Germany relies heavily on Russian energy imports and had opposed a full ban

US stock market: Wall Street ended sharply higher yesterday after a strong quarterly report from Meta Platforms lifted beaten-down technology and growth stocks and offset worries about the U.S. economy's contraction in the first quarter. The Facebook parent surged 17.6% after the social network reported a larger-than-expected profit and rebounded from a drop in users. 

Communication services and technology were among the strongest of 11 S&P 500 sector indexes, jumping 4.04% and 3.89%, respectively. Apple Inc., the world's most valuable company, and e-commerce giant Amazon.com Inc. both rallied more than 4% ahead of their quarterly reports later in the day. Investors have been dumping high growth stocks for weeks, due to worries about inflation, rising interest rates and a potential economic slowdown. Even with yesterday's strong gain, the tech-heavy NASDAQ was down almost 10% in the month of April, on track for its deepest one-month decline since March 2020.

Economic Calendar

Dow Jones Industrial Average

The Dow Jones Industrial Average gained 1.85%. The biggest gainers of the session on the Dow Jones Industrial Average were Salesforce.com Inc., which rose 6.33% or 11.06 points to trade at 185.74 at the close. Merck & Company Inc. added 4.94% or 4.17 points to end at 88.58 and Nike Inc. was up 4.79% or 5.81 points to 127.05 in late trade. The biggest losers included Amgen Inc., which lost 4.28% or 10.66 points to trade at 238.13 in late trade. Caterpillar Inc. declined 0.71% or 1.52 points to end at 212.44 and Boeing Co shed 0.16% or 0.24 points to 154.22.

NASDAQ 10

The NASDAQ index gained 3.06%. The top performers on the NASDAQ Composite were T Stamp Inc. which rose 123.81% to 4.70, Statera Biopharma Inc. which was up 81.87% to settle at 0.38 and Swvl Holdings Corp which gained 50.15% to close at 10.09. The worst performers were Sio Gene Therapies Inc. which was down 48.57% to 0.31 in late trade, BIOLASE Inc. which lost 34.20% to settle at 0.20 and Limelight Networks Inc. which was down 25.06% to 3.38 at the close.

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Oil price - Crude Oil market, Brent Oil market

Oil settled higher on the increased likelihood that Germany will join other EU member states in an embargo on Russian oil, which could further tighten supplies in the already stressed global crude market. Traders were reacting to media reports of comments from the German Economy Minister, who said the EU's largest economy could cope with an EU embargo on Russian oil imports and Germany hoped to find ways to replace Russian oil with other supplies.

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Germany relies heavily on Russian energy imports and had opposed a full ban. Before the war in Ukraine, Russian oil accounted for about a third of Germany's supply. A month ago, Habeck said the country had reduced its dependence on Russian oil to 25% of imports. Moscow has started to use energy exports as a cudgel following the response by the United States and its allies over Russia's invasion of Ukraine. Russia has cut off the gas supply to Poland and Bulgaria and is trying to push the EU to adopt its new gas payments system that involves opening accounts at Gazprombank where payments in euros or dollars would be converted into roubles.

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Precious and Base Metals - Gold price, Silver price, Palladium price

Gold prices lingered close to a 10-week trough yesterday, hurt by a robust dollar and expectations of faster U.S rate hikes. Spot gold was up 0.3% at $1,890.90. It hit its lowest level since Feb. 17 at $1,871.81 earlier in the session. U.S gold futures settled up 0.1% at $1,891.30. There is a slight uptick in prices as we are currently seeing some short coverings after the recent losses.

Shorter-term speculators are taking some profits on their short positions. It has lately been more downside for gold as the U.S dollar index hits highs and bond yields rise. The economy remains in pretty good shape and inflation needs to be brought under control. The dollar index rallied on Thursday to its highest level since December 2002 amid widespread weakness in its major rivals. 

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With the Fed seeing hiking interest rate by 50 basis points and possibly 75 basis points in the next two meetings after May 4, the dollar is going to remain in demand. It's very difficult to be bullish on gold at the moment. Gold has declined about 2.7% this month, which could be its biggest monthly fall since September, on expectations of an aggressive monetary policy tightening by the U.S. Federal Reserve and a stronger dollar. Rapid rate hikes will increase the opportunity cost of holding nonyielding bullion. 

