The international oil price plummeted, and the oil plugs fell more than 9%!The euro also collapsed!The reason is......

Zhongxin Jingwei, July 6th. On Tuesday, the international oil price plummeted, and the exchange rate of the euro against the US dollar fell to nearly 20 years.

Oil price plumme

On Tuesday, local time, international oil prices plummeted due to the market increasingly worried about the global economic recession and other reasons.

Global Standards Brent crude oil closed at $ 102.77 per barrel, down 10.73 US dollars, down 9.5%. Western Cases in the United States closed at $ 99.50 per barrel, a decrease of 8.2%, down 8.93 US dollars.

Reuters reported that these two benchmarks set the largest single -day percentage decline since March 9 and crack down on the stock price of major oil and natural gas companies.

The report quoted Robert Yawger, the director of Ruisui Energy Futures, saying: "We are being hit hard. The only way you can explain this is to worry about recession."

The report pointed out that oil futures and natural gas, gasoline, and stocks fall together, which are usually indicators for crude oil demand.

Andy Lipo, president of the consulting company Lipow Oil Associations, said that if the economic recession really strikes and the demand for energy is greatly reduced, greater downward fluctuations may occur. "When you fall into a recession and the supply exceeds demand, the commodity market may be quite ruthless," Lipow said.

The report shows that at the same time, the demand for US Treasury bonds has promoted the US dollar up by about 1.3%, which in turn suppresss oil pricing at the US dollar, because for buyers holding other currencies, oil becomes more expensive Essence

The exchange rate of the euro against the US dollar has fallen to nearly 20 years

The euro against the US dollar fell at a new low of 1: 1.025 since December 2002, and the cumulative depreciation of more than 9%since the beginning of the year.

On the news, the final value of the euro area in June fell from 54.8 in May to 52, a 16 -month low, slightly higher than the expected 51.9. The final value of the service industry in the euro zone decreased from 56.1 in May to 53.0.

Reuters said that the data showed that the euro area's business growth last month has slowed down, and forward -looking indicators show that consumers are vigilant due to the cost of living costs, the region may fall into recession this quarter.

The report quoted Chris Williamson, chief commercial economist of S & P Global Market Intelligence, said: "The growth rate of business activities in the euro zone has deteriorated sharply, which has increased the risk of economic recession in the third quarter." He also said: "June June PMI data shows that risks are becoming increasingly inclined to slide in the downturn, while inflation pressure is eased but still at a high level. "

Reuters reported that official data showed that the inflation rate in the euro area last month was 8.6%, which was more than four times that of the European Central Bank's 2%target. The European Central Bank lags behind many central banks in lift the super loose monetary policy, but has stated that it will start raising interest rates this month. A recent polls of Reuters predict that 25 basis points will be raised in July, and 50 basis points will be raised in September.

U.S. stocks are rising and falling

The Dow Jones Industrial Average closed down at 129.44 points, a decrease of 0.42%to 30967.82 points; the Standard Pur 500 Index closed up 6.06 points, an increase of 0.16%to 3831.39 points; 11322.24 points.

Reuters reported that with the Federal Reserve, the S & P 500 Index (SPX) has reached the largest decline in 1970 in the first half of the year, and the US stock market has been affected by ruthless selling pressure since this year.

Investors are waiting for the minutes of the Federal Reserve's June meeting to prepare for 75 basis points to raise interest rates at the end of this month.

Dealers are also paying close attention to economic data, including the June non -agricultural employment reports that are expected to be released on Friday, and the company's comments on signs of inflation to peak and economic growth.

Data show that the growth of new orders in the United States in May exceeded expectations, reflecting that even if the Fed tried to cool down, the demand for products was still strong.

In addition, the business growth of the entire euro zone in June has slowed down, and the price of natural gas in Europe has soared again, which has once again triggered concerns about the decline in the euro zone.

Reuters quoted Bill Nosxi, a senior investment director of Bank of the United States Bank of Wealth Management, said: "The risk of a complete decline is non -zero. The current decline may appear later this year, and the possibility that may even appear in early 2023 is increasing . ".

The benchmark U.S. Treasury yield fell on Tuesday. The key part of the yield curve reversed for the first time in the past three weeks. Due to the concerns of economic growth, it weakened risk preferences and increased the demand for safe -haven US bonds.

Eight of the 11 main sectors of S & P, the communication service (SPLRL) led, the energy (SPNY) has the largest decline, setting a five -month low, because of concerns about the recession, the outlook for oil demand is dim. (Zhongxin Jingwei APP)

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