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People are going back to work as jobless claims drop

U.S Job Openings Hit a New High, Markets React to FOMC Meeting & EU Set to Propose Russian Oil Ban

S&P 500 climbs, as U.S. job openings hit new high

The benchmark S&P 500 was higher during Tuesday’s session, as markets reacted to the news that job openings in the U.S. had hit a record high.

Figures released by the Labor Department via its JOLTS report showed that job openings had risen by 205,000 to 11.5 million during March.

This is the second monthly increase in the JOLTS report, with the latest rise taking openings to their highest on record.


source: tradingeconomics.com

In addition to record job openings, it was also reported that over 4.5 million workers voluntarily quit their jobs.

This data comes a few days ahead of the scheduled monthly non-farm payrolls report.

Gold volatile, ahead of FOMC meeting

 Gold prices were trading with increased volatility on Tuesday, ahead of tomorrow’s FOMC meeting.

The Federal Reserve is set to give its policy update, with many forecasting the bank led by Jerome Powell to push through a rate hike.

Following some comments in April, Powell said that a 50-basis point increase was “not off the table”, and markets have now pencilled this in for tomorrow.

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If the FOMC meeting is more hawkish, gold could dip to levels indicated by real yields. However, a dovish meeting or escalation in geopolitical tensions or inflation fears could push gold back towards $1,900/oz, Standard Chartered analysts said in a note.

As inflation in the United States continues to hit record highs, many expect the Fed to continue to tighten policy in hopes of getting consumer prices down.

Gold rose to a peak of $1,977, climbing from a bottom of $1,950.

Oil slips 1.6%, as EU set to propose Russian oil ban

Oil prices were lower on Tuesday, despite reports that the EU were set to propose a Russian oil embargo.

The EU was said to be preparing a new round of sanctions against Russia, with Russian energy finally on the table.

There has been hesitancy from some members of the bloc to ban Russian oil and gas, however as tensions continue to rise, it seems inevitable that an embargo will be implemented.

A EU official stated that, “It would be good to have everyone on board, but if it means delaying [oil sanctions] for everyone then that would not be good”.

Although the ban would mean less global supply, prices dropped as demand is currently low due to new Chinese COVID-19 lockdowns.

 “Stocks are bought not in fear but in hope. They are typically sold out of fear.”

–Justin Mamis

Eliman Dambell

Senior Market Analyst