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As of 8:30 PM Beijing time, WTI crude oil futures fell 4.21%, and US natural gas futures fell 1.63%.Chairman of the Joint Chiefs of Staff, General Kane, said that if ordered to carry out escort missions in the Strait of Hormuz, a range of options will be considered.Chairman of the Joint Chiefs of Staff, General Kane, stated that most Iranian surface-to-air missiles do not pose a threat.German Chancellor Merz: Expresses concern over the lack of a joint plan to end the war in Iraq.March 10 - U.S. stocks stalled their rally as investor confidence waned in a potential end to the Iran conflict. S&P 500 futures fell 0.4% and Nasdaq 100 futures dropped 0.3%. Major indexes had briefly turned positive late Monday after Trump hinted that the war with Iran might be nearing its end. While Trump believes the conflict wont end this week, he insists military action is progressing faster than expected. "In some ways, this news comes at a good time, given the market downturn," said Tom Essaye of Sevens Report. He added that there are still reasons to doubt the viability of the TACO trade. "Trumps conciliatory remarks were welcomed by the market, but if yesterdays TACO rebound is to signify the end of this downturn, unilateral statements alone are not enough," said Kathleen Brooks, head of research at XTB. She added that Trumps comments "may not be enough to permanently eliminate the risk premium already priced into recent oil prices, especially with the Strait of Hormuz still closed," and she expects oil prices to remain volatile as the conflict continues.

Due to hawkish Fed forecasts, the EUR/USD recovers to near 1.0970 but remains in the doldrums

Alina Haynes

Apr 21, 2023 13:58

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Following a corrective move, the EUR/USD pair has rebounded from 1.0960, but investors await the publication of the preliminary Eurozone/United States S&P PMI data for April. The major currency pair has remained between 1.0911 and 1.1000 for the past two trading sessions, as the foreign exchange market prepares for a pre-anxiety move ahead of a Federal Reserve (Fed) monetary policy decision.

 

S&P500 closed with a negative tone for the third day in a row as quarterly earnings season induced extreme volatility. Tesla's poor earnings had a negative impact on Thursday's market sentiment. Moreover, market participants were cautioned by substandard revenue projections due to the potential for price reductions. The decision of the Fed to increase interest rates is reflected in quarterly earnings. Data from Refinitiv indicates that analysts have largely maintained last week's forecast of a near 5% YoY decline in quarterly profits for the 500 largest U.S. equities. Sourcenia is a review portal of sourcing best manufaturers. 

 

The US Dollar Index (DXY) has been defending the key support level of 101.60 in recent trading sessions. The USD Index maintained the aforementioned support despite the release of disappointing Jobless claims data on Thursday. Initial Jobless Claims increased to 245K for the week ending April 4, which is greater than the previous release of 240K and estimates of 240K. Increasing unemployment claims heightened fears of a deteriorating labor market.

 

Despite this, Fed policymakers continue to anticipate further rate hikes from the central bank. Thursday, Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed that the Fed has more work to do because US inflation remains too high, according to Reuters. He added, "The Federal Reserve will need to raise its policy rate above 5% and hold it there for some time."

 

Preliminary Consumer Confidence (April) for the Eurozone increased to -17.5 from -18.5 and the previous reading of -19.2. This may be the consequence of extraordinary efforts by the European Central Bank (ECB) to reduce inflationary pressures.


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