Market Update

European shares fell on Thursday, affected by increased expectations that the Federal Reserve will raise interest rates again after a sharp rise in the inflation rate in the United States, while the main index in Italy fell 1% as the risk of a government collapse increased. The pan-European Stoxx 600 …

Oil prices fell on Thursday as investors doubled down on bets that the US central bank would raise interest rates, which would control inflation and curb oil demand. Brent crude futures for September were down 20 cents, or 0.2 percent, at $99.37 a barrel by 0010 GMT, having gained nine …

The International Energy Agency said on Wednesday that the global oil market was walking a “tightrope” between a supply shortage and a possible economic recession, with demand already affected by higher prices and deteriorating economic conditions. Rarely has the outlook for oil markets been more uncertain. A worsening macroeconomic outlook …

The Bank of Canada hiked its policy interest rate by 100 bps to 2.5% in July, compared to the market expectation for a rate increase of 75 bps. The BOC acknowledged that it had underestimated inflation since the 2021 spring because of global factors. USD/CAD slid to 1.2933, and trades …

In the UK, the Royal Institute of Chartered Surveyors will publish its house price balance, also for the month of June. The European data calendar will light with only consumer price data for June due out in Finland, Ireland and Sweden.All eyes on Thursday will focus on the US inflation …

“I haven’t seen any solid proof that inflation has reached its peak,” said Cleveland Federal Reserve President Loretta Mester said while speaking at the Bloomberg interview.Mester’s comments exert downside pressure on the EUR/USD as it fades the previous day’s corrective pullback while retreating to 1.0050 during the early Asian session …

The yield on the benchmark 10-year note slid by 0.05 percentage points to 2.91 per cent. The two-year yield has been higher than the 10-year yield since last week. This occurrence is widely known in the market as “an inverted yield curve” and constitutes a closely watched signal of recession …

WTI crude oil is under pressure although both OPEC and the IEA issued warnings that the global energy supply crisis could continue for some time during 2022. Oil is struggling to find direction and is running into some supply difficulties during midday trading session. Oil price is up by 0.5% …

According to the Fed’s Beige Book, released on Wednesday, wages and other prices gains were seen across most of the 12 districts. As for the overall economic outlook; the Fed said that the US economy grew at a modest pace since mid-May but several of the central bank’s regional districts …

Richmond Federal Reserve president Thomas Barkin told Wall Street Journal that he believes headline and core inflation is too high.“I definitely see signs of softening,” Barkin said, with the evidence “most pronounced in lower income households” and in parts of the economy that saw demand surge during the pandemic.Barkin also …