Global stocks fell and gold rose after US President Donald Trump said in connection with North Korea's provocations that they would be welcomed with fire.
The dollar appreciated against other major currencies as a result of increased uncertainty.
The S&P 500 index ended with minimum daily values yesterday, following Trump's comments.
Trump's comments came after earlier yesterday from the capital of North Korea said they were ready to give Washington a cruel lesson of available strategic nuclear power in any US military action.
Serious increase also registered the volatility index. After the previous day VIX ended at a level below 10 points, it grew heavily yesterday, ending at its highest levels for a month.
The dollar rose by 0.5% against the euro to 1.1730 dollars for one euro.
Gold added about 1% to its value, following increased geopolitical tension, rising at trading levels of more than $1,273.
Wednesday, 9 August 2017
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Sunday, 6 August 2017
Oil ended the week with increase
Trading on Friday recorded an increase in oil prices amid signs of a slowdown in the growth of shale oil production in the United States. However, during the week, oil fell slightly against the backdrop of renewed concerns about the level of implementation of the agreement to reduce production by OPEC countries.
At the close of trading on Friday, September futures for WTI rose by $0.55, or approximately 1.1%, ending Friday's session at $49.58 a barrel.
By the close of Friday trading on the London Commodity Exchange ICE Futures Exchange, October futures for Brent crude rose by $0.41, or approximately 0.8% to $52.42 a barrel.
At the close of trading on Friday, September futures for WTI rose by $0.55, or approximately 1.1%, ending Friday's session at $49.58 a barrel.
By the close of Friday trading on the London Commodity Exchange ICE Futures Exchange, October futures for Brent crude rose by $0.41, or approximately 0.8% to $52.42 a barrel.
Gold down after NFP
Gold prices fell on Friday after a good report on employment in the US, which resurrected forecasts for another increase in the Fed's interest rate before the end of this year.
August gold futures settled at $1258.28 at the New York Exchange COMEX. For the week, gold fell by 0.8% for the first time in four recent weeks.
The forecast for a faster increase in the interest rate leads to a decrease in the price of gold, which is traded in dollars. With an increase in the cost of credit, companies' stocks become more attractive.
For this year, gold prices have risen by about 9%, in part because of forecasts that the Fed will tighten monetary policy gradually.
August gold futures settled at $1258.28 at the New York Exchange COMEX. For the week, gold fell by 0.8% for the first time in four recent weeks.
The forecast for a faster increase in the interest rate leads to a decrease in the price of gold, which is traded in dollars. With an increase in the cost of credit, companies' stocks become more attractive.
For this year, gold prices have risen by about 9%, in part because of forecasts that the Fed will tighten monetary policy gradually.
Saturday, 5 August 2017
Another ten years of growth for the US markets?
US stocks can enjoy a good performance over the next decade, according to a leading strategist at the Bank of America Merrill Lynch.
In an interview with CNBC, Mary Ann Bartels says the market is in a secondary bullish trend and most likely are ahead of 10 years of rise.
Bartels believes, however, that the index direction will not only be upwards.
According to her, there will still be bearish markets, but the question will be whether we are witnessing bearish markets or just correction. According to Bartels, there are no signs of a fundamental and technical point of view for the bearish market.
In an interview with CNBC, Mary Ann Bartels says the market is in a secondary bullish trend and most likely are ahead of 10 years of rise.
Bartels believes, however, that the index direction will not only be upwards.
According to her, there will still be bearish markets, but the question will be whether we are witnessing bearish markets or just correction. According to Bartels, there are no signs of a fundamental and technical point of view for the bearish market.
ANZ: The bearish attitudes to the dollar are overexposed
The US dollar received a serious "slap" this year, with the dollar index down by 9% since the beginning of the year. Not all analysts, however, are so negative towards the dollar.
The political uncertainty surrounding the Trump administration is cited by ANZ analysts as the main reason for the "excessive depreciation of the dollar" over other major currencies.
Leverage funds currently have a net short position in the dollar, which has taken the levels of "green money" far beyond the foundation, analysts said.
The weakness of the underlying reserve currency became a reality, despite the rise in Fed's interest rates, which outstripped other central banks around the world. In addition, the Fed's balance sheet is expected to start shrinking relatively soon, which will be another factor that will work to support the US dollar.
The political uncertainty surrounding the Trump administration is cited by ANZ analysts as the main reason for the "excessive depreciation of the dollar" over other major currencies.
Leverage funds currently have a net short position in the dollar, which has taken the levels of "green money" far beyond the foundation, analysts said.
The weakness of the underlying reserve currency became a reality, despite the rise in Fed's interest rates, which outstripped other central banks around the world. In addition, the Fed's balance sheet is expected to start shrinking relatively soon, which will be another factor that will work to support the US dollar.
Friday, 4 August 2017
The dollar went up after the release of the US employment report
On Friday, the dollar moved up against other major currencies after a positive employment report allowed investors to forget about the continuing political tension in Washington.
On Friday, the US Department of Labor released a report on employment outside the agricultural sector, according to which 209,000 jobs were created in the US, which significantly exceeded the forecasts of experts of 183,000 jobs. The adjusted value showed that 231 thousand jobs were created in the US economy in June (the preliminary value was 222 thousand jobs).
After the value of 4.4% the unemployment rate in July fell to 4.3%, according to forecasts after a value of 4.4% in the previous month.
The average hourly wage in the US increased by 0.3% in line with the forecast and against an increase of 0.2% a month earlier.
On Friday, the US Department of Labor released a report on employment outside the agricultural sector, according to which 209,000 jobs were created in the US, which significantly exceeded the forecasts of experts of 183,000 jobs. The adjusted value showed that 231 thousand jobs were created in the US economy in June (the preliminary value was 222 thousand jobs).
After the value of 4.4% the unemployment rate in July fell to 4.3%, according to forecasts after a value of 4.4% in the previous month.
The average hourly wage in the US increased by 0.3% in line with the forecast and against an increase of 0.2% a month earlier.
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