An additional oil rig was introduced to the US sector at the end of the previous week, according to records from Baker Hughes. Currently, there are 595 total rigs, up from 376 in 2021.
According to JP Morgan, the price of crude oil might reach as high as US$ 380 per barrel in the worst-case scenario. Although Brent is marginally over US$ 111.50 per barrel, the WTI futures contract is a little under US$ 108.50 per barrel.
Following the advances of almost 1% for the major indices on Wall Street on July 1, APAC stocks mainly experienced a favorable day. The major index with the underwhelming performance was Hong Kong’s Hang Seng Index (HSI), which was a little over 0.5% lower.
Even though the Australian Dollar stabilized on July 4 after plummeting on July 1, the expansion of Covid cases in China contributed to the decline in the outlook. The market anticipates that the RBA will raise the cash rate by 50 basis points to 1.35 % at its upcoming meeting.
Copper, nickel, ore, and iron are all substantially lower as industrial metals remain under pressure. Gold’s price per ounce is roughly US$ 1,811.
After the entire curve for Treasury bonds shifted lower, developed market rates in Asia kept declining. The 5-year fell 16 basis points to 2.88 %, experiencing the biggest drops. Trading at 3.5 %, the Australian 10-year bond is 9 basis points less.
Despite persistent criticism from speculators who are wagering on the fact that the bank will not be able to hold rates down if price pressures keep increasing, the Bank of Japan is firmly preserving yield curve management. Near the most current 24-year peak of 137.00, the USD/JPY is currently trading around 135.00.
The Swiss CPI data and Canadian PMI numbers will be issued by the end of the day.
WTI crude oil has risen over the 100-day simple moving average (SMA), indicating that bullish sentiment may be emerging in the market.
