Oil rises sharply after OPEC+ meeting

After the completion of the OPEC+ ministerial meeting, Brent quotes rose to $71.30 per barrel. The last time such price values ​​were recorded in May 2019.

The OPEC+ ministers held the shortest meeting in history and within 15-20 minutes adopted the recommendations of the OPEC+ ministerial monitoring committee to maintain the planned plans to increase oil production in July. Production levels after July were not discussed. According to the deal signed a year ago, after July, the alliance plans to keep the production level unchanged until April 2022.

The OPEC+ Technical Committee, whose meeting took place the day before, came to the conclusion that a surplus in the oil market should not be expected even if the forecast for demand for the current year is reduced.

Thus, the decision was again made to gradually restore oil production: in May, the countries participating in the agreement can increase production by 350 thousand barrels per day, in June – by the same amount, in July – by 441 thousand barrels per day. In addition, Saudi Arabia lifted its voluntary restrictions: 250 thousand b/d in May, 350 thousand b/d in June and 400 thousand b/d in July.

In addition, market participants continue to monitor the progress of negotiations on the Iranian nuclear deal. Tehran said it hopes for a full restoration of the agreements before the expiration of the current government's term in August.

June 03. Beige Book: US economic growth accelerates

The US Federal Reserve Beige Book was published last night – a document containing summaries and comments from the Fed on the economic situation in the country.

According to the report, the US economic recovery accelerated between April and May, despite supply bottlenecks, hiring new hires, and rising prices in many parts of the country.

In addition, the widespread use of Covid vaccinations and the weakening of quarantine measures had a strong impact on consumer spending: their growth is primarily associated with an increase in public spending on travel and restaurants. At the same time, the level of sales of passenger cars remained stable, and this is due to a slowdown in production due to a shortage of semiconductors.

In general, production in the country continues to grow, but many manufacturers report widespread material and labor shortages. The number of employees in the United States is growing relatively steadily, with the largest gains in employment shown in the catering and retail sectors. The growth in wages was also moderate, but it is noted that more and more employers have raised wages and offered bonuses.

The Beige Book is usually published about two weeks before the next Fed meeting. The next meeting of the FRS leadership will take place on June 15-16.

June 04. The oil market is in the final phase of the growth cycle

Analysts believe that the oil market is currently in the final phase of its growth cycle, and prices may soon peak.

Norbert Rücker, head of the Next Generation forward-looking research department of the Swiss bank Julius Baer, ​​believes that by mid-year oil prices will move significantly above the $70 per barrel mark. And this will be the maximum level from which a long-term correction is likely.

At the moment, Brent oil quotes are trading slightly above the $70 level. On Tuesday, the price even reached $71.94 a barrel for the first time since March 8.

Experts believe that the rise in prices was promoted by positive dynamics in demand and likely delays in nuclear negotiations with Iran. Additional support to the market was provided by the results of the OPEC+ meeting, according to which it was decided to continue easing restrictions on oil production in July.

June 07. The European Parliament named the countries to be admitted to the European Union

The head of the European Parliament David Sassoli in his interview called for the admission of the Western Balkan countries to the European Union. At the same time, the politician noted that such an enlargement of the EU would become «a positive project for peace and prosperity.»

These are countries such as Albania, North Macedonia and Serbia. The expansion of the EU's territory can have enormous benefits both for the Western Balkan region itself and for Europe as a whole, as it will help «ensure a stable, prosperous and peaceful continent.»

According to Sassoli, the countries of the Balkan Peninsula will be able to join the European Union as soon as they meet all the necessary criteria. And at the moment, all countries have yet to complete some reforms.

June 08. Europe faces an unplanned gas shortage

Gas prices in Europe remain at an all-time high, although gas prices generally fall in summer. The reason for this was the lack of fuel and the impossibility of competition from coal.

In particular, spot prices at the largest hub, TTF, consistently exceeded $300 per thousand cubic meters throughout May and did not retreat from the highs in the summer. Yesterday's gas price was marked at $349 per thousand cubic meters. A similar situation on the European gas market was observed only in 2011-2014. Then this was due to high oil prices (consistently above $100 per barrel).

