Emergency Meeting! The G7 trade ministers held their first meeting of the year via teleconference to discuss export controls and economic security. The meeting was held after Japan announced it would restrict exports of semiconductor equipment, in line with U.S. restrictions aimed at slowing China's military and technological advances. The continuous sanctions by the U.S. have threatened supply chain resilience between countries and slowed down business globally. Chinese regulators have also slowed down their reviews of proposed acquisitions by US firms, including Intel's takeover of Tower Semiconductor and MaxLinear's purchase of Silicon Motion Technology. The regulators are demanding that the companies make their products available in China to counter US export controls on China as part of China's ongoing fight with the US over access to advanced technology.
EQUITY
The bear is clawing over concerns about slowing economies, as highlighted by data showing a drop in US job openings and factory orders. JPMorgan's CEO warned of an ongoing banking crisis, and short interest in Canada's TD Bank topped $3.7 billion due to its interest in the First Horizon Corp. merger.
GOLD
Gold prices broke out of their consolidative price action and rose slightly on Wednesday, nearing a record high set in 2020. Weak economic indicators and signs of a looming recession drove safe haven demand for the precious metal.
OIL
The recent OPEC production cut that sent oil prices sky high has seen small range continuation on the upside as investors are still weighing the balance between tight supply and slowing demand as API crude inventories reported lower figures, indicating demand recovery although jobs reports indicate otherwise.
CURRENCY
The US dollar fell to a two-month low due to weak economic data and speculation that the Federal Reserve may end its tightening cycle following the Reserve Bank of Australia's rate pause, while the Reserve Bank of New Zealand continued to raise interest rates by 25 basis points.
