OPEC+ is meeting today - 3.8.2022

Yesterday the dollar index rose after 4-session losses in a row. The level 105 became the psychological level of support. No important economic data were released in US on Tuesday. Market participants reaction to Fed statements on further monetary policy tightening was positive. Federal Reserve’s next meeting is on September 21 - not really soon. The Japanese yen weakened against the background of regional risks as U.S. House of Representatives Speaker Nancy Pelosi visited Taiwan. Weak unemployment data(3.3%) were released in New Zealand today in the morning. Together with the decline in GDT New Zealand Price Index this may result in the New Zealand dollar decline. Positive inflation data (3.4%) were published today in Switzerland. Nevertheless they didn’t support the Swiss franc. The euro is strengthening currently on surprisingly strong Germany Trade Balance for June (+6,4 billion euro).

Bitcoin is trading above the psychological level of $20.000. China accounts for over 20% of global crypto mining, according to Cambridge Centre for Alternative Finance. Possible deterioration of US-Sino relations may negatively affect the crypto market. It likely worries big investors. The number of wallets with over 1 Bitcoins in them and the number of wallets with over 10 Bitcoins in them rose in the last two months. At the same the number of much larger wallets with over 100 Bitcoins in them and with over 1000 Bitcoins in them declined.

US stock indexes declined the second straight session on Tuesday. Investors reacted to declining activity in manufacturing sector. The Monday report showed ISM United States Manufacturing Purchasing Managers Index for July declined to two-year low at 52.8. Anyway, US stock indexes futures are advancing today in the morning. The defense industry stocks of Raytheon Technologies, Lockheed Martin and Northrop Grumman are in demand against the backdrop of rising risk of worsening of US-Sino relations. Uber Technologies reported higher revenues and its stock rallied 19%. At the same time the company sold Zomato Ltd stocks worth $392 million, according to Reuters. Citigroup upgraded Tesla that resulted in 1.5% gain in Tesla shares. Tomorrow Tesla will hold an earnings call with investors. Booking, Moderna, Regeneron Pharma and other will publish results today. Also the ISM Non-Manufacturing PMI report, US Factory Orders report and other will be released today.

Crude oil prices are declining for third straight session today. The independent American Petroleum Institute reported US domestic crude oil stocks rose by 2.2 million barrels last week. This is bearish for oil prices. Besides, investors hope crude oil output will be raised after OPEC+ meeting today. In July it was 3 million barrels per day lower than the agreed output quotas because of sanctions against Russia and Iran. It provided support for prices (above $100 per barrel). Earlier OPEC lowered its estimate for global oil  consumption growth for 2022 to 200 thousand bpd from 800 thousand bpd, which can be viewed as an argument for slow output growth.