The current deficit was caused by supply constraints from Norway and Russia, the main gas suppliers. In Norway, preventive work has begun on the production infrastructure, and the Russian Gazprom refuses in principle to increase the volume of supplies. 

At the same time, the supply of coal, which usually replaces gas in the energy sector, does not increase. Firstly, the price of coal has risen (more than 160% per year), and secondly, the fees for its use have sharply increased in Europe. Considering all of the above, analysts do not expect the picture of gas shortages in Europe to change before the end of this year.

June 09. IRS wants to receive data on transactions in cryptocurrencies

US Internal Revenue Service (IRS) Commissioner Charles Rettig said Congress needs to give the tax authorities legislative authority to collect information on cryptocurrency transfers in excess of $10,000.

Currently, more than 8600 crypto-exchanges have been created in the world, and the capitalization of the cryptocurrency market exceeds $ 2 trillion. At the same time, most virtual cryptocurrencies are created in such a way as to remain out of sight of the authorities. Moreover, there are more and more cases of illegal use of digital currencies by cybercriminals and hackers.

In addition, the huge revenues generated by the growth of crypto assets are eluding the IRS, creating a tax hole of about $1 trillion a year (the difference between legally owed and collected taxes).

Rettig suggests informing the IRS about cryptocurrency transfers in the same way banks do about money transfers, and brokers who report to the IRS about securities transactions. However, this initiative can be implemented no earlier than 2023.

June 10. World oil prices accelerated growth

On Thursday evening, world oil prices accelerated their growth, approaching $73 per barrel. The market was supported by demand signals from the monthly OPEC report.

In particular, the price of August futures for North Sea Brent crude oil mixture rose $72.90 per barrel, July futures for WTI rose to $70.64 per barrel.

Oil quotes support optimism for a recovery in demand, with traders assessing the June OPEC report. The organization noted that accelerating vaccination programs in many countries and increasing population mobility will positively affect demand in the second half of this year.

In addition, OPEC retained its forecast for the growth of oil demand in the world in 2021: the alliance still expects an increase in demand by 6 million barrels per day – to the level of 96.58 million barrels per day.

Additional support to the oil market was provided by yesterday's data from the US Department of Energy on oil reserves in the country. Inventories fell by 5.24 million barrels, which was better than the forecast for a reduction of 2 million.

11.06. ECB raised its forecast for GDP growth in the euro area

According to the latest forecast of the ECB, the growth of GDP in the eurozone this year will amount to 4.6%, which is significantly higher than the March forecasts. This became known during the speech of the head of the regulator Christine Lagarde at a press conference following yesterday's meeting of the Board of Governors.

Lagarde also noted that this assessment of the economy is presented in the baseline scenario of macroeconomic forecasts by the Central Bank for June 2021. According to these forecasts, GDP growth in 2022 will grow by 4.7%, and in 2023 by 2.1%.

Compared to previous ECB estimates, which were made in March, GDP growth forecasts for 2021 and 2022 have been revised upward (4% and 4.1%, respectively). The forecast for 2023 remains unchanged.

According to inflation forecasts, consumer prices are expected to rise 1.9% in 2021, 1.5% in 2022, and 1.4% in 2023. According to the March forecast, inflation was expected to be 1.5% this year, 1.2% next year and 1.4% in 2023. The correction of estimates is associated with the dynamics of energy prices.

EUR/USD: Euro is trying to resist, while the US dollar is not showing vulnerability

Contrary to the US currency, the Euro has maintained relative stability for a long time, without making sharp up or down movements. However, experts believe that a lot can now change, and the downward trend can push the euro to the bottom.

The ECB's actions at the end of last week contributed to a moderate decline in the European currency. It can be recalled that the representatives of the regulator came to the conclusion about the exaggerated impact of inflation on the economy. According to Robert Holzmann, ECB Board Member, excessive concerns about inflation are groundless, and it is now under control. The current situation contributed to the fall in the yield of European bonds, pulling the euro.

