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Oil at Record Highs; Australia Hawkish: 5 Keys to Tuesday's Stock Market Action

Published 07/06/2022, 07:48
Updated 07/06/2022, 07:54
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By Laura Sanchez

Investing.com - A busy week for the markets, with the focus on central banks and the US CPI next Friday.

Australia raises interest rates more than the market expected.

Oil prices remain at record highs, despite OPEC.

Cryptocurrencies are trading lower this morning.

These are the five factors that investors should take into account when making their decisions today:

1. Australia raises rates more than expected

Early this morning, the Reserve Bank of Australia announced that it is raising interest rates to 0.85% from 0.35%. This is 25 points more than the consensus expected (0.60%).

The agency raised rates by 0.50% and follows the general trend of the major central banks to tighten monetary policy.

2. Oil prices soar despite OPEC's agreement

The agreement reached last week by the Organisation of Petroleum Exporting Countries (OPEC) to increase production by 50% has not helped to calm oil prices.

This morning, WTI crude is trading at $119 and Brent at $120.

3. Crypto, down

The cryptocurrency sector is down this morning, losing yesterday's gains. Bitcoin is trading around $29,500 and Ethereum at $1,750.

4. Asia and the American stock market

The main Asian indices are mixed today. Nikkei is up 0.1%. Hong Kong's Hang Seng lost 0.4% and the Shanghai Composite gained 0.2%.

On Wall Street, the market ended yesterday in the green. The S&P 500 (0.3%), Nasdaq (0.4%) and Dow Jones (0.05%) closed higher.

5. Macroeconomic data

The main macroeconomic releases in Europe include German factory orders, Spanish industrial production, UK services PMI, as well as Euro zone investor confidence.

In the US we will see exports, imports and trade balance, and weekly API crude oil stocks.

Follow the day's events on our economic calendar: https://uk.investing.com/economic-calendar/

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