WIKIFX REPORT: Oil falling sharply last week

　　Oil has dropped sharply this week, with fears of a sharp global economic slowdown and its potential impact on demand appearing to move front, it is down more than 6% so far in August, and the Federal Reserve remains committed to a tighter policy to stifle inflation. The European Central Bank is also reportedly discussing a more aggressive policy move, even as an energy crisis intensified recession risks in the region. On the supply side, recent violent clashes in Libya and Iraq kept markets on edge, but oil production in both OPEC members was largely unaffected.

　　MARKETS

　　As of Wednesday last week, US stock futures rose after major averages fell for the third session in a row, as investors continued to grapple with the Federal Reserve's aggressive plan to crack down on inflation. Futures contracts linked to all three major indices were trading in positive territory. In after-hours trading, Chewy fell 11% as the pert goods retailer missed revenue estimates and offered weak forward guidance. HP also fell 6% due to weaker-than-expected revenue.

　　Similarly, in daily trading, on Tuesday last week, the Dow Jones was down 0.96%, while the S&P 500 and Nasdaq Composite each fell around 1.1%. All three benchmarks are on track to end August with losses, pulling back about half of the North American summer rally.

　　In the latest comment from the central bank, New York Fed President John Williams told the Wall Street Journal that he expects interest rates to continue higher and remain at those levels until inflation subsides, and He said that he, too, is in the high camp for longer when it comes to monetary policy.

　　COMMODITIES

　　WTI crude oil futures stabilized near $92 a barrel yesterday but were still on track to fall for the third month in a row on a weakened demand outlook and aggressive rate hikes by major central banks. threatened global growth, while top importer China adheres to a strict zero-Covid strategy that is derailing the recovery.

　　WTI is down more than 6% so far in August, and the Federal Reserve remains committed to a tighter policy to stifle inflation. The European Central Bank is also reportedly discussing a more aggressive policy move, even as an energy crisis intensified recession risks in the region. On the supply side,

　　The price of the Gold draws near one-month lows around $1,720 an ounce on Wednesday and headed for a fifth straight monthly decline. The metal is down more than 2% so far in August, reversing all gains made earlier in the month. Copper futures held below $3.60 a pound on Wednesday after retreating from a two-month high of around $3.78 reached last week, amid a weakened demand outlook driven largely by by the tightening of central bank policy and persistent economic concerns about the main consumer: China.

　　FOREIGN EXCHANGE

　　The dollar index stabilized around 108.5 on Wednesday and was on track for a third consecutive monthly gain, supported by firm expectations that the Federal Reserve will keep interest rates elevated until inflation falls back within target. Sterling weakened past $1.18, hitting its lowest level since March 2020, as the prospect of runaway inflation threatened to hurt the pound's purchasing power and further damage the British economy. Citi economists forecast inflation to rise to 18.6% in early 2023 due to rising wholesale gas prices.

　　Chilean Peso: The Chilean peso dollar continues its decline and yesterday fell below the important support resistance zone of $878, touching $875 and bouncing strongly to go for $889 at the close, without a doubt that the dollar rebounded yesterday due to the rise that the dollar index has been having as well as the fall in copper due to low demand from China. But the situation could be that the dollar peso continues to decline and seeks to break $878 again to go look for new lows. The votes on September 4 will determine everything in the national currency.