Weekly Market Recap – July 22, 2022
The European Central Bank raised its three interest rates by half a percentage point. Mario Draghi resigned from his position as Italy’s prime minister. Ayatollah Ali Khamenei, Iran’s supreme leader, met with Vladimir Putin and issued a proclamation of support for Russia’s war on Ukraine. On Thursday, the White House announced that President Biden had tested positive for COVID-19 and was experiencing mild symptoms. The heat wave in Europe sent the temperature in London to 40.3℃ (104.5℉) for the first time in recorded history. In the U.S., extreme heat is affecting millions of Americans.
The monthly economic statistics released during the week were: existing home sales 5.12 million vs. 5.41 million, housing starts 1.56 million vs. 1.59 million, building permits 1.69 million vs. 1.70 million, the National Association of Home Builders’ index 55 vs. 67, and leading economic indicators -0.8% vs. -0.6%. Weekly stats were initial jobless claims at 251,000 vs. 244,000 and continuing claims at 1.38 million vs.1.33 million.
Stock markets recovered throughout the week. The three indices we monitor all regained levels not seen since early June. DJIA rose to 31.899.29, a 2.0% increase from the previous Friday. The S&P 500 went out at 3,961.63 (+2.5%), and the NASDAQ Composite ended at 11,834.11 (+3.3%). Volatility subsided as the CBOE VIX fell to 23.03 (-5.0%). In currencies, USD index futures closed at 106.621 (-1.2%). The commodity sector firmed a bit (+0.8%), as per the S&P GSCI, which finished at 663.45 at the week’s end.
All six metals futures on our radar improved. Settlement prices and weekly percentage increases were: gold at $1,727.40 (+1.4%), silver at $18.617 (+0.1%), platinum at $867.20 (+4.4%), palladium at $2,018.80 (+10.4%), copper at $3.3495 (+3.6%) and aluminum at $2,475.50 (+5.7%).
In energy markets, the futures we report here were mostly stronger for the week. Closing values and their respective movements were as follows: WTI crude at $94.70 per barrel (+0.0014%), Brent crude at $103.20 (+2.0%), heating oil at $3.4556 per gallon (-6.6%), RBOB gasoline at $3.2228 (+0.3%), NYMEX natural gas at $8.299 per MMBtu (+18.3%), and ICE TTF Dutch gas at €159.864 per MWh (+0.2%).
The directional movements of the nine agricultural futures we track were mixed, with five decreasing and four increasing. The contracts that lost value were: soybeans at $13.15¾ (-2.0%), corn at $5.64¼ (-6.5%), wheat at $7.59 (-2.3%), sugar at 17.89¢ (-7.1%) and cocoa at $2,297 (-1.0%). The gainers were: coffee at $2.0670), (+3.5%), cotton at 90.89¢ (+2.5%), live cattle at 137.375 (+1.8%), and lean hogs at 118.700 (+8.1%).
Futures Referenced in Market Recap
|ICE||Dutch TTF Gas||August|
|NYMEX||ULSD (Heating Oil)||August|
|LME||Aluminum||3 Mo. Forward|
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