The single currency noticeably fell for the first time in a long time, although it managed to recover. Last Friday, the EUR/USD pair lost 0.2%, declining to the level of 1.2135. The Euro also showed a significant and sharp drop. On Monday morning, the main currency pair was trading near the level of 1.2102, trying to catch up.

Analysts believe that the current situation indicates an imbalance in sales, as the current decline in the EUR almost completely offsets the recent rise. According to experts, the EUR/USD pair was dominated by a "bearish" mood at the end of the previous week. Such a scenario led to the fact that traders began to reduce their euro positions after two months of increasing them. Experts are sure that the strengthening of this trend will contribute to the collapse of the EUR/USD pair.

In this case, they consider the level of 1.2123 as a new resistance level for the Euro currency. The beginning of the new week was marked by a slight rise in this currency, which began at the level of 1.2092. Experts call it a weak support level. Taking into account the current factors, analysts recommend focusing on short positions in the European currency.

June 15. China again threatens all world trade

The partial closure of the Yantian terminal at the Chinese port of Shenzhen is putting the entire global container trade at risk. Experts note that the consequences of such a failure could be much more serious than the blocking of the Suez Canal by the ship Ever Given in March this year.

Recall that the blockage of the Suez Canal affected 55 thousand TEU (a unit of measurement for the capacity of freight vehicles) per day and lasted six days. Problems in Yantian can affect 25.5 thousand TEU per day, and they have been going on for more than two weeks.

The reason for the closure of the terminal was the outbreak of coronavirus in the Chinese province of Guangdong, where the port is located. In addition to Yantian, problems arose in the nearest terminals Shekou (Shenzhen city) and Nansha (Guangzhou). It is worth noting that these are the third and fifth largest ports in the world.

A large amount of cargo has already accumulated outside the port, some of which is being redirected to the ports of Nanshu, Shekou and Hong Kong, but their capacity is no longer enough. Complicating the situation is the fact that customs requirements differ in Chinese ports, which also limits the possibility of redirecting cargo flows.

June 16. The Netherlands intends to create a hydrogen exchange

The Netherlands, home to one of the world's premier natural gas trading hubs, TTF, is planning a hydrogen exchange. The project has already been named HyXchange.

The national gas company Gasunie conducted some studies, according to which it became clear that certification is required for the practical organization of a hydrogen exchange, as well as the creation of a spot market (at the very beginning of the simulation), a price index, mechanisms for balancing physical volumes and storing hydrogen. 

The hydrogen price index is supposed to take into account the method of its production and the degree of the achieved reduction of CO2 emissions.

The initiators of the initiative, represented by Gasunie, the country's port authorities and market participants, are confident that the H2 exchange can serve as a catalyst for the development of the climate-neutral hydrogen market. Experts see the transportation of hydrogen from different production methods (both «green» and other low-carbon H2) in the same network, as is the case with electricity or gas. At the same time, its added value for consumers will be preserved thanks to certification.

June 17. Investors prepare for volatility amid expectations of stimulus collapse

The Federal Reserve is starting to talk about curtailing super-soft monetary policy, which may cause high volatility in the near future.

The first increase in the Fed's interest rate is possible in 2023, and not in 2024, as previously predicted. Moreover, the regulator has begun debates about when and how it would be appropriate to start scrapping the massive $120 billion a month bond buying program.

Previously, it was planned that the program will continue until significant progress is made in the recovery of the labor market and in bringing inflation closer to the target level of 2%. And according to forecasts, inflation will well exceed the regulator's target, accelerating to 3.5% this year.

The question of when exactly the Fed will roll back stimulus has had a huge impact on financial markets: stocks have declined, the dollar has jumped to two-month highs, and the yield on 10-year Treasury bonds has surged.

Experts note that the current situation is reminiscent of 2013, when the Fed unexpectedly for everyone put forward the idea of ​​gradually winding up the quantitative easing program. Bond yields rose sharply then, and the underlying 10-year yield jumped from an approximate 2% in May to 3% in early September.

