1. U.S. markets start the day higher as traders analyse Fed minutes.
Following the publication of the Federal Reserve's meeting minutes from May, which revealed that policymakers are committed to rising interest rates in an effort to battle inflation, U.S. equities began higher on Wednesday. The S&P 500 increased by 0.7%, the Nasdaq Composite by 1.1%, and the Dow Jones Industrial Average increased by 150 points, or 0.5%.
Investors were relieved to learn that the Fed takes inflation seriously and is prepared to move forcefully to stop it. They are worried that a recession could result from the Fed's activities, though.
2. Oil prices increase as supply issues outweigh concerns about a recession.
Oil prices increased on Wednesday as worries about limited supplies globally trumped worries about a recession that may reduce demand. To $110.20 per barrel, West Texas Intermediate crude oil increased $1.20, or 1.1%. At $114.57 a barrel, Brent crude oil was up $1.19, or 1.1%.
The Organisation of the Petroleum Exporting Countries (OPEC) and its partners, referred to as OPEC+, opted to remain with their plan to boost output by 432,000 barrels per day in July and August, which led to an increase in oil prices. Despite requests from several nations, particularly the United States, for OPEC+ to raise output more swiftly in order to help lower oil prices, this decision was made.
Despite worries about a recession, the increase in oil prices is evidence that the world economy is still expanding. The fact that increasing oil prices will result in higher prices for petrol, heating oil and other goods and services is a reminder that inflation is still a serious issue.
3. Gold prices rise as investors seek safety.
On Wednesday, gold prices increased as investors sought protection amid worries about the world economy. To reach $1,841.50 per ounce, gold for August delivery increased by $12.50, or 0.8%.
The U.S. dollar's depreciation and the decline of global stock markets coincided with the increase in gold prices. Investors are searching for assets that would safeguard their wealth in a downturn as they grow more concerned about the potential of a recession. When investors are concerned about the economy, they frequently purchase gold since it is regarded as a safe haven asset.
A indicator that investors are becoming more risk-averse is the increase in gold prices. Further falls in stock markets and other hazardous assets may result from this.
