World Stocks Apply for Weekly Profits for First Time in 2022
World Stocks is aiming for the second week in a row in 2022. The sentiments, however, were largely cautious as markets assessed the economic risks of tightening the Federal Reserve and Russia’s war in Ukraine. Technology stocks were defeated in Hong Kong. Broader markets have emerged after U.S. regulators said recent media speculation about an imminent deal that would stop hundreds of Chinese companies from going public on U.S. stock exchanges was premature.
Although the global flash PMI data for March this week showed that the world economy is broadly resilient, Investors are increasingly valuing the economic outlook. Barclays, for example, cut its global economic growth forecast to 3.3% this week, While traders increased short bets.
Global bond markets were still one of the worst sales of recent memory, While market volatility meters gave heterogeneous signals. Nickel, the face of market volatility, rose 9% on Friday; After reaching the 15% daily trading limit in the previous two sessions. The F.X. strategist estimates that next week in Japan, at the end of the quarter and the end of the fiscal year, will have a clearer view of the bearish risk-bearing market assets and currencies and the prospect of an accelerated Fed tightening in May.
U.S. Treasury Ten Year Revenue Indicator; That led to a broad market selling of bonds, which remained at 2.34% on Friday. This week, it has reached a three-year high of more than $2.41%. Yields have increased by 75 bps in the last two weeks. Traders were trying to revise their expectations of a rate hike.
While the Treasury remained on course for one of the worst quarterly routes, at least since the early 1970s, The dollar took advantage of the differential history of interest rates when the Japanese yen briefly fell to 122 yen at the end of 2015. The broader dollar index breathed a sigh of relief on Friday; It was on the way to a slight weekly increase.
Markets expect an increase of up to 190 for the rest of the year, After rising by 25 bps in the U.S. last week. Investors have an 88% chance of raising the rate by 50 bps in March. President of the Federation of Chicago Charles Evans was the creator of the latest U.S. policy, Which noted on Thursday that the federation needs to raise interest rates “on time” this year. It will be harder to get rid of high inflation in 2023 until it is embedded in U.S. psychology and becomes equal.
Demand for haven assets, including gold and the Swiss franc, has remained stable. The war in Ukraine showed no signs of slowing down. Ukrainian troops occupy cities east of the capital Kyiv. At the same time, Russian forces trying to seize the city are pushing back their over-supply lines.
Spot gold rose $1,959 an ounce steadily during the day. Overnight, the three major U.S. stock indexes rose more than 1%. Investors have won shares of chipmakers and big-name brands; The fall in oil prices was supported.
The decline in oil continued on Friday. The U.S. and its allies were considering producing more oil from the warehouse in calm markets. The price of Brent crude oil fell to $117.78 a barrel. However, prices were still very high by historical standards.