June 18. European stock exchanges decline on Friday

On Friday morning, the major stock indexes in Europe showed a decline after the comments of the US Federal system on monetary policy.

In particular, the British FTSE 100 index fell by 0.8%, to 7096.04 points, the French CAC 40 – by 0.04%, to 6662.86 points, and the German DAX fell by 0.43%, to 15659.65.

Investors continue to assess the situation in the markets and analyze the comments of the US Federal Reserve. According to the head of the Fed J. Powell, the key rate may be raised by 2023, which means a decrease in the flow of liquidity to the markets. Prior to that, the rate hike was not expected until 2024.

In addition, retail sales in the UK in May rose 24.6% on an annualized basis. At the same time, analysts predicted a growth rate of 29%. This can explain the strong decline in the FTSE 100 index.

June 21. Crypto traders lost $1 billion due to Chinese bans

The central bank of China has called on financial institutions to fight harder against cryptocurrency trading. The People's Bank of China urged banks to immediately close payment gateways for clients trading in cryptocurrencies. In addition to this, the country's third largest bank has also imposed restrictions on clients whose activity is related to cryptocurrencies.

The digital currency market immediately reacted to this news with a strong fall, by more than 6%, and the capitalization of the entire crypto market dropped to $1.46 trillion. The bitcoin rate fell to $31,828. In the daily interval, traders lost about $1 billion.

The largest liquidation was recorded in the bitcoin market, and traders spent ~$618 million.The Ether (ETH) market records liquidations for ~$267 million, and XRP – for $43 million.

Moreover, the hashrate of the Bitcoin network also showed a drop. For example, today the cryptocurrency hash rate has dropped to 91 Exaches/sec. The last time the network recorded such values ​​back in November 2020. However, experts note that the reduction in the hash rate may be due to the relocation of miners from China: in mid-May, China announced a fight against cryptocurrency miners under the pretext of protecting the financial system and reducing carbon emissions.

June 22. Oil prices rise above $ 75 for the first time since the beginning of 2019

World oil prices hit a new two-year high, rising to $75.28 for the first time since 2019. Since the beginning of the year, the price of Brent has risen by almost 40%.

The oil market was supported by expectations of a recovery in oil demand against the backdrop of a growing global economy, as well as a pause in negotiations on a nuclear deal between the United States and Iran.

The fact is that the presidential election in Iran was won by the supporter of the «hard» line Raisi. And given the fact that it has already been imposed by US sanctions, any deal with Washington now seems unlikely.

At the same time, the recovery of the economies of the USA, Europe and China is causing an increase in demand, despite the difficult epidemiological situation in a number of countries. At the same time, the beginning of the tourist season may lead to an increase in oil prices to new highs. Some analysts even predict the growth of Brent quotes to the $100 per barrel area.

June 23. Moody’s: the US expects the market to fall

The representative of the international agency Moody’s, which monitors the state of economies in different countries, said that investors should wait for the fall in the value of major market assets by 10-20%.

Last year, the US cut the rate to almost zero to revive the economy and consumer demand. However, demand and inflation in the US are now outstripping forecasts, which could force the Fed to raise loan rates and reduce bond redemptions in the market to contain the rise in prices. And after that the quotes will inevitably collapse by 10-20%.

The chief economist of Moody’s Analytics noted in his interview that the list of risky assets today includes both stocks and bonds, as well as commodities and cryptocurrencies. At the same time, experts do not expect a quick recovery of quotations on the stock market, because the value of shares is already at its maximums. It is estimated that it may take a year to cover losses after a market crash.

The Dow Jones posted its largest weekly drop since October 2020, shedding 3.5%. The S&P 500 experienced its worst week since the end of February, falling more than 2%. The Nasdaq hi-tech index also dipped, but it remains just 1.3% below its all-time high.

June 25. Elon Musk contributed to the creation of a new token

Tesla founder Elon Musk once again took advantage of his influence on the cryptocurrency market, leading to the creation of a new token.

