Oil retreats on dollar strength

2023-05-04
Summary:

The dollar gained with Treasury yields as investors digested Friday’s data and waited for the Fed’s decision due on Wednesday as well as key upcoming economic data.

The dollar gained with Treasury yields as investors digested Friday’s data and waited for the Fed’s decision due on Wednesday as well as key upcoming economic data.


U.S. manufacturing pulled off of a 3-year low in April, and construction spending increased more than expected in March.


Wall St indexes closed slightly lower, barely affected by JP Morgan’s acquisition of First Republic Bank’s most assets.


Commodities

Weak data from China was also in focus with PMI declining to 49.2 from 51.9 in March, below 50-point mark for the first time since December 2022.


WTI settled down 1.46% at &75.66 and Brent ended at &79.31, down 1.3% on the day. Oil prices rose by 2% on Friday boosted by Big Oil’s earnings. ExxonMobil's profits hit record high and more than doubled in the first three months of this year.


The Fed is set to raise rates again this week. Oil’s strong rally came to an end as the dollar steadied and economic outlook remains weak.

XNGUSD

Forex

The dollar edged higher, on track for third straight daily gain, against the yen after the BoJ kept its ultra-dovish policy.


ISM Manufacturing PMI edged higher to 47.1 from 46.3 as new orders improved slightly and employment rebounded, but activity remained subdued.


‘The higher the Fed has to increase interest rates and the longer they have to keep them there, we increase the risk of a recession and the risk of a deeper and longer-lasting recession,’ said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management.

Gold and silver buoyant despite recent retreat

Gold and silver buoyant despite recent retreat

Gold and silver prices fell Thursday amid inflation concerns. Despite recent declines, analysts foresee their strengthening in the coming year.

2024-05-30
UK Stock Market at High Stake on Wednesday

UK Stock Market at High Stake on Wednesday

The FTSE 100 Index tumbled Tuesday as bids for two major companies neared a deadline. Foreign investors are snapping up discounted stocks.

2024-05-29
Investors Increasingly Bullish on US Equities Before Holiday

Investors Increasingly Bullish on US Equities Before Holiday

Asian stocks are flat Tuesday, awaiting global inflation data. Wall Street closed for Memorial Day. Investors are buying on cooling inflation signs.

2024-05-28