Financial markets witnessed violent movements during trading on Monday, amid rising fears of the repercussions of the trade war between the United States and its trading partners, as well as the market's anticipation of the US Federal Reserve's meeting minutes and the upcoming inflation data, which are expected to shape the monetary policy in the coming phase.
The US dollar continues to rise supported by employment data and upcoming inflation expectations The US dollar recorded strong gains today, as the dollar index rose by 0.40% to reach 103.29 points. This increase was driven by strong US labor market data released at the end of last week, which bolstered expectations of maintaining high-interest rates. Investors are also closely monitoring the expected inflation data this week, as it has a direct impact on the Federal Reserve's upcoming monetary policy decisions.
Oil prices drop amid growing concerns about weak global demand Oil prices fell significantly during today's trading, amid expectations of weak global demand as fears of a potential economic recession grow. West Texas Intermediate crude futures dropped to $60.82 per barrel, while Brent crude futures declined by 2.44% to approximately $64.34 per barrel, reflecting investors' concerns about the slowdown in global economic growth and its impact on energy consumption.
Gold loses its luster as the dollar rises and expectations of tightening monetary policy grow Gold prices continued to decline today, affected by the rise of the US dollar and increasing expectations of keeping interest rates high for a longer period. Gold futures fell by 2.39% to reach $2,965 per ounce, amid a decline in demand for gold as a safe haven with the improvement of economic indicators in the United States.
Bitcoin drops, joining the global selling wave Cryptocurrencies were also affected by the selling pressures that hit global markets, as Bitcoin dropped by 0.79% to record around $78,000. This decline comes amid a wave of concern over a potential global economic recession due to the rising trade dispute between Washington and several of its partners, negatively impacting risk appetite in financial markets.
US stock indices tumble under the pressure of potential recession The main indices on Wall Street ended their sessions with clear declines, amid investor fears of a potential economic recession in the United States. The Dow Jones Industrial Average fell by 1.28% to close at 37,823.95 points, while the S&P 500 declined by 0.43% to 5,052.43 points, and the Nasdaq dropped by 0.22%, registering at 15,553.59 points.
