New York — Oil and gold rose on Wednesday after NATO and the United States said Russia was increasing its military buildup near Ukraine.
Stronger than expected US retail sales data and higher inflation rates from Canada and the UK have been added to the outlook for global monetary tightening policies, but geopolitical tensions have left most of the market in Ukraine. I was concentrating on the stand-off.
The Federal Reserve has agreed that it’s time to raise interest rates, but the decision will be minutes from the two-day meeting in late January and will rely on inflation and other data analysis each time it meets. I agreed.
Tim Grisky, Senior Portfolio Strategist at Ingalls & Snyder, said:
“The minutes are a bit more dovish than we heard from Chair Powell after the Fed’s press conference in January,” Grisky added.
On Wall Street, the Dow Jones Industrial Average fell 0.16 percent, the S & P 500 rose 0.09 percent, and the Nasdaq Composite fell 0.11 percent. With the exception of the Energy Index, all 11 S & P sectors early in the session were high, but stocks held back losses after the Fed’s minutes were released.
MSCI’s global equity gauge reversed the course to record a 0.32% rise, but its emerging market index rose 1.23%.
In the news on Tuesday, the sharp rise in the Asian stock market that Russia had withdrawn some troops declined in the European session, and the STOXX 600 pan-European index barely rises to 0.04%. I gave up the initial rise.
NATO questioned Moscow’s expressed willingness to negotiate a solution to the crisis, one of the deepest East-West relations in decades, saying Russia has increased the massive military buildup surrounding Ukraine. Blame.
US Secretary of State Antony Blinken endorsed this assessment. The prospect is that intrusions will further limit supply, raising the price of gold in safe places and pushing up crude oil and related assets.
“In reality, there are no signs of deescalation,” said Bipan Rai, Head of North American Forex Strategy at CIBC Capital Markets.
US crude oil futures rose $ 1.59 to settle at $ 93.66 a barrel, and Brent settled at $ 1.53 at $ 94.81.
The Russian ruble rose 0.64 percent per dollar to 75.12, as fears of immediate military action have so far diminished.
Previously, U.S. retail sales recovered sharply in January due to a surge in purchases of cars and other commodities, but rising prices could slow down the impact on economic growth this quarter. ..
According to the data, retail sales increased 3.8% last month, almost double the consensus forecast of 2.0% increase by economists.
Spot gold, which reached its highest level since June 2021 at around $ 1,879 per ounce on Tuesday, increased 0.8 percent to $ 1,867.51.
US gold futures fell 0.8% to trade at $ 1,871.50.
Inflation remained a market concern as consumer prices rose at the fastest annual rate in nearly 30 years and the Bank of England was more likely to raise interest rates three times in a row, according to UK data.
Canada’s annual inflation rate accelerated again in January, reaching a 30-year high of 5.1%, providing the basis for a steady series of rate hikes.
US Treasury and Eurozone government bond yields have widened their decline. Yields on 10-year government bonds fell 0.5 basis points to 2.040%.
Two-year Treasury yields, which typically move in step with interest rate expectations, fell 3.4 basis points to 1.535%. Previously it hit a low of 1.494%.
The dollar index fell 0.215% and the euro rose 0.18% to $ 1.1376.