Market highlights (week 27/2022)

The euro is sliding to new 20 year lows against the U.S dollar, dropping below 1.02$ this week and is heading toward parity according to analysts.

Exchange rates

Following the war in Ukraine, it is believed that, uncertainties on energy supplies and worries of a potential recession, have weakened the common currency of the Euro zone dropping below 1.02$ this week.

Investors are also buying US dollar these last few months as the currency is seen as a safe heaven in periods of crisis.

US markets

After the worst first half in 50 years, U.S stock markets started July on a solid footing. Investors were trying to assess how the positive jobs report would affect the FED as the Labor Department's data showed non-farm payrolls rising by 372,000 jobs in June and the jobless rate remaining near pre-COVID-19 lows at 3.6%.

All the three benchmarks finished the week on a positive note (S&P 500, DJIA and Nasdaq). Nasdaq recorded its longest winning streak since November.

U.S Treasury yields

Yields rose on Friday as the positive jobs report will likely keep the FED on its aggressive path against inflation. The yield on the benchmark 10-year Treasury rose about seven basis points to about 3.084%, while the yield on the 30-year Treasury bond was up five basis points at 3.254%.

European Markets

The pan-European Stoxx 600 closed the session almost 0.5% higher, with most sectors in the green. Autos were the top performer of the day, ending up 3.2%, while utilities closed 0.6% lower. European indices set the first two week winning streak since mid-March.

Oil

Oil rebounded on Friday but still ended the week on a loss due to the double digit plunge on Tuesday and Wednesday. New York traded West Texas Intermediate settled at 104.79$ while the London traded Brent crude settled at 107.02$. The rebound in oil on Friday came after the U.S positive jobs report, easing investors’ worries about the economy.