The trading week ending Friday, January 29th witnessed a number of events that strongly affected the performance of the most important commodities and major currencies. Last week’s trading interrupted the first meeting of the Monetary Policy Committee at the US Federal Reserve, and the week witnessed new developments regarding the situation of the Coronavirus as well as strong tensions in The global stock market. The following are the most important events that affected the most important markets during the day.
US Federal Reserve interest statement
Last week witnessed the first meeting of the US Federal Reserve’s monetary policy committee, and the Federal Reserve decided to maintain interest levels at 0.25% while keeping monetary policy as it is while continuing to increase the procurement program at a minimum of $ 80 billion per month until more economic results emerge and clearer. .
US stimulus package developments
The deliberations of the American financial stimulus package witnessed tensions during the past week between the Democratic and Republican members. Some speculation has gone that the coming days may witness the presentation of a proposal before the House of Representatives in order to approve a partial stimulus package that could be welcomed by some Republicans, and against the background of that proposal, the White House economic advisor said Brian Diez that the needs of the American people are not partial and that small financial support cannot be established.
On the other hand, Chuck Schumer, leader of the Democratic majority in the US Senate, said that the Senate will work on the US stimulus package as of the beginning of next week, and Schumer stressed that the situation needs to approve a stimulus package as soon as possible and that the Democratic Party will continue on this path even if it does not agree Republicans.
Stock indices are down strongly
Corporate profits during the fourth quarter of 2020 came below market expectations for most companies, as the aviation giant Boeing announced losses of more than $ 11 billion during 2020, which is the worst loss for the company in its history. Despite the high profits of technology companies, who are the biggest beneficiaries of the Corona crisis and the restrictions of the closure, the profits of some companies such as Tesla came below expectations, and that data negatively affected stock indices in global markets in general.
The US President issues a decision to stop the new drilling operations
Where President Joe Biden issued a decision to stop new exploration operations in the federal states, and the Executive Director of the American Petroleum Institute said that this decision means that the President wants to reduce the consumption of American crude oil in exchange for greater dependence on oil coming from abroad, especially since the coming period will witness strong consumption of oil. With the economic recovery.
How these events affected the performance of the markets
Gold prices opened the trading session this week at levels of $ 1,855.80 an ounce and rose during the week to reach levels of $ 1,875.73 an ounce, while the lowest level was at $ 1,831.42 an ounce, and in recent hours, spot contracts for gold reached levels of $ 1,858.70 an ounce, slightly up by 0.19 % Versus last week.
During this week, the USD index, which measures the performance of the US dollar against about 6 major currencies, increased by 0.32% compared to last week, and during the last hour, the USD index reached 90.32 levels, with a daily increase of 0.02%.
American stocks: Immediately after the release of the quarterly earnings reports, US stocks fell by 2%, but the positive data of some companies limited the decline in stocks, but US indices are still declining by more than 2% on a weekly basis, as the Dow Jones index fell by 2.54%, while Both the S&P and the Nasdaq index fell 2.65% each.
European stocks: European stocks recorded a collective decline at the end of the week’s trading, led by the British FTSE 100 index with a loss of 4.30%, followed by the German DAX 30 index and the Spanish IBEX 35 index by 3.10% and 3.49%, respectively. The Italian FTSE MIB index and the French CAC 40 index were the least losing, recording a decline of 2.27% and 2.79%, respectively.
The various influences on oil prices during the week caused Brent crude prices to fluctuate around $ 55.12 a barrel, to record a 0.09% decline during the week, while US crude oil prices rose 0.40% to settle at $ 52.27 per barrel at the end of trading.