The U.S. economy contracted in the first quarter amid a resurgence in COVID-19 cases and a drop in pandemic relief from the government. Meanwhile, weekly jobless claims fell from 5,000 to 180,000. In other metals, spot silver fell 0.8% to $23.10 per ounce, having hit its lowest level since Feb. 11. Platinum rose 0.3% to $919.92 per ounce and palladium gained 1.1% to $2,227.15. Copper prices touched the lowest in nearly three months yesterday after US economic growth unexpectedly went into the red, fueling fears about weaker global growth knocking metals demand.

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Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Corn futures rose yesterday, briefly hitting a fresh 10- year high, on forecasts for more showers that will further delay planting in the rain-soaked Midwest. Soybean futures eased, with traders noting that the slow pace of corn planting could cause an uptick in soybean acres as the calendar rolls past the ideal seeding date for corn. Wheat futures also were firm.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

The weak yen helped to catapult the dollar to its highest level since 2002

• Bank of Japan doubled down on its dovish policy, sending the yen to its weakest level since 2002
• The euro hit a five-year low on growth concerns for the region
• The Fed is expected to raise rates by 50 basis points when it concludes its two-day meeting

Forex market 

The dollar hit a 20-year high against rivals yesterday as the Bank of Japan doubled down on its dovish policy, sending the yen to its weakest level since 2002, while the euro hit a five-year low on growth concerns for the region. The dollar shot past the key level of 130 yen after the BOJ strengthened its commitment to keep interest rates ultra-low by vowing to buy unlimited amounts of bonds daily to defend its yield target. 

The BOJ gave the 'all clear to continue selling the yen. There had been some market speculation the BOJ might step back a little given the pressure building across foreign exchange markets. A finance ministry official responded that Japan will take appropriate action in currency markets, calling recent moves "extremely worrying."

Economic Calendar

The weak yen helped to catapult the dollar to its highest level since December 2002 against a basket of currencies. The greenback has benefited from expectations the Federal Reserve will hike rates faster than peers, which would likely expand the yield gap between the U.S and Japanese government bonds. The Fed is expected to raise rates by 50 basis points when it concludes its two-day meeting on Wednesday. Aggressive increases are likely to follow at subsequent meetings, with fed fund futures traders pricing for the Fed's benchmark rate to rise to 2.73% by year-end, from 0.33% now. 

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The greenback pared gains after data showed U.S economic growth unexpectedly contracted in the first quarter as a resurgence in COVID-19 cases disrupted activity. The euro dropped below the key psychological level of $1.05 as investors remained nervous about Russia cutting off gas to parts of the region for refusing to pay in roubles. 

The European Commission today warned buyers of Russian gas they could breach sanctions if they converted gas payments into roubles, as officials struggled to clarify the EU's stance on Moscow's payments scheme, which has sowed confusion in the bloc.

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Euro-EUR

The single currency weakened yesterday on growth concerns after Russia cut off gas supplies to two eastern European nations. The dollar has gained on expectations that the U.S central bank will be more hawkish than its peers. The Fed is expected to increase rates by 50 basis points at its May 3-4 meeting as well as in June and July. Overall, the EUR/USD traded with a low of 1.0469 and a high of 1.0563 before closing the day around 1.0497 in the New York session.

Japanese Yen-JPY

The Japanese Yen fell against the U.S dollar after the Bank of Japan (BOJ) doubled down on its super-low yield policy. There had been some market speculation the BOJ might step back a little given inflation was rising and other major central banks were tightening, but it showed no hesitation. The yen is not being ignored, but it is mostly a side effect of the BOJ. Overall, the USD/JPY traded with a low of 128.32 and a high of 131.23 before closing the day around 130.82 in the U.S session.

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British Pound-GBP

The British Pound edged higher today but was still trading near a 21-month low against a buoyant U.S dollar that has hit multi-year peaks against both the Japanese yen and euro. Expectations of aggressive Fed tightening this year have pushed yields on U.S 10-year notes around 45 basis points this month, in turn sending the dollar index to a five-year high. Overall, the GBP/USD traded with a low of 1.2409 and a high of 1.2568 before closing the day at 1.2455 in the New York session.

