© Reuters. How did investor sentiment change risk appetite in the early sessions of the week?
Arabictrader.com – Risk appetite saw clear fluctuations during the early trading sessions of the week on Friday, with investors anticipating a busy week as US inflation data is due to be released as well as the issuance of the Bank of England and the Swiss National Bank, as well as the Purchasing Managers Indices, and the following are the observed developments in Risk appetite for the most important assets traded in the markets:
First: risk appetite and equity markets:
Equity markets saw mixed performances in today’s trading, with risk appetite tending to ease amid investors anticipation of interest rate decisions from some of the major central banks.
And European inventories fell as severe cold spells hit the region significantly and concerns about the adequacy of European gas inventories to cover heating consumption during the winter season.
At the same time, US stock index futures rose marginally, benefiting from the declining dollar, but the increase was marginal in light of US Treasury Secretary Janet Yellen’s statements this morning that there is a possibility of a recession in the US. US economy.
On the other hand, Japanese stock indexes and China stock indexes have also declined, due to recent increases in the number of cases.
Second: risk appetite and the US dollar:
The US currency rallied sharply at the start of early trading but tended to reduce its profits and then decline following statements by the US Treasury Secretary this morning in which he said that the US economy could deal with a recession, but there is no need to reduce inflation.
This also reinforced the observed decline in dollar loss yields, in light of investor expectations for the release of US inflation data and thus the Federal Reserve’s interest rate decision this week.
Third: Appetite for Risk and Gold:
Gold has seen a significant decline in today’s trading, especially in the early stages of trading, but has tended to trim its profits throughout the session, benefiting from the decline in the US dollar and US bond yields.
Fourth: Appetite for risk and oil:
Oil futures fell sharply during trading, boosted by recession expectations for the US economy, as well as the euro-zone economy.
It also declined with the significant increase in the number of new infections in China, which is the second largest consumer of crude oil in the world.
The impact of risk appetite on currencies and commodities:
Risk appetite and the US dollar: – which measures the performance of the US currency against the 6 major currencies – fell by 0.11%, to 104.70 points.
Risk appetite and gold: Prices fell 0.2% to $1,793.70 an ounce and bullion futures prices fell 0.27% to $1,805.40 an ounce.
Risk appetite and Oil: Crude futures prices fell 0.70% to $75.56 a barrel and West Texas Intermediate crude prices fell 0.42% to $70.72 a barrel.
