Global Markets Analysis
3 June 2022
Global financial markets succeeded in completing the day with optimism, which they started off gloomy yesterday. We think that OPEC+'s agreement to increase crude oil production to compensate for the decline in Russia's oil production played a large part in this. The barrel price of Brent crude oil, which rose to the level of 125 dollars in the middle of the week, completed the fluctuating day at the edge of 118 dollars yesterday.
OPEC+, which is formed by countries acting together, including Russia, agreed to increase oil production by 648,000 barrels per day in July and August. The increase in production growth rate by OPEC+ was also effective in changing the mood of the markets yesterday. The rise that started in the European stock market indices also spread to the US stock markets. The technology exchange Nasdaq, which is an indicator of risk appetite, closed the night with an increase of 2.7%.
As the markets switched from risk-off mode to risk-on mode, the dollar index (DXY) also regressed, while the EURUSD parity rapidly increased to 1.0750. In this context, we saw that Bitcoin, which kept pace with the weather, rose again above the level of 31 thousand dollars. From a technical point of view, a rise to 34,400 above in Bitcoin, which has survived the $ 28,800 level, would not surprise us. We are in a day where the weekly closing will be important for gold and silver. Both precious metals managed to rise above the levels of 1,860 and 22 dollars, which came to the fore in technical terms, with a sharp reaction rise yesterday. If the uptrend is confirmed by the weekly close, our tone for the week will be positive.
The data released yesterday in the USA remained on the weak side in general terms. For example, before the official employment data announced on the first Friday of every month (today), the private sector employment announced yesterday could not meet the expectation (300 thousand), pointing to an increase of 128 thousand people. Despite the weak data, it seems certain that the FED will increase interest rates by 50 basis points each in June and July in order to fight inflation, and the future is unknown for now.