Daily Market Brief 22-11-22

January 31, 2023: Oil, Indices, and Gold Decline Ahead of FOMC Meeting Today

Japan’s Nikkei Closed Lower.

The Japanese Nikkei index closed lower on Tuesday, January 31, with investors awaiting the results of the Federal Reserve’s monetary policy meeting and in light of corporate business results that showed mixed trends. The Nikkei fell 0.39%, ending the trading session at 27,327.11 points after it initiated the session with a high. The index achieved a monthly gain of 4.72%, the best monthly performance since October. The Topix index fell 0.36% to 1975.27 points.

Among the performance of individual Japanese stocks in today’s session, Canon shares lost nearly 1.85% after expectations of annual operating profits for the camera maker disappointed investors.

However, Oriental Land shares jumped 3.45% after the Tokyo Disney Resort operator raised its annual net profit forecast.

Nissan Motor rose 2.07% after the Japanese automaker and its French partner Renault announced a radical restructuring of their two-decade-old alliance, putting the two companies on equal footing.

The banking sector lost 2.28%, which made it the worst performer among the sub-sectors, followed by the oil exploration companies sector, which fell by 1.83%.

Russia Prohibits Domestic Oil Exporters from Abiding by Western Price Ceilings.

The Russian government has precluded domestic oil exporters and customs authorities from complying with price ceilings imposed by the West on its crude oil.

The decision was issued on Monday to help implement President Vladimir Putin’s decree banning the supply of crude oil and its derivatives starting February 1, for five months, to countries that adhere to the price cap.

The new Russian decision prohibits companies and individuals from including oil price ceiling mechanisms in their contracts. They must also inform customs officials and the Department of Energy of any attempts to impose a price cap. In addition, customs authorities are required to prevent shipments from leaving Russia if they find such mechanisms have been implemented.

As of February 5, the West intends to impose two ceilings on the prices of Russian oil products, one on products traded at a premium to crude oil prices, such as diesel or gas oil, and the other on products sold at a discount to crude oil prices such as fuel oil.

Gold Prices Fall, yet on the Way to Closing the Third Month of Gains.

Gold prices fell Tuesday but are heading for gains for the third month in a row while investors await the Federal Reserve’s interest rate decision tomorrow, Wednesday.

Spot gold fell beneath $1910/ounce but is heading for a monthly gain of more than 5%. US gold futures also fell by 0.88% to $1905/ounce. The price decline comes while the dollar index is witnessing stability while heading simultaneously to record a slide for the fourth month. 

Most traders expect the Federal Reserve to scale back interest rate hikes to 25 basis points on Wednesday at the end of its two-day monetary policy meeting. The US “Fed” slowed the pace to 50 basis points in December after raising interest rates by 75 basis points four times a row.

Regarding other precious metals, silver fell in spot transactions to 23.43 dollars an ounce, platinum fell to 1003.51 dollars, and palladium rose 0.2% to 1641.08 dollars. The three metals are heading for a monthly decline.

Oil Prices Head Towards Recording a Monthly Loss.

Oil prices fell during Tuesday’s session, heading towards recording a monthly loss of more than 3% before the start of the Federal Reserve meeting, and with anticipation of more signs of seeing energy demand in China. The Federal Reserve is the primary driver of sentiment this week, and oil continues to track financial markets as supply and demand fundamentals appear to be broadly balanced.

An advisory committee of OPEC+ ministers will review production policy later this week, although the policy is expected not to change.

Brent crude futures for April delivery were down 0.5%, or 42 cents, at $84.08 a barrel. US crude futures for March delivery also fell 0.58%, or 45 cents, at $77.45 a barrel.

Technology Stocks and Major Companies Push Wall Street Indices Lower. 

The leading US stock indices fell on Wall Street yesterday, Monday, affected by declines in technology stocks and other major companies. At the same time, investors await central bank meetings and several corporate earnings report issuances.

According to preliminary data, the S&P 500 index fell by 52.79 points, closing at 4018 points. While the Nasdaq Index fell 227.89 points to 11393.81 points. The Dow Jones Industrial Average increased 260.99 points to 33,717 points.

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

Share on facebook
Share on twitter
Share on pinterest
Share on email
  • All
  • Blog
  • Economic Events
  • Featured Articles
  • Learn to Trade
  • Market Analysis
  • Market Analysis
  • News
  • News
  • OneRoyal News
  • Press Releases
  • Uncategorized
  • أخبار OneRoyal
  • الأحداث الاقتصادية
  • تحليل الأسواق
  • تصريحات صحفيه
  • تعلم كيف تتداول
  • غير مصنف
  • غير مصنف
  • مقالات مميزة

Gold rises ahead of US inflation data, could reach $2400 in this case

Read More →

Newest From Category

Newest from