News

Dollar Remains Soft; S&P500 Hits Record, Fed Minutes in Focus

Dollar

The dollar index which measures the greenback against a basket of major currencies, extended losses, falling to 92.15. The escalating tensions between China and the United States are weighing on investors look towards the recovery, which could raise the chance of further stimulus. President Donald Trump declared last night that he had canceled impending trade talks with China. However, on the other hand, the better-than-expected housing data provided a bit of optimism. Market participants are currently looking forward to the Federal Reserve monetary policy meeting minutes.

Equities

Major US stock index futures raced higher supported by upbeat housing data. The US building permits and housing starts in July came well above expectations ensuring that the recovery is on its way, despite the downside risks. The S&P500 futures rose to a record high of 3397, the tech-heavy Nasdaq advanced to another all-time high of 11428, while the Dow Jones Industrial Average futures lagged other benchmarks and hovered near 27750.

Metals

Precious metals surrendered partial gains ahead of the minutes of the last Federal Open Market Committee meeting. The price of a gold ounce eased to $1980 after reaching a high of $2015, the price of a silver ounce declined to $27.18, and palladium futures dipped to $2185.

Oil

Oil prices drifted lower as fears of falling demand outweighed the drawback in US inventories. The stalled negotiations over the next relief bill in the United States and growing tensions between the world's largest economies raised investors' fears over a drop in demand. On the other hand, the American Petroleum Institute reported a decline of 4.264 million barrels in US crude oil stock, recording the fourth straight decline. Market participants are awaiting the official figures by the US Energy Information Administration. The West Texas Intermediate crude October delivery fell to $42.81, and Brent October delivery declined to $44.99.

Major Economic Events

GMT Country Event Expectation Previous

9:00

EZ

 CPI (MoM) (Jul)

-0.3%

0.3%

12:30

CA

 CPI (MoM) (Jul)

0.4%

0.8%

14:30

US

 Crude Oil Inventories

-2.670

-4.512

18:00

US

 FOMC Meeting Minutes  

-

-

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