Canadian Dollar-CAD

The Canadian Dollar was little changed against its U.S. counterpart holding near its weakest level in more than six weeks, as investors grew more worried that Europe's economy could tip into recession. Risk aversion is the primary driver of the Canadian dollar right now. The price of oil, one of Canada's major exports, settled 0.3% higher at $102.02 a barrel. Overall, USD/CAD traded with a low of 1.2788 and a high of 1.2877 before closing the day at 1.2805 in the New York session.

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Australian Dollar-AUD

The Australian Dollar was on the ropes today as worries about a recession in Europe and a slowdown in China engulfed risky assets and overwhelmed the promise of rising interest rates at home. Adding to the pressure was a decision by the Bank of Japan (BOJ) to reaffirm its super-easy policy, which sparked a rush from the yen to the U.S dollar and lifted the latter across the board. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has gained 1.25%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has gained 1.16%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has gained 1.45%.

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Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has gained 0.12%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has lost 0.42%.

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China's COVID-19 curbs and fears of aggressive U.S. Federal Reserve tightening

US stock market: U.S. shares tumbled yesterday, with the NASDAQ posting its steepest one-day route since September 2020, while European stocks extended losses for a third session as investors warily awaited U.S. tech earnings and fretted over global growth. 

China's COVID-19 curbs and fears of aggressive U.S. Federal Reserve tightening continued to dampen risk appetite and lifted the dollar to new two-year highs. Oil prices rebounded in volatile trading and gold prices rose on safe-haven buying. There's a lot of anxiety ahead of the earnings which are coming up, today and tomorrow just because if they don't hold up, then there's nothing left to hold up the market. 

Three-fourths of Beijing's 22 million people lined up for COVID-19 tests as the Chinese capital raced to stamp out a nascent outbreak and avert the city-wide lockdown that debilitated Shanghai for a month. There's a little bit of a growth scare coming in but in our view, there won't be an immediate slowdown in growth or inflation.

Economic Calendar

Dow Jones Industrial Average

The Dow Jones Industrial Average declined 2.38% to hit a new 1-month low. The biggest gainers of the session on the Dow Jones Industrial Average were Chevron Corp, which fell 0.61% or 0.96 points to trade at 156.53 at the close. Johnson & Johnson fell 0.72% or 1.33 points to end at 184.68 and Amgen Inc. was down 0.91% or 2.30 points to 249.87 in late trade. The biggest losers included Nike Inc., which lost 5.80% or 7.42 points to trade at 120.52 in late trade. Boeing Co declined 5.04% or 8.87 points to end at 167.04 and Visa Inc. Class A shed 4.22% or 8.85 points to 201.10.

NASDAQ 100

The NASDAQ index fell 3.95%. The top performers on the NASDAQ Composite were Evoke Pharma Inc. which rose 118.50% to 0.86, Nutex Health Inc. which was up 73.76% to settle at 7.68 and Cyngn Inc. which gained 52.07% to close at 3.68. The worst performers were Protagonist Therapeutics Inc. which was down 49.95% to 9.41 in late trade, Enjoy Technology Inc. which lost 29.95% to settle at 1.45 and LogicBio Therapeutics Inc. which was down 25.74% to 0.40 at the close.

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Oil price - Crude Oil market, Brent Oil market

Oil was broadly steady today after Russia cut gas supplies to Bulgaria and Poland, although lingering concerns about Asian coronavirus lockdowns weighing on economic growth and oil demand kept a lid on prices. U.S. West Texas Intermediate crude futures gained 10 cents, or 0.1%, to $101.80 a barrel. Oil prices shrugged off the dollar rising to their highest in two years, making oil purchases more expensive for holders of other currencies. 

Russian energy giant Gazprom said today it halted gas supplies to Bulgaria and Poland in a major escalation of Russia's broader row with the West over its actions in Ukraine, which Moscow calls a "military operation". The International Monetary Fund (IMF) warned yesterday that Asia faces a "stagflationary" outlook with the Ukraine war, a spike in commodity costs, and a slowdown in China. 

