Oil prices fall amid Iran-Western talks - 12.6.2023

Mary Wild

Senior Analyst

Articles:249

Todays’ Market Summary

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Forex news

On Friday, the US dollar index slightly increased with the absence of significant economic statistics. Market participants are likely cautious and not expecting major movements in the forex market ahead of the Federal Reserve meeting on June 14th. This morning, the US dollar index is declining in anticipation of the release of the United States Federal Budget Balance for May. While it is not a highly important indicator, it could have a negative impact. This morning, Japan's Bank of Japan (BoJ) Corporate Goods Price, which measures industrial inflation, was released for May. It decreased to its lowest level since June 2021, reaching 5.1% YoY, which could be a negative factor for the yen as it reduces the likelihood of BoJ tightening monetary policy at the June 16th meeting Friday morning. Today, data on China's People's Bank of China (PBC) New Loans for May will be published, with a positive forecast for the yuan.

Bitcoin prices have resumed a sluggish decline, currently hovering around $25,800. Market participants are trying to anticipate the further development of the situation following the U.S. Securities and Exchange Commission's claims against cryptocurrency exchanges Binance and Coinbase. Hong Kong authorities have offered cryptocurrency exchange Coinbase and other trading platforms to register in their city. It's worth noting that Bitcoin's price has only decreased by 3.5% in the last 7 days, much less than other cryptocurrencies.

Stock Market news

On the last day of the past week, U.S. stocks continued to rise. The main reason for the increase is the expected pause in the Federal Reserve's interest rate hike (5.25%). On Friday, Tesla shares rose by 4% following the announcement that automaker General Motors (+1.1%) has agreed to use its electric vehicle charging network (Supercharger network). Investment company Wells Fargo raised recommendations for Adobe Systems' stocks, resulting in a 3.4% increase. Goldman Sachs also raised recommendations for Braze stocks, which surged by 16%.

Commodity Market news

This morning, oil prices have been declining for the third consecutive day, with WTI dropping below the $70 per barrel mark. The reason for this is a statement from Iranian authorities suggesting that a "nuclear deal" with Western countries is possible if there is no interference in Iran's nuclear industry. Iran could significantly increase its oil exports if the nuclear deal is successful.

Natural gas in Europe on ICE Dutch TTF has risen to $335 per 1000 cubic meters. The quotes for American gas at Henry Hub have slightly decreased to $2.285 per million metric British thermal units (mmBtu).

Gold Market News

Gold prices this morning are attempting to stay above the $1965 per ounce mark for the 6th consecutive day. The presence of demand for precious metals can be noted amid the weakening of the U.S. dollar. The yield on the U.S. 10-year Treasury note is currently staying at 3.755% per annum for the third consecutive day.