What you should keep in mind on Thursday, December 29:
The US dollar advanced in the last trading session on Wednesday, favored by the bad mood of the markets. Stock Markets World Cups closed lower with attention still on China and the possible effects of a full reopening. On the one hand, the markets welcomed the news that the government is abandoning its zero interest rate policy to favor economic growth. On the other, they fear that this change will fuel pressures on prices and send inflation through the roof. The main indices are on course for the worst year in more than a decade.
The US 10-year Treasury yield stands at 3.88%, more than double the approximate 1.5% it offered at the end of 2021. The 2-year yield currently trades at 4.35% after paying around 0.75%. at the beginning of the year. One thing leads to another, as there is speculation that inflation could pick up again, pushing up yields at the shorter end of the curve, which in turn fuels concerns about a possible recession.
OPEC+ distanced itself from the Russian decision to cut oil exports to countries that adhere to the price limit. Crude oil fell intraday, but pared losses before the close. WTI is trading around $78.80 a barrel.
Spot gold continued to fall but managed to hold the $1,800 level and is trading at $1,805 a troy ounce.
Commodity-linked currencies fell sharply, weighed down by equities and oil prices. The USD/CAD pair is trading around 1.3600, while the AUD/USD pair is around 0.6740.
EUR/USD remains above 1.0600, on the downside, while GBP/USD hovers around 1.2025. Finally, the USD/JPY pushes its weekly highs in the 134.30 area.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
