Markets are reaching their annual highs

Markets are reaching their annual highs


Global markets rose to their highest level since the beginning of the current year 2023, and concluded their fifth consecutive week with an increase, as their rise began since the end of last October, as the Dow Jones Index reached an area of ​​36,267 points, exceeding its highest level since the beginning of this year at 35,679, by a difference of more than 600 points, while the S&P 500 index reached its highest level this year at 4,600, and the Nasdaq index also rose to its highest level this year at 14,400.
What contributed to the rise in the markets significantly was the decline in the dollar index to the level of 102.5 points, as well as the decline in bond yields. The yield on ten-year bonds fell to near the 4 percent area, a decline of more than 17 percent from its peak achieved at 5.013. While the yield on two-year bonds fell to the level of 4.58 percent, a decrease of 13 percent from its peak achieved at 5.26 percent, gold also achieved a new historical peak at $2146 per ounce, surpassing its historical peak of 2081 that it achieved last May, and the metal was exposed Yellow is for profit-taking operations after achieving this peak, which are natural declines, and the gold metal still has the upward momentum to reach it again. The rise in markets in this way and the acceleration that occurred demonstrate the rise in investor sentiment due to the decline in inflation in the United States of America, which means that the Federal Reserve may maintain interest rates at current levels without having to increase them again, especially with the speech of Mr. Jerome Powell, which he saw a few weeks ago. That the policy is restrictive, while in his last statement he stated that the policy has largely reached the restrictive zone.
The tool that tracks investors’ opinions of interest rates by 55.4 percent indicates that the Federal Reserve will reduce them by 25 basis points at the Federal Open Market Committee meeting in March at the end of the first quarter of next year 2024, while the markets this week await important data for a number of indicators regarding the economy. The American data, which would restore momentum to the markets or bring them back to complete their downward waves, include: the services purchasing managers’ index, the change in private sector jobs, the trade balance, unemployment claims and their rate, and the Michigan Consumer Confidence Index. All of this data has importance and is related to the Federal Reserve’s movements and interest rate decisions, which has a direct impact and impact on the movement of markets and thus investors’ operations and the extent to which their risk appetite increases.
On the other hand, the Saudi market reached its third target at 11,200 points that we specified in our previous article on the second of last November, entitled “The Effects of Raising Interest in the Future,” as the market reached 11,242 points at the beginning of this week, and the market remains positive in its movement as long as it trades higher. From 10980. Therefore, when the markets reach areas of peaks and resistance from which they previously retreated, caution must be increased, as resistance areas are areas where offers exceed orders. On the other hand, oil prices are still in a bearish wave, despite OPEC Plus recently agreeing on additional extensions, and Brent crude is currently trading close to the last support areas at $76.5.

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