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FTSE 100 Falls Back into Negative Territory, Oil Rises for 2nd Day, Gold Little-Changed on Tuesday

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FTSE 100 Falls Back into Negative Territory
The FTSE 100 erased early gains to trade 0.8% lower at 6,560 on Tuesday, amid ongoing worries about rising inflation and as investor focus shifts to US Federal Reserve chair Powell’s testimony to Congress later in the day. On a more positive note, travel and hospitality stocks gained, amid hopes of an economic recovery supported by the UK’s fast deployment of Covid-19 vaccines and the prospect of easing coronavirus restrictions. Prime Minister Boris Johnson has announced on Monday more details of the plans to ease restrictions on the UK economy, saying his roadmap will guide the government “cautiously but irreversibly” to ending the lockdown and that all restrictions should be lifted by June 21st.

Oil Rises for 2nd Day
Oil prices rose for the second session on Tuesday, with WTI trading around $62.1 a barrel and Brent about $62.7 a barrel, supported by the expected slow return of US crude output after last week’s deep freeze weather in Texas. A bullish view dominates sentiment after oil prices recovered to pre-pandemic levels earlier this month as investors expect further market tightening and a global economic recovery supported by a COVID-19 vaccination campaign globally.

Gold Little-Changed on Tuesday
Gold futures traded around $1,800 per ounce on Tuesday, down 0.3% from the previous session, as investor focus shifted to Federal Reserve Chairman Jerome Powell’s testimony on the Semiannual Monetary Report to Congress starting later today. Gold, which is often viewed as an inflationary hedge, gained more than 1% in the previous session, amid concerns over rising inflation. Meanwhile, President Joe Biden’s $1.9 trillion US COVID-19 package is expected to be approved in the coming days.

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