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China's central bank said on Tuesday it would step up monetary policy support as Beijing races to stamp out a nascent COVID-19 outbreak in the capital and avert the same type of debilitating city-wide lockdown Shanghai has been under for a month.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold prices slipped 1% to a two-month low earlier today as a rally in the dollar on expectations of faster U.S. rate hikes dented the appeal of greenback-priced bullion. Spot gold fell 0.6% at $1,894.96 per ounce, having dropped to $1,886.09, a low since Feb. 25. U.S gold futures slid 0.4% to $1,896. We are in an environment that is definitely not the best one for gold. 

Bullion is slowing down due to the strength of the U.S. dollar and expectations of a hawkish Federal Reserve policy. The dollar index, which measures its performance against a basket of six major currencies, scaled a post-March 2020 peak driven by the prospect of aggressive U.S. rate hikes and safe-haven flows fanned by slowing growth in China and Europe. 

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Inflation pressure can be positive for gold if central banks are unable to keep the rally of prices under control. Rising U.S. interest rates increased the opportunity cost of holding nonyielding gold, while also boosting the dollar, in which it is priced. The greenback is also seen as a rival safe-haven asset to gold during economic and political crises. So, $1,900 is clearly a pivotal level for today's session. Looking further out, it's not looking ideal at the moment with the U.S. dollar at a 25-month high. 

In other metals, spot silver rose 0.4% to $23.57 per ounce, platinum eased 0.6% to $915.37 and palladium jumped 1.7% to $2,224.07.

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Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat and corn futures rose in yesterday’s session, supported by concerns that adverse weather in key production areas would limit the size of harvests this year, traders said. Soybean futures were weak, but losses were kept in check by signs that export demand from China remains strong despite concerns about a slowing economy from the world’s top buyer of soy due to COVID-19 lockdowns. 

The US Department of Agriculture (USDA) on Monday afternoon rated 27% of US winter wheat in good-to-excellent condition, down three percentage points from a week ago and the lowest for this time of year since 1989, as drought persists in the Plains wheat belt. USDA also said that corn planting was 7% complete as of April 24, below the average analyst estimate of 9%, and the five-year average of 15%.

Forex News: Forex analysis

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Investors speculating that the BOJ or government may act to stabilize the currency

• Expectations the Federal Reserve will aggressively hike rates boosted demand for the greenback
• The single currency has been hurt by the economic impact of the war in Ukraine
• The U.S central bank is expected to raise rates by 50 basis points when it meets next week

Forex market 

The dollar hit a two-year high yesterday as concerns about slowing growth in China and expectations the Federal Reserve will aggressively hike rates boosted demand for the greenback. The Japanese yen also rebounded as investors speculated that the Japanese central bank or government may act to stabilize the currency, which last week hit a 20-year low against the dollar. 

Concerns about Chinese growth have increased with the financial hub of Shanghai has been under strict lockdown to fight COVID-19 for around a month. Beijing overnight also ramped up plans for mass testing of 20 million people and fueled worries about a looming lockdown. The Wall Street Journal also on Tuesday reported that Chinese President Xi Jinping has told officials that he wants China’s economic growth to outpace the United States this year. That may be slower than previously expected. 

Economic Calendar

China last month targeted economic growth of around 5.5% this year. The consensus for U.S GDP growth this year is just barely above 3%, so that’s a huge, huge downgrade in terms of a growth target. The dollar index against a basket of currencies was last up 0.61% at 102.30, the highest since March 2020. 

The offshore yuan held just below a 17-month low reached on Monday after China's central bank eased banks' foreign exchange holding requirements in an effort to stem the currency's drop. The single currency has been hurt by the economic impact of the war in Ukraine and by expectations the European Central Bank will move more slowly than the Fed in raising interest rates. 

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The euro added to losses after it was reported that Russian gas supplies under the Yamal contract to Poland have been halted. The U.S central bank is expected to raise rates by 50 basis points when it meets next week, and again in June and July. Fed funds futures traders expect the Fed’s benchmark rate to rise to 2.69% by year-end.

Euro-EUR

The single currency dropped to its weakest since 2017 today as investors increasingly concerned about the global growth and inflation outlook snapped up dollars, while a mixed bag of corporate earnings sent stock markets lower again. The dollar has roared 4.3% higher in April and is on course for its best month since January 2015. Overall, the EUR/USD traded with a low of 1.0634 and a high of 1.0737 before closing the day around 1.0636 in the New York session.

