Financial markets are under pressure: explore the current state of the U.S. dollar, crude oil, and gold prices
In the financial world today, a mix of positive and negative trends emerged across various markets.
Oil prices took a dip due to weak demand and expectations that the Federal Reserve will soon cut interest rates. This move is believed to ease pressure on household spending and investments. The price of October WTI crude futures fell by 0.84% to $63.98 per barrel, while November Brent crude futures decreased by 0.77% to $67.94 per barrel.
Meanwhile, Asian markets showed a mixed performance. The Nikkei 225 index fell by 0.17% due to weak Japanese export data, with exports decreasing for four consecutive months, particularly affecting the auto industry and chip equipment due to high U.S. tariffs. On the other hand, Chinese stock indices, the Shanghai Composite (+0.37%) and Hang Seng (+1.78%), closed in the green, driven by optimism around the tech sector and expectations of a U.S. interest rate cut and easing of trade tensions.
European markets largely showed negative performance, with uncertainty about the Fed's decision on interest rates, pressure on export-oriented companies from a strong euro, and potential trade and geopolitical headwinds. Among the major European indices, DAX (-0.16%, Germany), CAC 40 (-0.32%, France), and Euro Stoxx 50 (-0.17%, comprising the 50 largest and most liquid companies in the Eurozone) were in the red. Only FTSE 100 (+0.26%, UK) showed gains.
In the currency markets, the U.S. Dollar Index (DXY) strengthened by 0.18 percent as investors sought safety in USD ahead of the anticipated Fed rate cut. Following trading on the Kazakhstan Stock Exchange (KASE) at 17:00 AST, the average USD exchange rate was 541.13 tenge, up by 1.37 tenge. However, it's important to note that the average USD exchange rate in Astana exchanges is lower than in Almaty exchanges. In Almaty exchanges, the US dollar is bought at an average of 540.81 tenge and sold at 542.68 tenge, while in Astana exchanges, the US dollar is bought at an average of 539.49 tenge and sold at 544.65 tenge.
President Kassym-Jomart Tokayev announced the creation of a state fund for digital assets on September 8. This announcement comes as several institutional investors and treasury companies increased their investments in cryptocurrencies. Notably, MicroStrategy purchased 3,081 BTC for $357 million, reinforcing its position as the largest corporate Bitcoin holder during this period. The price of Bitcoin (BTC) rose by 0.75 percent due to expectations that the Federal Reserve will soon lower interest rates. Ethereum (ETH) also saw a slight dip, falling by 0.22 percent to $4,494.98 per coin.
Gold started to decline as many investors decided to take profits after it reached a record high, with gold futures falling by 0.58 percent to $3,703.45 per ounce. However, no information was provided about the possibility of 1000 tenge to 1 USD.
The official rate set by the National Bank of Kazakhstan on September 17 is 539.54 tenge per USD.
China's cybersecurity management has banned the purchase of Nvidia chips linked to AI, which could potentially impact the tech sector.
These developments underscore the dynamic nature of global markets, with various factors influencing their performance on a daily basis. As always, investors are advised to stay informed and make decisions based on careful analysis and consideration.
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