Daily Analysis - 08/10/2019
On Monday US Stocks dropped while traders anticipated the US-China trade discussions. The negotiations are set to open later this week. The Nasdaq Composite fell 0.3% to end at 7,956.28.
The Dow Jones Industrial Average lost more than 95 points reaching 26,478.01. The S&P 500 dropped 0.5% to 2,938.78 while the indexes fluctuated within small profits and losses. The CEO of Ladenburg Thalmann Asset Management Phil Blancato said “Any real change or breakthrough is unlikely, but positive talks are going to be a catalyst for the market,” He emphasized the fact that this week will further provide investors evidence regarding the market before going into year-end.
On Tuesday the popular yellow metal Gold moved lower for the third day constrained by a more powerful dollar and an uptick in stocks before the expected US-China trade discussions in the US.
U.S gold futures fell 0.6% to $1,495.19 while Spot gold dropped 0.2% to $1,489.79 per ounce. The U.S. dollar versus a basket of major rival currencies gained around 98.97.
On Tuesday Oil grew, boosted by last night’s increases in industrial commodities. The boost came while unrest in oil-producing countries Iraq and Ecuador increased fears of a possible supply interruption. That fact provided additional support to the popular commodity. The US West Texas Intermediate (WTI) crude went up 33 cents to $53.07 while Brent crude rose 38 cents, to $58.72 a barrel.
On Tuesday the greenback gained support as traders anticipated a result regarding the US-China trade discussions in Washington. Investors moved with caution because neither the US nor China gave any indications of solid willingness to end the dispute.
The US dollar advanced overnight while risk aversion and no clear evidence for a breakthrough trade deal pushed trade-exposed currencies such as the Australian and New Zealand dollars, lower.
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