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Japanese Yen-JPY

The Japanese Yen rebounded as investors speculated that the Japanese central bank or government may act to stabilize the currency, which last week hit a 20-year low against the dollar. Concerns about Chinese growth have increased with the financial hub of Shanghai has been under strict lockdown to fight COVID-19 for around a month. Overall, the USD/JPY traded with a low of 127.00 and a high of 128.21 before closing the day around 127.20 in the U.S session.

British Pound-GBP

The British Pound held near its lowest levels since 2020 yesterday against a broadly firm dollar, with worries about Britain's economic outlook exacerbated by the latest debt numbers and fears that COVID-19 restrictions in China will hurt world growth. It is down 3.7% this month against the dollar and is set for its biggest monthly fall since July 2019. Overall, the GBP/USD traded with a low of 1.2569 and a high of 1.2770 before closing the day at 1.2572 in the New York session.

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Canadian Dollar-CAD

The Canadian Dollar weakened to a six-week low against its U.S counterpart, as rising uncertainty about the global economic outlook contributed to financial market volatility and broad-based gains for the safe-haven U.S currency. It will be hard for the CAD to reflect tighter BoC policy and still relatively firm commodity prices while risk appetite remains fragile. Overall, USD/CAD traded with a low of 1.2682 and a high of 1.2825 before closing the day at 1.2822 in the New York session.

Australian Dollar-AUD

The Australian Dollar was deep underwater today as concerns about the impact of coronavirus lockdowns on Chinese demand sank commodity prices and risk trades in general. It has now shed 2.6% in just two sessions and risks further retracement. The Australian Dollar was undermined by sharp falls in commodity prices with iron ore - Australia's biggest export earner. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

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Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has lost 1.39%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has lost 2.00%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has lost 1.48%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has gained 0.61%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has lost 1.00%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.

Traders are pricing in big moves by the Fed this year to control inflation

US stock market: Wall Street rose yesterday, with the NASDAQ ending sharply higher after Twitter agreed to be bought by billionaire Elon Musk, sparking a late-day rally in growth stocks. Twitter ended up 5.6% after announcing it would be bought by Musk in a deal that will shift control of the social media giant to the world's richest person.

The S&P 500 traded in negative territory for much of the session but extended gains after Twitter's announcement. The S&P 500 growth index ended up over 1%, also bouncing back from an earlier decline. Earlier, uncertainty reverberated across world markets, with Chinese shares marking their biggest slump since a pandemic-led selling in February 2020 and European stocks falling to their lowest in over a month on fears of strict restrictions in China. 

Economic Calendar

Traders are pricing in big moves by the Fed this year to control inflation after a series of hawkish remarks from policymakers. Fed Chair Jerome Powell last week gave a "go" sign to a half-point rate hike in May.

Dow Jones Industrial Average

The Dow Jones Industrial Average rose 0.70%. The best performers of the session on the Dow Jones Industrial Average were Johnson & Johnson, which rose 2.46% or 4.47 points to trade at 186.01 at the close. Meanwhile, Microsoft Corporation added 2.44% or 6.69 points to end at 280.72 and American Express Company was up 1.97% or 3.56 points to 184.10 in late trade. The worst performers of the session were Verizon Communications Inc., which fell 3.14% or 1.63 points to trade at 50.28 at the close. Chevron Corp declined 2.15% or 3.46 points to end at 157.49 and Nike Inc. was down 0.88% or 1.13 points to 127.94.

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NASDAQ 100

The NASDAQ index climbed 1.29%. The top performers on the NASDAQ Composite were Nkarta Inc. which rose 140.93% to 18.72, Rubius Therapeutics Inc. which was up 40.60% to settle at 1.87 and Erytech Pharma SA ADR which gained 37.70% to close at 1.68. The worst performers were Clarus Therapeutics Holdings Inc. which was down 56.17% to 0.79 in late trade, Eliem Therapeutics Inc. which lost 55.76% to settle at 2.88 and Toughbuilt Industries Inc. which was down 44.87% to 14.57 at the close.

