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World News Round up

🔴Saudi Arabia raises the official selling prices of crude oil to its customers in Asia

According to what was reported by Bloomberg News Agency, the Kingdom of Saudi Arabia raised the prices of oil destined for its customers in Asia for the third month in a row, and in this regard, the official selling price of diluted Arab crude in Asia rose by 90 cents to $2.90 per barrel for next June (higher than the Oman index - Dubai Regional).

Also, Bloomberg revealed that the prices of other lighter and heavier grades rose as of next May, while expectations indicated an increase in the official selling prices of diluted Arab crude to Asia by only 60 cents.

🔻Fitch assesses the risk of high interest rates on US credit

In its quarterly US credit brief, global credit rating agency Fitch said high interest rates could pose a key risk to US credit, noting that persistent inflation has renewed uncertainty about the timing of interest rate cuts by the US Federal Reserve.

In a related context, the agency indicated the possibility of a soft landing scenario occurring, as growth and interest rates remain largely unchanged, which has led to increased credit risks.

Likewise, Fitch stated that it raised its forecast for real GDP growth in the United States for the current year from 1.2% in December 2023 to 2.1% in March 2024, but stressed that it expects growth to slow to a rate well below trend later this year.

It is noteworthy that earlier, the credit rating agency Fitch raised its expectations for global GDP growth by 0.3% to 2.4% for the year 2024, but global expectations for next year remained unchanged at the level of 2.5%.

🟢The People's Bank of China sets the price of the dollar against the yuan at 7.0994

The People's Bank of China decided this Monday morning to set the yuan exchange rate against the US dollar at 7.0994 yuan per dollar, and expectations were that it would record 7.2127 yuan, after it closed last Wednesday, Thursday and Friday. The bank also pumped 2 billion yuan in repatriation operations. Buying in the markets for 7 days, with a return of 1.8%.

It should be noted that the Bank of China influences the price of the US dollar USD by linking the value of its currency (the yuan) to the dollar currency USD, as the bank uses a fixed exchange rate policy, which differs from the free exchange rate used by the United States and many other countries, leaving A margin of movement for the Chinese currency to move in a narrow range.

🟡ECB member Lynn: Inflation data made a rate cut certainty

As reported by Bloomberg News, European Central Bank member Philip Lane said on Monday that recent economic data in the euro zone made it certain that inflation would return to the central bank’s target of 2%, which enhances the possibility that the European Central Bank will make its first interest rate cut in... June, according to European Central Bank forecasts.

He pointed out that the preliminary estimate of inflation data for the previous month of April, in addition to the GDP data, increases his confidence that inflation should return to the target in a timely manner. Therefore, he said that as of the present time, my confidence has improved compared to our meeting in the previous April, but more will arrive. Economic data from now until next June.

🔴U.S. wins global leadership approval over China when a Democrat is president, Gallup analysis shows

Most countries prefer alignment with the U.S. over China when the White House is occupied by a Democrat, according to Gallup poll data going back to 2007.

“Significantly more countries seem to prefer U.S. leadership over Chinese leadership, at least under Democratic administrations,” Gallup said in an analysis released Monday, adding that a Republican executive comes with a “net approval disadvantage.”

Gallup’s report showed that in 2023, nearly half (48%) of the world’s countries leaned towards the U.S. as opposed to China — which was favored by 21% of the more than 130 countries polled. Over a fifth of the nations were found to be “strongly aligned” with the U.S., the highest rate since 2009.

Throughout most of the Trump administration, a larger share of countries had favored China, which changed as Democrat Joe Biden took office at the start of 2021.

🟢10-year Treasury yield holds below 4.5% after softer-than-expected U.S. jobs data

U.S. Treasury yields were lower Monday, continuing a fall after Friday’s April jobs report showed weaker-than-expected payrolls growth and an unexpected tick higher in unemployment.

🟢The yield on the 10-year Treasury was off 2 basis points to 4.4975%.

🟢The 2-year Treasury yield was slightly lower to 4.8056%.

➡️Yields and prices move in opposite directions. One basis point is equivalent to 0.01%.

🟢Stock futures rise to start the week on hope of Fed rate cuts

➡️U.S. stock futures rose Monday, with Wall Street looking to build on the previous session’s strong gains, after new jobs data revived hopes of the Federal Reserve cutting interest rates.

🟢Dow Jones Industrial Average futures climbed 83 points, or 0.2%.

🟢S&P 500 futures were 0.3% higher along with Nasdaq-100 futures.

The Dow, S&P 500 and Nasdaq Composite popped more than 1% each on Friday after fresh nonfarm payrolls data on Friday showed the U.S. economy added fewer-than-expected jobs in April and an increase in unemployment, easing fears of an overheating economy. Traders became enthusiastic that the Fed could start lowering rates sooner this year.

🔴A strong rise in gold prices at the beginning of the week’s trading...why?

Gold prices achieved a strong rise in the first trading of the week today, Monday, after they had reached their lowest level in almost a month during the past week, but the weak performance of the US dollar index, as well as the decline in US bond yields, led to a recovery in gold prices in terms of transactions, especially With negative US labor market data issued at the end of last week, which strengthened expectations of the possibility of the Federal Reserve reducing interest rates later this year, this in turn would affect the upcoming trading of both the US dollar and gold metal.