In his Twitter account, Musk published a harmless post: «My Shiba Inu puppy will be called Floki.» After that, the value of the Shiba Inu token (SHIB) rose sharply – by 15%. Earlier, the cryptocurrency dropped significantly after China took a number of measures to restrict mining and trading in cryptocurrencies. Then the price of Shiba Inu fell by about 50% from a peak to a low from June 15 to 22.

Analysts believe that the coin may fully recover in the near future. The growth of Shiba Inu may even surpass the growth rate of Dogecoin.

Meanwhile, 9 minutes after Musk's publication, the Floki token was created on the Uniswap decentralized crypto exchange and its price increased by 795% per hour, to $0.000000001100.

In early May, Elon Musk wrote that he was looking for a Shiba Inu puppy. Then the cost of a token with the same name increased by 68% per hour. Later, Shiba Inu was listed by two crypto exchanges Coinbase Pro and Binance.

July 07. UAE will not support the extension of the OPEC + deal 

The UAE intends to abandon the plan to extend the oil production limitation agreement beyond April 2022, unless the country's reference base to reduce production is increased. The UAE is demanding an increase in the reference base for a reduction in production from 3.168 to 3.8 million b/d.

The Emirates agree to increase OPEC + oil production by 400 thousand barrels per day from August, but believe that the plan for extending the 2020 agreement should be discussed separately.

Earlier, the UAE Energy Minister Suheil al-Mazroui said that the country is ready to increase oil production when the market demands it. However, at the moment there is no need to make a decision to extend the term of the OPEC + agreement until the end of 2022. «The deal is valid for another nine months, and we have plenty of time to discuss it later,» the minister said.

In response, Saudi Arabia's Energy Minister Prince Abdulaziz bin Salman called on the UAE for compromise and rationality to reach an OPEC + agreement on Monday.

July 06. European stock exchanges decline on statistics for Germany

The main stock indexes in Europe on Tuesday decreased after the publication of statistics on Germany, which turned out to be worse than forecasted.

In particular, the British FTSE 100 index fell by 0.2% – to 7150.85 points, the French CAC 40 – by 0.46%, to 6537.05 points, the German DAX fell by 0.51%, to 15582.25 points. 

Market participants drew attention to German statistics, according to which the index of investor confidence in the country's economy in July fell to 63.3 points from 79.8 points in June. Analysts had expected the indicator to decline only to 75.2 points.

In addition, the volume of factory orders in Germany in May fell by 3.7% on a monthly basis against an increase of 1.2% a month earlier. Analysts predicted a 1% growth in the indicator.

At the same time, the statistics on retail sales in May turned out to be better than forecasted: the indicator in monthly terms increased by 4.6%, and in annual terms – by 9%.

July 7. The EC raised its forecast for growth and inflation in the eurozone

The European Commission has revised upward its estimates of economic growth in the eurozone in 2021 and 2022, while warning about the risks associated with new strains of coronavirus. The EC also expects higher than previously predicted inflation this year for all 19 EU countries, but assumes that consumer price growth will slow down in 2022.

This year, the European Commission expects the euro area to grow at 4.8% this year, much higher than the 4.3% forecast in May. Such a serious revision is mainly associated with the removal of lockdowns and the opening of the economies of the EU countries in the second quarter.

The European region is expected to grow 4.5% next year, higher than the 4.4% growth forecast published in May. 

Inflation, according to forecasts of the European Commission, this year will reach 1.9%, compared with 1.7% in the May forecast. In 2022, inflation is expected to slow down to 1.4%. Recall that the target inflation threshold of the European Central Bank is just below 2%. 

At the same time, representatives of the regulator note that inflation may turn out to be higher than predicted if problems with supply chains are more stable, and price pressure will have a stronger effect on consumer prices.

July 08. Russia tries to rescue stalled OPEC+ talks

Russia is trying to help resolve disputes between Saudi Arabia and the UAE in negotiations on a deal to increase production in the coming months. However, disagreements are still relevant, and the date of the next meeting of the OPEC+ pact partners has not yet been determined.

