 percent to 4,088.85. The Nasdaq closed up 2.76 percent at 11984.52; The Dow Jones Industrial Average edged up 1.34 percent to 32654.59. Popular Chinese stocks did well, with Alibaba up 6.4%, JD.com up 4.2%, and Nio up more than 14.2%.
Major European stock indexes were mixed. The Euro Stoxx 50 index rose 1.52 percent to 3,741.51. Germany's DAX30 closed up 1.59% at 14,185.94; The FTSE 100 closed 0.72 percent higher at 7,518.35.
Hong Kong stocks opened higher, the Hang Seng index, sharply up 3.27% and 5.78% respectively. Division net stocks, auto stocks, Apple concept shares, and other plates strong performance.
A shares three indexes collective high open, afternoon shock up. By the end of the day, The Shanghai index rose 0.65 percent, the Shenzhen Component Index rose 1.23 percent, and the chinext index rose 1.62 percent. On the disk, vehicles, energy metals, photovoltaic equipment, and other plates in the top; Commercial department stores, engineering construction, Traditional Chinese medicine, and other plates fell among the top. In the two cities, more than 1800 stocks rose. more than 70 stocks trading limit.
Cryptocurrencies rebounded slightly, with Bitcoin back above $30,000 a coin; Ethereum briefly hit the $2,100 mark, up more than 3% for the day.
Federal Reserve Chairman Jerome Powell said it was time for the Fed to keep a close eye on bringing inflation down, and no one should doubt the Fed's determination to fight inflation and raise interest rates above neutral if necessary.
Mr. Bullard, the Fed's most hawkish official, avoided a 75bp rise when asked whether the Fed was considering "more drastic action in the near term", citing our economy as performing well. He also expects the U.S. economy to "do well" this year and next.
ECB governing Board Nott said a 25 basis point rate hike in July is realistic and a 50 basis point rate hike is not ruled out if data in the coming months show inflation is on the rise. Eurozone money markets on Tuesday now expect the ECB to raise rates by around 105 basis points by the end of the year, compared with 95 basis points on Monday.
Rba minutes: A further rate hike may be needed, the RBA minutes show that members considered three options of raising the cash rate by 15 basis points, 25 basis points, or 40 basis points, with a unanimous preference for a 25 basis point hike. Members agreed that further increases in interest rates may be needed to ensure that Australia's inflation returns to target over time.
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