Oil price - Crude Oil market, Brent Oil market

Oil prices fell today as China's capital Beijing expanded its COVID mass testing, heightening demand concerns and outweighing the prospect of supply disruptions. U.S West Texas Intermediate contracts were down 82 cents, or 0.8%, at $97.72 per barrel. China's capital Beijing has expanded its COVID-19 mass testing from one district this week to most of the city of nearly 22 million, as the population braced for an imminent lockdown similar to Shanghai's stringent curbs. 

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China is the world's largest crude oil importer. The prospect of supply tightness in the physical market related to the phasing out of Russian oil capped the fall in prices. The parliamentary parties of Germany's ruling coalition have called on the government to push ahead with a plan to phase out Russian oil and gas imports "as soon as possible". But analysts said that the release of oil from emergency reserves has eased concerns of tight supply. Focus has shifted towards the demand side of the equation.

Precious and Base Metals - Gold price, Silver price, Palladium price

Gold was up today morning in Asia, rallying from the near one-month low hit during the previous session. A slight pullback in the U.S dollar and lower Treasury yields also gave the yellow metal a boost. Gold futures were up 0.66% to $1,671.75. The dollar, which normally moves inversely to gold, was down on Tuesday but remained near the two-year high hit during the previous session. 

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Benchmark U.S. 10-year Treasury yields also eased. Some tentative support has appeared in Asia as China eased foreign currency reserves for local banks and set a neutral USD/CNY fix to support the yuan. The People’s Bank of China said it would step up monetary policy support to the real economy, especially to small firms hit by the COVID-19 pandemic, in response to a media question seeking comment on swings in the financial markets. 

The central bank also cut the amount of money that banks need to have in reserve for their foreign currency holdings yesterday. Elsewhere in the Asia Pacific, the Bank of Japan will hand down its monetary policy decision on Thursday. The European Central Bank will also publish its economic bulletin on the same day. Meanwhile, the war in Ukraine precipitated by the Russian invasion on Feb. 24 continues. While it warned that the risks of a nuclear war should not be underestimated, Russia said that it wanted to reduce those risks. 

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Conventional Western weapons were legitimate targets in Ukraine, where battles continue in the east. In other precious metals, silver rose 1%, platinum gained 0.6%, and palladium jumped 2.1% to $2,189.18. Palladium recovered from a drop of almost 13% yesterday, with concerns that further COVID-19 lockdowns in key consumer China will reduce demand contributing to the fall. Like gold, the recovery in palladium looks fragile.

Traditional Agricultures - Corn futures, Wheat futures,  Soybean futures

Wheat futures rose today as a decline in U.S winter crop conditions heightened concerns over global supplies, which have already been hit by Russia's invasion of Ukraine. Corn rose for a second straight session as a slow start to U.S planting underpinned prices. Weekend rainfall, forecast and realized, was not enough to make a difference to the outlook for troubled crops.

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The U.S dollar scaled two-year peaks, as a wave of risk aversion hit global markets

• The Chinese yuan posted its largest three-day losing streak in nearly four years
• The dollar is increasingly in vogue given the dimmer outlook for the world economy
• French President’s election victory over far-right rival Marine Le Pen quickly faded

Forex market 

The U.S. dollar scaled two-year peaks, as a wave of risk aversion hit global markets, while the Chinese yuan posted its largest three-day losing streak in nearly four years on growing worries of an economic slowdown in the world's second-largest economy. 

With the war in Ukraine entering the third month and growing concerns of a China-wide COVID-19 outbreak sparking a rout in Chinese stocks, investors dumped currency market darlings like the Australian dollar and the offshore Chinese yuan. Against a basket of its rivals, the dollar rose to 101.86, a level it last tested in March 2020. 

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It was last at 101.76, up 0.7%, its largest daily percentage gain since March 11. The dollar is increasingly in vogue given the dimmer outlook for the world economy, coupled with the Federal Reserve's ever assertive rhetoric about big rate hikes to help it tame inflation. China's struggle to contain the COVID-19 is adding to risk aversion that's partly behind the dollar's dominance. 

The People's Bank of China on Monday said it would cut the FX reserve requirement ratio (RRR) by 100 basis points to 8% beginning May 15, to "improve financial institutions' ability to use foreign exchange funds", according to an online statement. It was a move aimed at slowing the depreciation of the yuan. We expect this RRR cut to slow down CNY depreciation in the near term, though it would also depend on the broad U.S dollar path and overall sentiment toward Chinese growth. 

