News

US Stocks Soar on U.S./Mexico Trade Deal

News Archive

2011 2012 2013 2014 2015 2016 2017 2018

Equities

Wall Street closed higher on Monday boosted by the trade agreement reached by the United States and Mexico which eased trade tensions. The Dow Jones Industrial Average gained one percent to 26049, its highest close since early February. The SPX500 traded at a record high of 2898 and settled at 2896, whereas the tech-heavy Nasdaq Composite traded above 8000 for the first time and logged a record close of 8017. Trump is happy with the current situation with Mexico and said that the deal would support manufacturers and farmers. Moreover, he is eager to reach a deal with Canada. Regarding China, Trump said that it is not the right time to talk, Chinese officials headed to the United States last week for trade talks, but the two-day meeting terminated with no progress.

USD

The dollar index which measures the greenback against a basket of major currencies fell to trade near a one-month low as the dollar selling round continues following Powell’s Jackson Hole speech. DXY traded at a low of 94.68 during the Asian session. The dollar index strengthened earlier this month while serving as a safe haven, but it lost most of its gains due to the enhanced investor's risk appetite. The EURUSD climbed to a four-week high of $1.1697, and the GBPUSD reached a high of $1.2901. The CB consumer confidence is due today where market participants will be able to grab a hint about consumer spending that plays a major role in the overall economic activity.

 Metals

Gold prices surged to their highest level in two weeks supported by the drop in the U.S. dollar. The gold ounce reached a high of $1212 during the Asian session. On the other hand, the silver ounce also traded at a two-week high of $14.92.

Oil

Oil prices ended higher for the second consecutive day supported by supply disruption and lower OPEC production. The International Energy Agency warned from the lower supply from Venezuela, Libya, and Nigeria. On the other hand, the monitoring committee of OPEC reported that oil producers reduced their production by nine percent more than required. The West Texas Intermediate crude futures settled at $68.87 per barrel, and the Brent futures ended at $76.29 per barrel. The American Petroleum Institute will report the weekly US crude oil stock later today.

Major Economic Events

GMT Country Event Expectation Previous
14:00 US CB Consumer Confidence (Aug) 126.8 127.4
20:30 US API Weekly Crude Oil Stock   -5.170

 
Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM.COM. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.

CFD’s and Spot FX are complex instruments and come with a high risk of losing money rapidly due to leverage. 79.45% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs and Spot FX work, and whether you can afford to take the high risk of losing your money. Read More
Read More
Mail Call Chat