Close: London Session | Forex, Metals, Oil, Agriculture June 23, 2022

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Currencies

Europe slows | The euro-area economic expansion weakened sharply as surging prices curbed the rebound from pandemic restrictions and factories continued to suffer from supply snarls. European shares dropped after a survey showed euro zone business activity slowed significantly in June, adding to fears of a sharp economic downturn. Gold prices fell, weighed down by a stronger dollar. Gold prices fell, weighed down by a stronger U.S. dollar. Equities dropped sharply before halving losses: Euro Stoxx 50 was down 0.6% as of 5:30 a.m. New York time.
The dollar caught a bid with other haven currencies underpinned.

Metals

Crude futures declined 2%, spot gold dropped $5 near $1,830/oz.

Oil

Three and a half times normal.And that’s why while oil prices are very high, consumer pump prices are exceptionally high. Because in addition to being a major exporter of crude oil, Russia is also a major exporter of refined products, mostly kind of partially refined feedstock, but also diesel. These come on top of a $336 million share purchase by Berkshire last month in the oil company, and $7 billion in purchases earlier this year. European power prices surged to the highest level since December as Germany came closer to rationing natural gas supplies.
Oil prices tumbled as investors reassessed the risks of recession. Gas holiday | Biden endorsed the idea of suspending the federal US gasoline tax, though experts warn of at-best mixed results. Jay talking Federal Reserve Chair Jerome Pow View in browser Jay Powell talks soft landing, commodities show recession fear and natural gas s Lehman moment. gasoline) are paying the equivalent of nearly $58 more a barrel than the main spot price that’s commonly quoted.
The inflation gauge rose 1.4% from a month earlier with gasoline, hotel rates and cars among the largest contributors to the gains in May. Explainers you can use A Price Cap on Russian Oil — What Would That Mean?

United States

What we would say is that there is nothing automatic about high inflation or rates leading to a deep recession,” said the UBS analysts. BEFORE THE BELL Wall Street futures edged higher as Federal Reserve Chair Jerome Powell said the U.S. central bank is “strongly committed” to bringing down inflation. By contrast, markets veteran Ed Yardeni says the US may still avert a recession and even if it doesn’t, the weakness will be “fairly short and shallow.
Bill Dudley of Bloomberg Economics, a former president of the Fed Bank of New York, regards a US recession as “inevitable” within the next year to 18 months. That’s perhaps what lies ahead for the US, where inflation exceeds 8% compared with the average of 6.6% just ahead of softer recessions. Jay talking Federal Reserve Chair Jerome Powell’s testimony to Congress yesterday did little to ease fears that the US economy is at risk of falling into recession. Today we look at what happens to stocks during recessions, the state of China s property market and how women and minorities are driving entrepreneurship in the US.
Why the US has fewer sunscreen options Having lived in London most of my life, I m not used to regular sunny weather. He added that consumer spending and inflationary pressures, as well as the level of disruptions across the US s logistics network, will also impact prices. Chicago Fed President Charles Evans said after Powell’s testimony that another 75 basis point hike is a “very reasonable place to have a discussion” in the July FOMC meeting.

Europe

A formal move by European Union leaders to grant candidate status to Ukraine is expected to come at the bloc s summit in Brussels starting Thursday. Brexit is depressing the UK s assets and making it harder to recover from the global market meltdown, with the pound, stocks and bonds all on a losing run. Big tech gets caught up in EU energy politics.

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