Dow had its best day of the year

Daily Analysis - 05/06/2019

Dow gained more than 500 points

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On Tuesday stocks rose, ascending back from a long retreat in the past 30 days. The surge came after Jerome Powell, Federal Reserve Chairman indicated that the central bank is probably going to allow a softer monetary policy to save the economy. However, what strongly supported the markets are the eased trade tensions amid comments by China and Mexico.

The major indexes registered their second-best day of this year. Nasdaq Composite gained more than 2.5% to 7,527.10. The Dow Jones Industrial Average rose 512.39 points or 2% to 25,332.17 while the S&P 500 surged 2.1% to 2,803.26.

Fed rate cut supports Gold


On Wednesday the popular yellow metal Gold rose. Gold is now near the 120-day high reached in the last trading session, while the greenback declined on increasing possibilities of a rate cut by the U.S. Federal Reserve. U.S. gold futures went up 0.2% to $1331.00 an ounce while the Spot gold gained 0.1% at $1,326.53 per ounce having touched its highest level since Feb. 27.

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Oil prices decline due to U.S supply worries


On Wednesday Oil renewed its fall, pulled downward by a surprise increase in U.S. inventories. Another factor for the fall was the comments from the Rosneft, the head of the Russian state oil producer regarding the deal with OPEC to withhold supplies. U.S. WTI crude fell by 32 cents, at $53.15 a barrel. Brent futures dropped 27 cents to $61.70 a barrel.

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Greenback slightly lower


On Tuesday after Federal Reserve Chair Jerome Powell comments the U.S. dollar moderately went lower. Jerome Powell opened the door to the possibility of an interest rate cut due to economic uncertainties, including the global trade conflict. Powell said the Fed was “closely monitoring the implications” of the trade conflict.

The dollar index, which gauges the greenback versus a basket of six competing currencies, lost 0.09% on the day at 97.056.

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