“Oil reaches 2008 highs as the US and Europe consider a ban on Russian oil imports…”

Brent crude rose to near $130 a barrel on Monday, the highest level since 2008, as the US and its European allies consider a Russian oil import embargo, while delays in the probable return of Iranian crude to global markets fuelled supply concerns. Global oil prices have spiked more than 60% since the start of 2022, along with other commodities. This is raising concerns about world economic growth. China, world’s No. 2 economy, is already targeting a slower growth of 5.5% this year. Fuel prices have surpassed 2008 records with U.S. gasoline at a high of $3.890 per gallon and heating oil futures at $4.237 per gallon. Russia is the world’s top exporter of crude and oil products combined, with exports at around 7 million bpd, or 7% of global supply. Some volumes of Kazakhstan’s oil exports from Russian ports have also faced complications. Iran will take several months to restore oil flows even if it reaches a nuclear deal, analysts said.

Gold dragged to 4-week low by hawkish Fed bets, firmer dollar

Gold prices plummeted to their lowest level in four weeks on Monday, as bets for an increasingly aggressive and hawkish U.S. Federal Reserve approach to tightening monetary policy boosted the dollar. This pressured demand for bullion. Spot gold XAU= was down 0.7% at $1,916.41 per ounce, as of 0545 GMT, earlier hitting its lowest since March 29 at $1,914.58. U.S. gold futures GCv1 were down 0.9% at $1,917.40. Gold is highly sensitive to rising U.S. short-term interest rates and a greater return, which increase the opportunity cost of holding non-yielding bullion. During economic and political crises, however, it is regarded as a secure store of wealth.

Stocks, euro, oil tumble as French election relief short-lived

On Monday, traders sold riskier assets as relief over Emmanuel Macron’s victory in the French presidential election gave way to increased fears about the global economy and the impact of rising interest rates. Overnight, Asian markets had their worst session in over a month, as fears of a return to lockdown in Beijing pushed Chinese shares back to 2020 lows, while the impact of Wall Street’s 2.5 percent drop on Friday lingered.

Euro slips below $1.06 for first time since 2017

The euro fell below $1.06 for the first time in five years against a broadly strong U.S. dollar on Wednesday amid rising concerns around energy safety and growth slowdown in China and Europe. The single currency has fallen more than 4% so far in April and is heading for its worst monthly loss in more than seven years as uncertainty around the war in Ukraine and China’s COVID lockdown measures led traders to ditch the euro in favour of the safe-haven dollar.

The euro dropped to its weakest since 2017 on Wednesday after Russia halted gas supplies to Bulgaria and Poland amid rising investor concerns for the regional economy. The euro traded as low as $1.0586 before recovering to just above $1.06. The dollar index, which measures the U.S. currency against a basket of rivals, rose as much as 0.5% to 102.78 =USD, its strongest since March 2020 when a COVID 19-induced market slump sent investors scrambling for dollars.

Dollar hits five-year high, growth euro has taken a knock

The dollar hit a five-year high on Wednesday before the Federal Reserve next week is expected to hike rates, while the euro weakened on growth concerns after Russia cut off gas supplies to parts of the region. The more grounded dollar moreover blunted an endeavoured bounce for the yen , which had seen support from safety flows for the risk of a shift of policy. After touching a 20-year low of 129.4 last week, the yen recently traded at 128.09 per dollar.

Britain delays full post-Brexit import checks until late 2023

Britain has postponed putting full post-Brexit import limits on products from the European Union until the end of next year, citing a desire to avoid adding to rapidly increasing inflation. Britain departed the EU’s single market in January 2021 and has repeatedly postponed full implementation of border restrictions due to concerns about port delays and COVID-19, as well as the possibility of exacerbating a cost-of-living crisis. The government said on Thursday that Russia’s invasion of Ukraine and the leap in global energy costs were hitting supply chains still recovering from the coronavirus pandemic. The EU’s restrictions for importing British goods went into effect at the beginning of the year. British inflation hit a 30-year high of 7.0% in March and is set to climb higher in the coming months, leaving households facing the biggest loss of income since at least the 1950s, according to the government’s budget forecasters.

Global growth expected to slow as inflation bites

According to Reuters polls of over 500 economists, the global economy would grow more slowly than forecast three months ago, with rising commodity prices and an escalation in the Russia-Ukraine conflict potentially prompting another downgrade. World economic output was already under strain due to monetary tightening as central banks struggle to contain growing inflation, but it took a hit when Russia invaded Ukraine on Feb. 24, sending commodity prices skyrocketing and sparking waves of economic sanctions.

The top two downside risks to the global economy this year, according to nearly 200 respondents, are consistently higher commodity prices and a further escalation in the Russia-Ukraine conflict.

Quarterly Accounts for General Government: Q4/2021

In a press release dated 22 April it was reported that during the period October to December 2021, total revenue stood at €1,574.5 million, an increase of €154.9 million when compared to the corresponding quarter in 2020. Total expenditure in the fourth quarter of 2021 amounted to €1,849.4 million, an increase of €175.3 million over the corresponding quarter in 2020. The largest increase was recorded in Compensation of employees (€52.9 million). General Government guaranteed debt amounted to €1,197.9 million at the end of December 2021, equivalent to 8.2 per cent of GDP. There was an increase of €30.3 million when compared to the fourth quarter of 2020.

Retail Price Index (RPI): March 2022

In a press release dated 25 April the retail price index was summarized.  In March, the annual rate of inflation as measured by the RPI was 4.43 per cent, up from the 4.22 per cent in February 2022. The 12-month moving average rate for March stood at 2.46 per cent. The largest upward impact on annual inflation was measured in the Food Index (+1.74 percentage points). In March, the Housing Index registered the highest annual inflation rate of 9.75 per cent of which Rent registered an annual rate of 3.45 per cent, Materials for house maintenance registered an annual rate of 10.74 per cent and Services for house maintenance registered an annual rate of 10.83 per cent. The water, electricity, gas and fuels Index registered the lowest annual inflation rate of 0.00 per cent, since the prices of all subcomponents remained unchanged.

Unemployment Rate: March 2022

In a press release dated 28 April, it was reported that the seasonally adjusted monthly unemployment rate for March 2022 stood at 3.0 per cent, dropping by 0.1 percentage points when compared with the previous month. In March 2022, the monthly unemployment rate was 3.0 per cent.  For the month under review, the unemployment rate for males was 3.2 per cent while the rate for females stood at 2.8 per cent. The unemployment rate during March 2022 for persons aged 15 to 24 years (youth unemployment rate) was 10.0 per cent while the rate for those between 25 and 74 years remained stable at 2.3 per cent.

‘Disclaimer: The information provided on this website is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning investments or investment decisions, or tax or legal advice. Similarly, any views or options expressed on this website are not intended and should not be construed as being investment, tax or legal advice or recommendations. Investment advice should always be based on the circumstances of the person to whom it is directed, which circumstances have not been taken into consideration by the persons expressing the views or opinions appearing on this website. Timberland Finance has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website. You should always take professional investment advice in connection with, or independently research and verify, any information that you find or views or opinions which you read on our website and wish to rely upon, whether for the purpose of making an investment decision or otherwise. Timberland Finance does not accept liability for losses suffered by persons as a result of information, views of opinions appearing on this website. This website is owned and operated by Timberland Invest Ltd.’