WTI rises to $83.74 after large inventory drawdown

Markets change direction after Powell’s dovish comments on inflation

By Nadia Elbilassy | @Nadia Elbilassy | 3 July 2024

Market open
  • Asian currencies stabilized after Fed Chair Powell's comments on inflation, seen as dovish by markets.

  • Gold prices climbed to $2,343 today ahead of the ADP non-farm payroll data.

  • Oil prices increased due to a large US inventory drawdown; Brent crude up 0.5% to $86.67, WTI up 0.5% to $83.19.


Asian currencies stabilized, following some overnight weakness in the dollar after Federal Reserve Chair Jerome Powell highlighted progress in inflation going down. Markets took that as a dovish tone pulling the stock market to further highs while the dollar softened.

Meanwhile EUR/USD pair rose to hover near 1.0758 up ahead of the next election round.
The Chinese yuan rose slightly, staying at its highest level since November. Weak purchasing managers index (PMI) data added pressure on the yuan.

Hong Kong and China equity markets were also mixed today, with Hong Kong equities outperforming. Tech and property sectors are in focus again, with tech stocks rising following a report that Apple is seeking to modify a Chinese court ruling in its favor.

Gold prices rose to $2,343 after Powell’s dovish tone and ahead of today’s ADP non-farm payroll data.

Oil prices have increased during APAC trading today due to a significant US inventory drawdown reported by the industry. Brent crude is up 0.5% to $86.67 per barrel, nearing the intraday high of $86.74. WTI has also risen by 0.5% to $83.19 after hitting $83.26.