Greenback at 2-year highs

Daily Analysis - 30/05/2019

U.S Dollar rose due to trade war fears


On Thursday the popular U.S currency dollar supported by the increasing Sino-U.S. trade tensions and remained steady versus its main competitors which compelled traders to run for cover in safe-haven assets.

Versus a box of six main currencies, the greenback index went about 0.02% lower to 98.110, floating near of its two-year top of 98.370 touched the previous week. The popular index gained more than 2% for 2019.

As the deadlock between the two largest economies of the world showed no indications of a possible resolution, concerns of a blow to global growth made risk appetite within financial markets to decline.

Asian stocks went down due to trade war fears

On Wednesday Asia stocks fell while escalating pressures between the U.S. and China drove negatively investor's sentiment. Australian ASX 200 dropped more than 0.80% while nearly every sector went lower.

The Japanese Nikkei 225 moved 0.60% lower while the Topix index too fell nearly 0.5%.

South Korea’s Kospi opposed the prevailing trend and increased by more than 0.30%.

Mainland Chinese shares decreased by the afternoon, with the Shanghai composite moving down more than 0.80%. The Shenzhen component fell almost 1.0%. The Hang Seng index in Hong Kong, discarded its initial profits to decline by 0.40%.


Oil went higher due to a decrease of crude stockpiles

On Thursday Oil increased following a report that revealed a drop in U.S. crude stockpiles that surpassed expert expectations.

Brent crude futures, the global benchmark for oil prices, gained 14 cents and went at $69.60 a barrel.

U.S.WTI crude futures went 26 cents higher to $59.06 a barrel. They ended Wednesday under 0.6% after touching their weakest level since March 12 at $56.87. All fell almost 1% in the previous trading session following a drop as low as $68.05.


Dow fell more than 200 points lower

On Wednesday stocks declined while bond yields decreased once more, raising fears regarding the economic sentiment. Rising trade pressures between the U.S and China also added more to the already negative financial environment. The Dow Jones Industrial Average fell more than 221 points to 25,126.40 while Nasdaq Composite decreased by 0.8% 7,547.30. The S&P 500 fell 0.7% to 2,783.01. The Dow quickly dropped more than 400 points as the 10-year Treasury note yield touched its low of the day.


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