And these disagreements between the two countries of the Persian Gulf may exert strong pressure on the oil market, where Brent prices have recently reached highs of 2.5 years.

OPEC+ ministers canceled talks on Monday after the UAE did not support a proposed eight-month extension of production restrictions last week. As a result, the countries were unable to agree on a deal to increase production.

Russia is counting on further growth in oil production, actively working with Riyadh and Abu Dhabi to find a solution on the future of the deal. The Russian side hopes that the next meeting of the alliance members will take place next week.

July 09. Oil rises after data on US oil reserves

The oil market is showing an upturn at the end of the week after the release of data on US oil inventories. According to statistics from the US Department of Energy, US oil inventories fell by 6.9 million barrels in the week ended July 2. At the same time, gasoline stocks fell by 6.1 million barrels. Analysts predicted a decline in oil reserves by 4 million barrels, and gasoline – by 2.2 million barrels.

According to the trading data, the price of Brent rose to $74.95 per barrel, WTI added 0.88% to $73.93. Prior to that, both benchmarks fell by almost 3% over the week amid traders' fears that the failure of OPEC+ negotiations could lead to an increase in oil supplies to the market.

The current decline in US oil reserves has bolstered investor sentiment that fuel demand is increasing as the US travel season begins. However, despite this positive background, the risks of a decline in oil prices are still relevant. The fact is that disagreements still persist between Saudi Arabia and the UAE when concluding a deal to increase production in the coming months.

July 14. Bitcoin can grow to $37 thousand by August

On Tuesday, the main cryptocurrency disappointed investors again, dipping to the lowest value in 5 days. The asset price fell below $32 thousand and continued to move sluggishly down this morning.

Another drop in bitcoin occurred against the background of yesterday's publication of data on inflation in the United States. The price increase, which has reached a record level since 2018, may provoke a change in the current course of the US Federal Reserve in the direction of tightening monetary policy. And this is a negative agenda for risky assets, including digital currencies.

At the same time, analysts note that the cryptocurrency market is already very tired of bad news. This is evidenced by the amorphous reaction of the market to the latest unfavorable events for it. Investors, for example, almost ignored the next comments of the Chinese government about cryptocurrencies.

Traders also reacted coolly to the campaign launched by the United Kingdom, Japan, and other countries against the Binance cryptocurrency exchange. The "war" affected only the interests of residents of these states, throwing them problems with replenishing their accounts.

However, the mentioned battles did not affect the affairs of the exchange itself in any way. The dynamics of Binance Coin is proof of this: over the past week, the asset has demonstrated the best performance among the digital currencies in the top 10.

On this basis, some experts believe that the probability of the cancellation of the stimulating policy in the United States, as well as the work initiated by the Fed in the field of regulating the crypto industry, should not exert super-strong pressure on bitcoin and other coins.

This opinion is shared by the head of the Avanti cryptocurrency bank, Caitlin Long. Yesterday, she said that the US regulator is going to complicate access to payment systems and bank accounts for companies whose activities are related to digital assets.

On July 13, the stage of the public opinion poll on the document, the adoption of which was initiated by the Federal Reserve, was completed. This project will determine the principles on the basis of which requests for access to the services of the regulator will be evaluated.

According to the Wall Street veteran, the repression has already begun, but it will not directly affect bitcoin and other assets, but at the same time, of course, intermediaries will suffer.

The expert believes that if the document is adopted, the situation of 4 years ago may repeat, when many crypto companies lost their bank deposits.

The forecast of the head of the ICB Fund investment department, Aaron Chomsky, is also positive. He is confident that in the long term, the digital asset market is waiting for growth, despite the possible tightening of conditions for the crypto industry by the US Federal Reserve.

The expert is also optimistic about the medium-term dynamics of the main virtual coin. According to him, by August, the price of bitcoin can soar to $37 thousand.

The expert concluded that on-chain indicators indicate that the mood of many investors, including those who suffered from the relocation of miners from China, has changed. Traders have switched from selling to accumulating assets, which increases the probability of a bullish trend.

