Gold is rising  backed by declining bond yields and the US dollar  and a significant rebound in stock markets

2021-12-08T17:33:36
Asian indices gold Oil US indices
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Gold is rising  backed by declining bond yields and the US dollar  and a significant rebound in stock markets

Gold is rising  backed by declining bond yields and the US dollar  and a significant rebound in stock markets: Oil prices fall during Wednesday’s trading after rising in the previous session,
and traders are waiting to publish official data on US energy reserves and continue to monitor the situation as the new variant of coronavirus “Omicron” spreads.

Evest follows all this in the following report.

Topics:

Oil falls slightly despite declining US inventories

A big leap for US indices and Standard & Poor’s is close to its all-time high

US stocks rebound

Positive morale driving Asian indices towards the Green Zone

A weak dollar supports gold prices

 

Oil falls slightly despite declining US inventories

The August futures price for Brent oil in London Futures Exchange reached $75.22 per barrel, $0.22 (0.29%) lower than the closing price of the previous session. 

As a result of Tuesday’s trading, these futures rose by $ 2.36 (3.23%) to $75.44 per barrel.

The United States Department of Energy has lowered the price forecast for Brent crude in 2022 from $72 to $70 per barrel.

In the meantime, the price of West Texas Intermediate crude futures for January ,
in electronic trading on the New York Mercantile Exchange (NYMEX) is $71.79 per barrel,
$ 0.26 (0.36%) lower than the final value of the previous session.

By the end of Tuesday’s trading, the value of these futures had increased by $2.56 (3.7%) to $72.05 per barrel.

Data from the American Petroleum Institute (API), released on Tuesday,
indicated that US oil inventories declined by 3.1 million barrels over the past week. 

Inventories at the terminal in Cushing, where oil is stored on the New York stock exchange, rose by 2.4 million barrels.

API receives information from refinery operators, storage tanks and pipelines on a voluntary basis.

The United States Department of Energy will publish a weekly report on oil, gasoline and distillate reserves later in the day.

Analysts polled by Standard & Poor’s Global Platts had expected inventories to fall by an average of 1.2 million barrels.

A big leap for US indices and Standard & Poor’s is close to its all-time high

US stock indices rose sharply on the basis of Tuesday’s session, the highest since the beginning of March for the Nasdaq Composite and Standard & Poor’s 500 indices,
as concerns over the impact of the new strain of
 coronavirus on the global economy, were eased. 

The Dow Jones Industrial Index rose 493.52 points (1.4%) to 35720.55 points on Tuesday.

The index has added more than 1100 points over the past two sessions.

Standard & Poor’s rose by 2.07%, at a record pace since March 1, reaching 4686.83 points, standing at 1% of its all-time high.

The Nasdaq composite index rose by 3% against the background of trading results, a maximum since March 9 of 15686.92 points.

In particular, US President Joe Biden’s medical adviser, Dr. Anthony Fosse,
said over the weekend that there is still no evidence that Omicron is more dangerous than other strains. 

All 11 major industrial sub-indices of Standard & Poor’s were closed in a positive zone,
led by stocks of technology and energy companies, as well as manufacturers of consumer goods.

Oil stocks closed higher after oil prices rebounded.

Prices for Diamondback and Devon Energy rose by about 6%, and for Occidental Petroleum by 4%.

Intel rose 3.1% after the Wall Street Journal announced plans to bring Mobileye’s self-driving car technology division into the open market.

Prices for other chips manufacturers, including Marvell and Nvidia, rose by about 7%, and Micron – by 4%.

 

US stocks rebound

Vir Biotechnology’s stocks jumped 12% after the company and its partner GlaxoSmithKline announced
good laboratory test results for its treatment against the new Covid-19 strain.

The market value of Tesla Inc rose by 4.2% despite media reports that the U.S. Securities and Exchange Commission (SEC),
had begun an investigation into the company’s solar panels business.

The company’s stock had fallen by 11.9% in the previous four sessions.

The American Airlines Group fell by 0.2% following reports of the retirement of American airline CEO Doug Parker on March 31, 2022.

He will retain the position of Chairman of the Board of Directors after his resignation,
and the Chairman of the company, Robert Ace, will become the new Chairman.

Wells Fargo & Co and Goldman Sachs group stocks rose by 2.9% ,
and 1.6% respectively thanks to improved Morgan Stanley analysts’ ratings of these securities.

Morgan Stanley’s own stock rose by 3.6%.

The market value of AutoZone jumped 7.6%.

The United States supermarket chain that sells automobile spare parts and accessories and posted a quarterly increase in last quarter’s net profit. 

 

Positive morale driving Asian indices towards the Green Zone

Stock indices in the Asia-Pacific region show positive dynamics on Wednesday morning, with Japan’s Nikkei 225 rising by 1.48%,
China’s CSI 300 rising by 1.1%, Australia’s S & P/ASX 200 – 1.6% and South Korea’s Kospi – 0.9%.

In the meantime, US Standard & Poor’s 500 index futures show an increase of 0.4% from the previous day’s closing level,
indicating continued positive morale for the US stock market.

A weak dollar supports gold prices

Gold prices rose on Wednesday as US Treasury yields and dollar declined,
as investors shifted their focus to key inflation data scheduled for this week that could affect the Fed’s decision.

The price of spot gold rose by 0.2% to $1788.33 per ounce at 3.52 a.m. GMT. US gold futures rose by 0.3% to $1789.50.

US 10-year and 30-year Treasury yields declined from a one-week high on Tuesday while the dollar index fell by 0.2%, to boost alloy attractiveness.

The low yield reduces the opportunity cost of gold while the weak dollar reduces the cost of alloys for holders of other currencies.

Alloy prices also rose after US President Joe Biden threatened to impose “economic and other powerful measures” on Russia if it invaded Ukraine.

 

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