Asian and European Markets Rise as Gold Falls and Dollar Strengthens Amid Easing Middle East Conflict Fears

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ICARO Media Group
News
22/04/2024 22h20

In the world of global markets, Asia ex-China and Europe witnessed a positive start to the week, while gold prices declined and the U.S dollar gained strength due to diminishing concerns about escalating tensions in the Middle East. Here's a roundup of the market movements while the U.S. slept:

Gold traded lower by 1.66% at $2,373.75, reflecting a dip in investor demand for the precious metal. Similarly, silver declined by 3.33% to $27.883, as market sentiment shifted towards other investment opportunities.

In Asia, Japan's Nikkei 225 index concluded the trading day higher, recording a 0.99% increase at 37,459.50. This positive momentum was driven by gains in sectors such as mining, chemical, petroleum & plastic, and warehousing.

Australia's S&P/ASX 200 also saw a surge, gaining 1.08% to finish at 7,649.20, led by strong performances in the healthcare, telecoms services, and IT sectors. India's Nifty 50 and Nifty 500 indices closed higher by 0.86% and 0.93% respectively, pointing to increased investor optimism.

On the other hand, China's Shanghai Composite slid by 0.67%, ending the session at 3,044.60, while the Shenzhen CSI 300 fell by 0.30%, closing at 3,530.90. Hong Kong's Hang Seng Index, however, managed to gain 1.77%, concluding the day at 16,511.69.

In Europe, the markets also showed positive signs. The European STOXX 50 index was up 0.47%, with Germany's DAX gaining 0.66% and France's CAC increasing by 0.32%. The U.K.'s FTSE 100 exhibited the strongest growth, trading higher by 1.46%.

Turning to commodities, crude oil prices experienced a decline on Monday as Israel and Iran downplayed escalation risks following Israel's limited strike on Iran. Crude oil WTI was trading lower by 0.67% at $81.67/bbl, while Brent dropped by 0.63% to $86.75/bbl.

In the currency market, the U.S. dollar index rose 0.03% to 106.19. The USD/JPY pair rose 0.07% to 154.74, indicating a stronger dollar against the Japanese yen. Conversely, the USD/AUD pair declined by 0.38% to 1.5531.

These market movements reflected a shift in investor sentiment as fears of further conflict in the Middle East eased. However, anticipation regarding a forthcoming rate cut by the Federal Reserve remained a factor influencing market moods.

In conclusion, Asia ex-China and Europe experienced overall positive market movements, with stocks rising and gold prices, along with silver, declining. The U.S dollar strengthened against the yen and the Australian dollar. As the week progresses, market participants will closely monitor developments in the Middle East and central bank actions for further insights into market direction.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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