The global market is in upheaval as investors struggle with a slew of major macro data points, including interest rate decisions and economic growth in several regions. The drone strike on an Iranian plant, the reopening of Chinese markets following the Lunar New Year break, and the forthcoming OPEC+ conference is all having an impact on the global market, especially the oil market. This week volatility is expected to be higher than average and it is an opportunity not to be missed.
U.S. stocks ended last week higher. Focus on economic indicators and earnings results from Exxon Mobil, Caterpillar, Amazon, and Apple. The Federal Reserve's interest rate decision and statement will be closely watched, with a 25-basis point increase expected due to cooling inflation. It could be the soft landing that the Feds worked so hard to achieve, and the market could have priced in the slowing hike.
Spot gold failed to close the week above $1,932, and its drop to below $1,928 raises the prospect of further decline. Gold prices are influenced by the Federal Reserve meeting as well as economic indicators from China and the Eurozone.
Oil prices remain volatile as a result of a drone attack on an Iranian facility and a supply surplus led by Russia. Brent crude futures increased 0.3% to $86.65 per barrel, while West Texas Intermediate crude futures increased 0.3% to $79.94 per barrel. OPEC+ is expected to maintain current production levels, despite uncertainty about near-term crude demand.
The 10-year bond rate in the United States was 3.50%. The Federal Reserve meeting and economic indicators from China and the Eurozone are playing pivotal roles in currency volatility. The U.S. dollar index was up 0.1%, while the euro was down 0.21%. The British pound was up 0.15%, and the Japanese yen was down 0.31%.