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The Aussie, which was one of the biggest gainers in currencies in the first quarter of 2022 thanks to surging commodity prices, fell broadly. It dropped 0.9% against the U.S. dollar. The euro's tiny gains after French President Emmanuel Macron's comfortable election victory over far-right rival Marine Le Pen quickly faded, with the single currency down 0.9% at $1.0717, against a resurgent dollar. The latest positioning data for last week showed hedge funds trimmed their long euro bets.

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Euro-EUR

The single currency traded lower with the war in Ukraine entering the third month and growing concerns of a China-wide COVID-19 outbreak sparking a rout in Chinese stocks. French President Emmanuel Macron's comfortable election victory over far-right rival Marine Le Pen quickly faded with the single currency down 0.9%. Overall, the EUR/USD traded with a low of 1.0769 and a high of 1.0850 before closing the day around 1.0797 in the New York session.

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Japanese Yen-JPY

The Japanese Yen steadied as markets faced a multitude of risks including central banks tightening policy just as economic growth momentum slows, investors have been buying up dollars. The dollar index, which measures the U.S currency against a basket of rivals, has risen 6.5% so far in 2022. It has gained 3.65% so far this month. Overall, the USD/JPY traded with a low of 127.71 and a high of 129.09 before closing the day around 128.53 in the U.S session.

British Pound-GBP

The British Pound fell yesterday to its lowest level since September 2020 against a strengthening dollar, while money markets scaled back their bets on future monetary policy tightening by the Bank of England. Money markets are pricing around 150 basis points (bps) of BoE interest rate hikes by the end of this year. Overall, the GBP/USD traded with a low of 1.2820 and a high of 1.3033 before closing the day at 1.2830 in the New York session.

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Canadian Dollar-CAD

The Canadian Dollar will remain at the center of the country's financial system, the central bank chief said on Monday, responding to questions about a Conservative leadership candidate's pledge to make the country the blockchain capital of the world. There are promising benefits from innovation in the financial sector. Overall, USD/CAD traded with a low of 1.2565 and a high of 1.2723 before closing the day at 1.2708 in the New York session.

Australian Dollar-AUD

The Australian Dollar was deep underwater today as concerns about the impact of coronavirus lockdowns on Chinese demand sank commodity prices and risk trades in general. It has now shed 2.6% in just two sessions and risks further retracement. The Australian Dollar was undermined by sharp falls in commodity prices with iron ore - Australia's biggest export earner. Overall, AUD/USD traded with a low of 0.7358 and a high of 0.7416 before closing the day at 0.7410 in the New York session.

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Euro-Yen EUR/JPY

EUR/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also issuing a bullish stance. The Relative Strength Index is above 61 and lies above the neutral zone. In general, the pair has lost 0.19%.

Sterling-Yen GBP/JPY

Currently, GBP/JPY is trading above 14, 50 and 100 days moving average. Fast stochastic is issuing a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 60 reading and lies above the neutral zone. On the whole, the pair has lost 1.38%.

Aussie-Yen AUD/JPY

Currently, the cross is trading above 14, 50 and 100 days moving average. Fast stochastic is giving a bullish tone and MACD is also indicating a bullish stance. The Relative Strength Index is above 76 reading and lies above the neutral region. In general, the pair has lost 1.62%.

Euro-Sterling EUR/GBP

This cross is currently trading above 14, 50 and below 100 days moving average. Fast stochastic is indicating a bullish tone and MACD is also issuing a bullish signal. The Relative Strength Index is above 53 and lies below the neutral region. Overall, the pair has gained 1.19%.

Sterling-Swiss GBP/CHF

This cross is trading below 14, 50 and 100 days moving average. Fast stochastic is issuing a bearish stance and MACD is also indicating a bearish tone. The Relative Strength Index is above 45 and lies below the neutral region. In general, the pair has lost 1.15%.

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All information has been prepared by TraderFactor or partners. The information does not contain a record of TraderFactor or partner's prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may read it. Past performance is not a reliable indicator of future performance.