Friday’s trading, the last trading day of this week, witnessed a divergence in risk appetite in various global markets, with some major financial institutions announcing their quarterly profits, and after the release of US inflation data yesterday and statements by some members of the European Central today, amid expectations of a global recession, and the following are the changes witnessed The most prominent assets traded in global markets:
First: Risk Appetite and Stock Markets:
Global stock markets witnessed a recovery during today’s trading, amid some institutions announcing their quarterly profits and statements by some officials.
US stock index futures rose in pre-market trading, amid the announcement of major US investment banks about their strong quarterly profits, and European stock indices rose, affected by the rise of US stocks on Wall Street yesterday.
On the other hand, most Asian stock indices also rose, as Japanese stocks closed the session higher with the Bank of Japan’s statements to continue to support the economy, and Chinese stocks rose, with the People’s Bank of China’s statements of more support for the affected companies and acceleration of monetary easing, and stock indices rose in New Zealand and Australia Taiwan, India and South Korea.
Second: Risk Appetite and the US Dollar:
The dollar witnessed a strong rise during today’s trading, after the US inflation data was released yesterday, which came in higher than expected, indicating another big step with the US Federal Reserve meeting on November 1st.
Those expectations pushed the greenback to post very strong profits, since yesterday, but nevertheless, the decline in US Treasury yields limited the dollar’s bullish momentum.
Third: The appetite for risk and gold:
Gold contracts witnessed a sharp decline early in the session, due to the strong rise of the US dollar, but it was able to limit its losses after that, as it received some support from the decline in US Treasury bond yields.
Fourth: Risk appetite and oil:
Oil contracts fell clearly during today’s trading, as fears of a decline in global demand dominated investors in the market amid increasing expectations of a global recession and slowing growth in China with the continued renewal of epidemic restrictions.
Impact of Risk Appetite on Currencies and Commodities:
Risk appetite and the US dollar: The dollar index – which measures the performance of the US currency against 6 major currencies – rose by 0.15% to record 112.49 points.
Risk appetite and gold Gold futures prices fell by 0.52% to $1,668.20 an ounce, and bullion spot contracts fell by 0.31%, to $1,661.14 an ounce.
Risk appetite and oil: Brent crude futures fell 1.68% to $92.92 a barrel, and US West Texas Intermediate crude prices also fell by 2.00% to $87.38 a barrel.