The performance of the share market in the Asia-Pacific region is optimistic. The investors were monitoring the movement of the commodities sector. The strengthening of the US dollar triggers certain impacts that have to be monitored. There are a myriad of factors that steer the sentiments of the investors and businesspersons. Concern about inflation, condition of the US dollar, commodity prices and the value of other currencies are the key factors. The stocks related to energy roared, and the figures were the best in the last three decades. The demand for oil is rising due to the reopening of various sectors.
The analysts, policy makers and strategists are aware that normal investors proceed forward only after analyzing the risks. The US Federal Reserve has already expressed concern regarding inflation. Subsequently, it has moved forward with an interest rate hike. This step has triggered a surge in the Dollar index. After a recent climb, the US dollar index was standing at 92.36. In Asia, currencies such as the Japanese Yen are performing impressively. It was traded at 109.71 per Dollar. Japan has successfully defeated the pandemic and its economy is still on the track.
In the third week of June, it was seen that oil prices were touching new heights. The US crude futures were seen advancing by 0.6% and were standing at $72.07 per barrel. The sources of the OPEC confirmed that they are expecting limited US oil output growth, although the prices are rising. Now, the group is confident that they can manage the market due to the growth of their power and influence. By 2022, the sales output is expected to touch record heights. Recently, Brent crude futures have risen by about 39 cents. It was standing at $73.47 a barrel. In the third week, it was observed that Brent touched its highest price after April 2019. The gain was mildly affected due to concerns about the pandemic and the strengthening of the US dollar. All these factors enhanced the price of oil in other currencies. The benchmarks were seen on track with a weekly gain.
The senior analysts are aware of the possible cause of the rallying in the oil markets. OPEC is skeptical about the plans of the US oil production. Some energy firms in the US are once again back at the well pad due to the surge in oil prices. The oil rig count stands at 373 after some addition. It is the highest since April 2020. It is being observed that the price of industrial metal, crude oil and other commodities are rising. The economies of countries like China and the USA have fully recovered.
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