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1. U.S. stock indexes closed mixed. The Dow Jones Industrial Average rose 0.29% to 51,712.71 points, the S&P 500 fell 0.37% to 7,472.79 points, and the Nasdaq Composite fell 1.32% to 26,166.6 points. Caterpillar rose more than 3%, and Amgen rose more than 2%, leading the Dow. The Wind U.S. Tech Big Seven Index fell 2.33%, with Google falling more than 5% and Amazon falling more than 4%. SpaceX fell more than 16%, wiping out $400 billion in market value and falling below its first-day closing price. 2. European stock indexes closed mixed. The German DAX rose 0.62% to 25,139.69 points; the French CAC40 fell 0.25% to 8,400.11 points; and the UK FTSE 100 rose 0.72% to 10,437.85 points. 3. US Treasury yields rose across the board. The 2-year Treasury yield rose 5.31 basis points to 4.226%, the 3-year Treasury yield rose 5.36 basis points to 4.246%, the 5-year Treasury yield rose 5.86 basis points to 4.287%, the 10-year Treasury yield rose 5.55 basis points to 4.509%, and the 30-year Treasury yield rose 4.97 basis points to 4.948%. 4. The most active US crude oil futures contract closed down 3.21% at $74.08 per barrel; the most active Brent crude oil futures contract fell 2.8% to $77.81 per barrel. 5. International precious metals futures generally closed higher. COMEX gold futures rose 0.88% to $4209.70 per ounce, and COMEX silver futures rose 0.42% to $65.19 per ounce. 6. Most London base metals rose, with LME zinc up 1.28% to $3,602.0/ton, LME nickel up 0.74% to $17,710.0/ton, LME copper up 0.56% to $13,671.0/ton, LME lead up 0.56% to $1,965.0/ton, LME tin down 0.11% to $53,235.0/ton, and LME aluminum down 1.07% to $3,360.0/ton.UK grid operator: Ample power supply expected this winter.June 23 - Asian stocks are poised for a higher open as market optimism about progress in US-Iran peace talks boosts oil prices, offsetting weakness in Wall Street stocks after declines in several tech giants dragged down benchmark indices. Stock index futures suggest gains in Sydney, Hong Kong, and Tokyo markets. SpaceX shares plunged 16% on Monday after announcing a large-scale investment-grade bond issuance. Market expectations of a US-Iran agreement, coupled with a recovery in AI trade and robust corporate earnings, have propelled the S&P 500 nearly 20% from its war-induced lows. UBSs Chief Investment Office stated that while geopolitical developments may remain a major source of market volatility in the short term, shifts in investor confidence regarding the sustainability of the AI rally could also cause market fluctuations.Air raid sirens have been issued in Kyiv, Ukraine, and the government is urging residents to seek refuge.June 23 – According to CNN, citing a source familiar with the matter, a large-scale layoff initiated by Bill Pulte, acting Director of National Intelligence appointed by US President Trump, began on Monday. The source stated, "The purge of the deep state has begun," but declined to specify the number of positions to be cut. Previously, sources indicated that Pulte was considering cutting hundreds of positions in the Office of the Director of National Intelligence (ODNI). The source said that Pulte arrived at his post the day before his official start date last week and requested a complete list of all office staff, a move that even caught outgoing Director of National Intelligence Gabbard off guard. Another source indicated that the National Counterterrorism Center and the National Counterintelligence and Security Center are expected to be the primary targets of the layoffs.

WTI advances toward $75.00 as China-related demand optimism offsets recession fears

Daniel Rogers

Jan 09, 2023 11:55

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In the early hours of Monday, WTI steadily climbs near the intraday high of $74.70 as bullish emotion competes with economic slowdown worries. Despite this, the weaker US Dollar and a light schedule allow buyers of black gold to maintain control following Friday's mixed performance.

 

In spite of this, the risk profile remains elevated in light of China's reopening of its borders after a three-year closure. On the same line, Guo Shuqing, party secretary of the People's Bank of China, made his remarks (PBOC).

 

Reuters, transmitting China unlock news, claimed that "about 2 billion journeys are anticipated this season, roughly doubling the volume of previous year, and recovering to 70% of 2019 levels," citing a statement from the Chinese government.

 

On the other side, PBOC's Shuqing stated, "The world's second-largest economy is likely to recover rapidly due to the country's optimal Covid-19 response and the continued implementation of its economic policies."

 

The US Dollar Index (DXY) fell the most in three weeks the day before, down 0.20% intraday to 103.70 as of press time, as the US employment report failed to excite greenback purchasers and the US activity numbers stoked fears of an economic slowdown. It's worth mentioning that the previous day's disappointing US wage growth, ISM Services PMI, and Factory Orders weighed on Treasury bond yields and the DXY.

 

On a different page, reports regarding a delay in the restoration of the colonial pipeline and the Russia-Ukraine conflict appear to also benefit energy buyers. Traders fear additional rate hikes ahead of the release of the Consumer Price Index (CPI) for December from China and the United States on Wednesday and Thursday, respectively, which tests the positive momentum.