At the same time, Chomsky sees great growth potential in the main competitor of bitcoin. In his opinion, by the end of July, Ethereum is able to reach the $2,500 mark. The launch of the "London" update in the official altcoin network as part of its transition to the 2.0 protocol will serve as a springboard for the asset.

USD plunges after Powell's testimony

The US dollar plunged on Wednesday after Jerome Powell's testimony in Congress.

During his testimony before the House Financial Services Committee, the Fed's chair said that the US economy was still a way off from the central bank's goal. The Committee would discuss the possibility of changes to asset purchases when it sees enough progress toward its goal. In fact, the head of the Federal Reserve said nothing new. His stance on monetary policy has been the same since the beginning of the year at least. Therefore, investors did not expect his rhetoric to change in July. Besides, Powell acknowledged that inflation has increased notably and will likely remain elevated in coming months.

As a result, the US dollar index that measures the value of USD relative to the value of the basket of six major currencies went down from its extreme points. The index plunged by 0.36% to 92.42 points. The indicator has fallen to the level of 92.80 points for the second time this month. Thus, the downward momentum to the lower boundary of the trading range at 89.20-89.60 may well begin.

Ahead of the chair's testimony in Congress, inflation statistics came out in the United States. According to the latest data, the inflation rate in the US has hit a fresh high unseen for over 13 years. At the same time, a sharp increase in inflation came after several years of balancing near alarmingly low levels amid a rapid recovery of the US economy. This in turn triggered a spike in the US dollar to the 3-months high. Apart from that, the issue of tapering by the world's central banks has once again become relevant.

Another reason for considering this possibility came after the announcement of the Canadian regulator's decision. The Bank of Canada plans to reduce weekly bond purchases from CA$3 billion to CA$2 billion. At the same time, the Reserve Bank of New Zealand announced a halt to its pandemic-induced bond purchase program, which could lead to an increase in interest rates as early as next month.

American stock indices fell 0.8-0.9%

According to CNBC, while many of the country's largest companies reported high net income and revenue figures amid the economic recovery, the stock market response has generally been subdued.

Statistics released on Friday indicated unexpected growth in US retail sales last month.

US retail sales rose 0.6% in June from the previous month, the country's Commerce Department said. Experts predicted an average decline of 0.4%.

Meanwhile, the consumer confidence index in the US in July fell to 80.8 points from 85.5 points a month earlier, according to preliminary data from the University of Michigan, which calculates this indicator. This is the lowest figure since February this year. Meanwhile, analysts on average predicted an increase to 86.5 points. The Wall Street Journal respondents had expected growth to 86.3 points.

E-Trade Financial's managing director of investment strategy, Mike Levengart, noted that the sharp deterioration in consumer confidence appears to have overshadowed upbeat earnings reports and retail sales growth data.

The Dow Jones Industrial Average by the close of trading dropped by 299.17 points (0.86%) and amounted to 34687.85 points.

Standard & Poor's 500 lost 32.87 points (0.75%), down to 4327.16 points.

The Nasdaq Composite dropped 115.90 points (0.80%) to 14,427.24 points.

Over the week, the Dow fell 0.52%, the S&P 500 fell 0.97%, and the Nasdaq fell 1.87%.

Charles Schwab Corp. decreased by 2.4%, although the American banking and brokerage company almost doubled its net profit in the second quarter, while its revenue was better than expected.

Intel Corp. fell in price by 1.5%. One of the world's leading manufacturers of computer components is allegedly in talks to buy chip maker GlobalFoundries for $ 30 billion.

Moderna Inc. have risen in price by 10.3%. The shares of the American biotech company will be included in the Standard & Poor's 500 stock index, the index provider S&P Dow Jones Indices said. The changes will come into effect on July 21st. Moderna will replace Alexion Pharmaceuticals Inc. AstraZeneca Plc, a Swedish-British pharmaceutical company, is in the process of acquiring Alexion, with completion expected shortly. Alexion Pharmaceuticals was down 0.3%.