He dollar strengthens this Wednesday globally, while stock markets and market prices Petroleum and the gold They fall as the markets react to the caution shown by the large central banks, such as the Fed and the European, to a rapid drop in interest rates despite the expectations of financial investors.
The dollar was trading at a one-month high, a day after the governor of the United States Federal Reserve, Christopher Wallerstated that, although inflation is close to the 2% target, the entity should not rush to lower rates.
He European Central Bank (ECB) also spoke out on the matter. Investor bets on rate cuts are excessive and possibly counterproductive as they could curb monetary easing, the head of the Dutch central bank told CNBC on Wednesday. Klaas Knot.
The weak recovery of the economy in China completes the panorama that pushes up the dollar. The Chinese economy grew 5.2% in 2023, somewhat above the official target but below what analysts expected, with a deepening real estate crisis, growing deflationary risks and tepid demand clouding the outlook for this year.
He dollar indexwhich compares the greenback with a basket of six prominent currencies, was trading at a one-month high, at 103.58 units.
He dollar It appreciated 0.5%, to 147.90 yen, while the euro traded at 1.0865 dollars and the pound sterling rose slightly to 1.26460 dollars. For his part, the yuan It reached its lowest level in almost two months against its American counterpart.
The reaction in the world stock markets
The markets in Asia They plummeted almost 2%, reaching their lowest level in a month, while the Hong Kong stock index lost more than 3%. In Europestocks fell more than 1%, while US stock futures pointed to a weak opening of Wall Street later.
“Central bankers, whether at the Fed or the ECB, are saying it’s premature to talk about rate cuts yet,” said Justin Onuekwusi of investment firm St. James’s Place, to Reuters. “There is a narrative from central banks that rejects these expectations and is causing a lot of volatilitybut it only undoes what we saw in the last quarter, when the markets became too optimistic with the reductions.”
Oil falls despite tension in the Middle East
He Petroleum more than one fell dollar As a result of the weak economic growth of Chinathe world’s second largest consumer, raising concerns about future demand, while the strength of the dollar dampened investors’ risk appetite.
Even the current naval and air conflicts in the Red Sea have failed to sustain oil, despite growing concerns that tankers may have to pause or reroute, increasing shipping costs and slowing down deliveries, Reuters recalled.
At 10:55 GMT (07:55 local time), the Brent crude oil futures fell $1.44, or 1.85%, to $76.85 per barrel, while those of the West Texas Intermediate in the United States (WTI) down $1.47, or 2.03%, to $70.94.
Gold extends its decline
Gold prices continued to decline on Wednesday, hitting almost one-week lows, pressured by a stronger dollar. He spot gold fell 0.3%, to $2,021.59 per ounce. In the previous session it lost 1.3%, its largest daily drop since December 4, 2023. Meanwhile, the US gold futures They also lost 0.3% to $2,024.90.
A dollar stronger makes gold more expensive for buyers with other currencies, while high interest rates are also bearish for bullion, which does not yield interest.
Among other precious metals, cash money fell 0.6% to $22.76 an ounce, while platinum fell 0.7% to $888.37 and palladium fell 1.4% to $923.2.
Source: Ambito
