U.S. stocks closed higher as investors shrugged off the fears of a full-blown trade war. The Dow Jones Industrial Average gained 1% to settle at 26656, logging its first record close since January. Also, the SPX500 rose 0.8% to close at a record of 2930, and the tech-heavy Nasdaq Composite advanced 1% to 8028. The strong economic data and corporate earnings boosted the U.S. stock market lately. However, trade tariffs remain a threat to the performance of firms in the future and could affect the overall performance of the economy.
The dollar index which measures the greenback against a basket of major currencies tumbled to a ten-week low of 93.90 as investors rushed for riskier currencies. The Initial Jobless Claims fell to 201 thousand, the lowest level since 1969. The Philadelphia Fed Manufacturing Index rose to 22.9 from 11.9 prior. Despite the strong economic data, the dollar weakened against major rivals but was firmer against the Japanese yen. The EURUSD touched the $1.18 level for the first time since June, the GBPUSD traded at a ten-week high of $1.3299, and the USDJPY reached a two-month high of 112.87.
Metals prices surged as the dollar weakened across the board. The gold ounce trade at a one-week high of $1211 and the silver ounce rose to $14.43, the highest level in two weeks.
Oil prices finished lower as President Donald Trump called the Organization of the Petroleum Exporting Countries to lower prices. The West Texas Intermediate crude futures settled at $70.16 per barrel, and the Brent futures closed at $78.58 per barrel. However, oil prices remain backed by the U.S. sanctions on Iran and their effect on the market supply. The energy services firm Baker Hughes will report the U.S. oil rig count later today. The firm announced last week that the rig count rose to 867 from 862 showing a rise in the U.S. drilling activity.
Major Economic Events
|12:30||CA||Core CPI (MoM) (Aug)||0.1%||0.2%|
|12:30||CA||CPI (MoM) (Aug)||-0.1%||0.5%|
|12:30||CA||Core Retail Sales (MoM) (Jul)||0.6%||-0.1%|
|17:00||US||U.S. Baker Hughes Oil Rig Count||867|
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