Palladium rallies 3.5% on global demand prospects
Palladium prices rose on Tuesday on prospects of increasing global demand, especially in China, the world's largest metals consumer.
The Federal Reserve, the European Central Bank, and Bank of England all voted to increase interest rates to control runaway inflation.
Monitors believe the Fed and other central banks will take a path of slowing down the policy tightening gradually to avoid recession.
It's clear now that global central banks have managed to keep a lid on runaway inflation, especially in the US and euro zone.
Otherwise, the dollar index rose 0.2% to 103.8 as of 15:33 GMT, with a session-high at 103.9, and a low at 103.2.
Palladium futures due in March rose 3.7% to $1,638 an ounce as of 15:35 GMT.
What's expected to come?
Analysts believe China's recovery will lead to much stronger demand on industrial metals such as palladium.
Oil extends recovery on supply concerns after Turkey's earthquakes
Oil prices rose in European trade off recent lows with US crude climbing off two-month lows while Brent rebounded from four-week lows on concerns about supplies after closing a major export station following Turkey's earthquakes.
Prices were also boosted by prospected Chinese demand, and after Saudi Arabia raised crude prices for Asian buyers for the first time in six months.
Global Prices
US crude rose 1.9% to $75.94 a barrel, while Brent added 2% to $82.87 a barrel, with a session-low at $81.24.
US crude rose 1.7% yesterday, the first profit in four days, away from two-month lows at $72.30.
Brent added 1.9% after a three-day losing wave, away from January 10 lows at $79.15.
Supply Shortages
Operations at a major Turkish port that exports a million bpd of crude were halted after Turkey faced a series of strong earthquakes.
Analysts also expect strong Chinese demand to prop up prices in the weeks to come.
Chinese Demand
The International Energy Agency recently predicted increasing production from major crude producers as Chinese demand rebounds.
Despite concerns about a global recession, the IEA still expects Chinese recovery to be the major mover for oil prices.
The global agency expects half the growth in global crude demand this year to come from China, while pointing to the improvement in jet fuel as well.
Saudi Crude
Saudi Arabia raised crude prices for Asian buyers for the first time in six months on prospects of stronger Chinese demand.
Dollar hits four-week high ahead of Powell's speech
Dollar rose in European trade against a basket of major rivals for the fourth straight session, hitting four-week highs following strong US labor data.
Such data bolstered the case for further 0.25% rate hikes by the Federal Reserve throughout the year, with investors now awaiting Fed Chair Jerome Powell's speech in Washington today to gather more clues.
The Index
The dollar index rose 0.25% to 103.79, the highest since January 9, with a session-low at 103.39.
The dollar index rose 0.6% yesterday, the third profit in a row against a basket of major rivals following strong US data.
US Labor Sector
The US economy added a massive amount of jobs in January, while unemployment fell to 1969 lows, showing the strength of the US labor sector.
Such strength might push the Federal Reserve to extend its policy tightening for a longer period this year.
And indeed markets now mostly expected peak interest rates to reach 5.25% by June, up from 5% previously.
Powell
Federal Reserve Chair Jerome Powell is due to participate in a moderated discussion at the Economic Club of Washington DC, with investors awaiting for more clues on the future path of monetary policies.
