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The Hang Seng Index and Hang Seng Tech Index both widened their losses to 1%.US President Trump: We will defend American values. We will support the US military and border guards.July 4: Despite Thursdays fall, gold prices are still expected to rise this week as investors consider the reduced likelihood of a Fed rate cut and lingering concerns about the outlook for global trade. Gold prices traded around $3,330 an ounce this week, up about 1.7%. The previous session closed down 0.9% as U.S. jobs data unexpectedly rose while the unemployment rate was lower than expected. The dollar rose along with U.S. Treasury yields, putting pressure on gold prices as traders exited their already insignificant bets on a rate cut at the Feds July meeting. So far this year, Fed policymakers have kept key interest rates unchanged, citing the potential for Trumps tariff policy to exacerbate inflationary pressures. Officials also pointed to the generally stable job market as supporting their view that they do not need to rush to cut interest rates.The Hang Seng Index in Hong Kong opened on July 4 (Friday) down 169.25 points, or 0.7%, to 23,900.69 points; the Hang Seng Technology Index opened on July 4 (Friday) down 39.38 points, or 0.75%, to 5,194.33 points; the CSI 300 Index opened on July 4 (Friday) down 62.96 points, or 0.73%, to 8,585.48 points; the H-share Index opened on July 4 (Friday) down 0.66 points, or 0.02%, to 4,096.8 points.When the Hong Kong stock market opened, the Hang Seng Index opened down 0.7%, and the Hang Seng Technology Index opened down 0.75%; Xpeng Motors (09868.HK) opened down nearly 2%. Its worlds first L3-level computing AI car, Xpeng G7, was recently launched.

Oil prices decline due to demand concerns; a Fed rate hike looms

Aria Thomas

Sep 21, 2022 10:28

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Wednesday oil prices declined as traders anticipated that a Federal Reserve interest rate hike would dampen oil consumption. Indications of a likely increase in U.S. gasoline stockpiles were also negative.


By 20:37 ET, Brent oil futures declined 0.6% to $90.37 per barrel and WTI futures declined 0.2% to $83.73 per barrel (00:37 GMT). Tuesday, both contracts dropped more than 1 percent.


On Wednesday, the Fed is poised to increase interest rates by at least 75 basis points. To combat inflation, the bank will hike interest rates for the eighth time this year.


The action will tighten monetary conditions in the United States, weighing on economic expansion and oil demand. High inflation and rising interest rates have a negative impact on the nation's oil consumption.


Dollar rose prior to the hike. A stronger dollar increases the cost of oil imports, hence decreasing global crude demand. A stronger dollar reduces crude demand in India and Indonesia.


The API statistics released on Tuesday suggested weak oil demand from U.S. consumers. Last week, the API reported that U.S. gasoline inventories increased by 3.2 million barrels.


Despite lowering gas prices, the estimate and data indicating a decline in U.S. vehicle traffic showed lackluster fuel consumption in the country.


Today's API statistics are a preview of the official EIA data. It is anticipated that gasoline inventories decreased by 0.4 million barrels last week.


Oil prices have declined significantly from their peaks during the Russia-Ukraine war due to expectations of a decline in demand. The continued depletion of the U.S. Strategic Petroleum Reserve has also contributed to price declines.


A harsh European winter could increase this year's heating oil use. As a result of U.S. sanctions on Russian oil, the supply should tighten, causing prices to rise.

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