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President Joe Biden told Russian Counterpart Vladimir Putin that the United States is prepared to launch strong economic measures in case Russia decides to invade Ukraine.
The Bank of Canada is expected to keep the major part of focused spotlight on inflation at its policy decision, as the country’s central bank is about to encounter an aggressive campaign in favour of interest rate hikes.
Policy makers led by Governor Tiff Macklem are unlikely to raise their benchmark overnight rate on Wednesday, but the central bank has already ended a bond-buying stimulus program and hinted at an accelerated time-line for beginning to increase borrowing costs.
Iraq’s oil minister said, Tuesday, that his country policy in OPEC is based on reservations about the unjustified increase in production. Iraq, OPEC’s second biggest producer, cannot afford a drop in oil prices and is seeking stability between supply and demand.
Although gold markets firstly fell during trading on Tuesday, the precious metal found enough buyers underneath to push it up. Spot gold was up 0.2% to $1,782.39 per ounce by 01:40 p.m. ET (1840 GMT). U.S. gold futures settled up 0.3% at 1,784.70. Gold is trying to stay in the consolidation territory it has been in for a while.
Economic Data
EU data failed to impress the traders, as the EU Q3 Gross Domestic Product was confirmed at 2.2% QoQ.
Q3 2021 TransUnion Credit Industry Insights Report (CIIR) was released on Tuesday, showing increased consumer credit activity as the economy reopened in Canada. Credit Industry Indicator (CII) rose to 101.7 points, up eight points from Q2 2021 and up 38 points from the lowest point in the pandemic, August 2020 at 63.6.
The US Energy Information Administration has raised its forecast for 2022 world oil demand growth by 200000 barrels per day (BPD).
Optimism about the U.S. economy registered its biggest bounce in more than a year in December, after sinking to COVID-era lows a month earlier. The IBD/TIPP Economic Optimism Index, an early monthly read on consumer confidence, jumped 4.5 points to 48.4. Still, the index remained in modestly pessimistic territory. Readings above the neutral 50 level reflect optimism.
Ivey PMI, which is released by the Richard Ivey School of Business on a monthly basis and depicts the business conditions outlook in Canada, has remained at 61.2 in November after also posting the same reading 61.2 in October.
Other Developments
Republicans leaders have declared for months that they will not vote with Democrats to raise the debt ceiling. Top lawmakers may have found a new way for Democrats to hike the borrowing limit before 15 December, the date when the Treasury will no longer be able to pay its bills.
The process would be complicated and is not free of risks. If the House and Senate can pull it off, Washington would quash the risk of a default that could wreak on the global economy and stock markets.
Lawmakers would pass a provision in the health-care bill that would allow the Senate to increase the debt ceiling one time with a simple majority vote.
Cryptocurrency mining stocks recorded gains, on Tuesday, due to a price rebound among cryptocurrencies including Bitcoin ( BTC -0.08% ), in addition to the hotter than normal stock market. The S&P 500 was up 2%, which is a big move for a single day. And Bitcoin is up 4% over the past 24 hours and up around 14% from its weekly low.
Hopes that the Omicron coronavirus variant is milder and will not interrupt the economic comeback sent global shares well into the green territory.
The EUR was the weakest USD rival, while the AUD and the CAD were the strongest. The dollar advanced modestly against safe-haven CHF and JPY, with the pairs confined to tight intraday ranges while gold ticked higher but held within familiar levels at around $1,785 a troy ounce.
