U.S. stocks closed higher on Monday as investors expect the FED to keep interest rates unchanged during the upcoming FOMC monetary policy meeting.
All three major indexes extended their advance at the beginning of this week.
The Dow rose 0.56%, moreover, both the Nasdaq composite and the S&P500 climbed 1.53% and 0.93% respectively, reaching their highest levels since April 2022.
Meanwhile, Tesla posted its 12th straight day of gains.
Later today, the focus will shift to the latest inflation data figures from the U.S.
The monthly reading of the consumer price index is expected to have declined in May from 0.4% to 0.2%. In Europe, traders will be looking for employment figures from the UK.
The claimant count change is set to fall from 46.7K down to 21.4K while the unemployment rate is likely to increase from 3.9% to 4.0%. In addition, BoE Governor Bailey is due to speak.
In the FX Market, the U.S Dollar traded sideways as investors remain cautious about the future of the monetary policy. In the meantime, Gold continues to fight for a clear direction in the near term. As mentioned in our previous reports, a clear break outside of the current range located between the $1985 resistance and $1935 support is needed to confirm the next direction in the yellow metal. Until then, the gold trend is expected to remain neutral.
On the other hand, Oil prices fell more than 4% on fear of global economic recession.
Moreover, Goldman Sachs revised its Oil price forecast by almost 10% on the back of weaker demand from China coupled with abundant supply from Russia and other sanctioned countries.
The WTI crude extended its decline on Monday after breaking below the psychological support of $70 a barrel ending yesterday’s trading near the $67 mark. The current drop has pushed prices to settle at the lowest levels since March.
Economic Analyst
Amine Hiani