Investors’ sentiment remains positive as US equities rise. The dollar fell for the fourth session in a row although it remained at high levels.

A softer US Dollar and supply fears due to the Russian oil embargo bolstered the black gold.

The UK Consumer Prices Index (CPI) 12-month rate came in at 9.4% in June when compared to 9.1% seen in May while beating estimates of a 9.3% print, the UK Office for National Statistics (ONS) reported. The possibility of a more hawkish ECB, alongside aggressive policy tightening expectations from several other countries, are pressuring the dollar, which now stands more than 2.5% below a 20-year high hit last week.

Equities:

- Wall Street closes sharply higher on Tuesday as more companies joined big banks in reporting earnings that beat forecasts, offering respite to investors worried about higher inflation and a tightening Fed denting the corporate bottomline.

- The Dow Jones Industrial Average rose 749 points, or 2.41%, to 31,852, the S&P 500 gained 105.83 points, or 2.76%, to 3,936.69 and the Nasdaq added 402.4 points, or 3.38%, to 12,293.6.

- Johnson & Johnson shares lost 1.5%, reversing earlier gains. A strong dollar also weighed on shares of IT hardware and services company IBM Corp., which beat quarterly revenue expectations but warned that volatility in this year's Forex market could cost more than $3.5 billion.

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Currency Market:

- Sterling steadied on Wednesday against the dollar as data showed British inflation climbed to its highest rate in 40 years, but only slightly above forecast.

- Sterling was flat at $1.2000 against the U.S. dollar , after climbing to an11-day high on Tuesday.

- The euro held near two-week highs versus the dollar on Wednesday on expectations of a bigger ECB interest rate increase this week than earlier anticipated.

- Euro firmed as much as 0.5% to $1.02730, the highest since early June, before easing off those levels. It also rose 0.25% against sterling, to 85.4 pence.

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Commodities: Gold

- The precious metal fell as fears of monetary policy tightening and an increase in treasury yields dispelled relief from the dollar’s decline.

- Gold fell in spot transactions 0.3% to $1,706.85 an ounce. As for other precious metals, there was little change in silver in spot transactions, and it remained at $18.74 an ounce.

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Commodities: Oil

- Oil markets have been trading volatile in recent weeks, as fears of a worldwide recession would diminish demand, but also weighed by a strong US Dollar.

- US President Joe Biden’s visit to Saudi Arabia did not result as expected.

- WTI crude oil is advancing during the week and is erasing last week’s losses, gaining almost 7% at $100.95 BPD.

- Brent crude also benefits from the increased the appetite for more energy which remained below $100 for three successive days. Brent  is trading above $106 BPD.
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