On Monday, Asian stock markets were closed as investors prepared for a week filled with 13 central bank meetings, all of which are expected to raise borrowing prices throughout the world, with the possibility of a large hike in the United States. Markets have already completely priced in a Federal Reserve rate hike of 75 basis points.
Rates might rise as high as 5.0-5.25% if the Fed is compelled to plunge the economy into recession to combat inflation. Because of this danger, two-year Treasury rates rose 30 basis points last week alone, reaching their highest level since 2007. The majority of the banks gathering this week, from Switzerland to South Africa, is anticipated to raise interest rates. The Bank of Japan is an exception since it has shown no signs of quitting its ultra-low yield curve.
The rise of the currency and rates has weighed on gold, which was trading at $1,672 per ounce. Oil prices were attempting to recover on Monday after losing roughly 20% so far this quarter due to concerns about demand as the global economy slows. Brent gained 92 cents to $92.27 per barrel, while US crude gained 76 cents to $85.87 per barrel.