An active overnight session saw China’s banks lowering their one-year loan prime rate to 3.10% from 3.35% and reducing their five-year gauge to 3.60% from 3.85%. Gold touched a record high of $2,732.82 per ounce as Middle East tensions continue.
Looking ahead, Wednesday appears to be the busiest day data-wise. Tesla reports after hours, becoming the first of the Magnificent Seven tech companies to release earnings as the corporate season kicks in. The Fed will also publish its Beige Book, a readout on economic conditions in the central bank’s 12 districts. Today, Global Central Bank heads and Finance Ministers gather in Washington for the annual meeting of the International Monetary Fund and World Bank to discuss how countries can navigate low growth and high debt. Last week, the IMF warned that global public debt is forecast to exceed $100tn by the end of this year, driven primarily by the U.S. and China. Meanwhile, Russian President Vladimir Putin is hosting a summit of BRICS leaders starting Tuesday, as the Kremlin seeks support in its standoff with the West. Leaders from Brazil, India, China, South Africa, Egypt, the UAE, and Saudi Arabia are expected, representing a third of global economic output.
Market-wise, oil prices look set to remain under pressure after dropping around 7% last week. U.S. President Joe Biden mentioned on Friday that there is an opportunity to deal with Israel and Iran in a way that could potentially end their conflict in the Middle East for a time, though the gold price doesn’t reflect this sentiment. Bitcoin rose 0.4% to $69,064.57, Ether rose 1% to $2,738.18, the yield on 10-year Treasuries was little changed at 4.08%, Cable opens at 1.3030, and EURUSD is below the 200-day moving average at 1.0875.
**For professional investors only** Any opinions, news, research, analyses, prices, or other information contained in this blog is provided as general market commentary and does not constitute (and should not be construed as containing) investment advice or an investment recommendation, or an offer of, or solicitation for, a transaction in any financial instrument. Some of this information may have been provided by third-party sources and, although believed to be reliable, it has not been independently verified and its accuracy or completeness cannot be guaranteed. No representation or warranty, expressed or implied, is made or given by or on behalf of iSAM Securities or its directors or any other person as to the accuracy, completeness or fairness of the information or opinions contained in this blog, and no responsibility or liability is accepted for any such information. As a result, any person acting on any information does so entirely at their own risk. iSAM Securities will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.