Daily Analysis - 18/12/2019
On Wednesday Oil reversed following an increase of more than 1% in the last trading session. The fall came while the US industry figures revealed an increase in build in crude stocks. However, fears for a more substantial increase in stocks for 2020 marked a more profound decline in prices. The “phase one” US-China trade agreement published last week helped ease some stress from the oil market. The stress came from concerns over the economic consequence of continued conflict between the world’s two largest oil buyers. Brent crude futures lost 21 cents, to $65.87 a barrel today. The international benchmark grew 1.2% to $66.09 a barrel yesterday.
On Wednesday Gold remained limited while confusing information about the US-China trade agreement countered positive economic numbers that came out of the United States.
Spot gold was exchanging at $1,475.54 per ounce while US gold futures were even at $1,480.19. The more than a year-long tax conflict and its consequences on the global market have forced the safe-haven metal to the upside for nearly 15% so far for the year 2019.
On Wednesday The GBP sustained substantial damage following fears that the UK may face eventually a hard Brexit situation. The fears arose after Britain re-set a hard deadline for leaving the European Union, resuming old concerns of a disorganized departure from the bloc. The 1.6% fall was the most precipitous in more than 12-months and cleaned out profits following Prime Minister Boris Johnson’s electoral victory last week.
The S&P 500 increased slightly to a new all-time top yesterday and registered its highest winning streak since last month.
The broad index ended just above the flat-line at 3,192.51 and touched an intraday record of 3,198.24. The S&P 500 also ended above for the fifth straight trading session. The Dow Jones Industrial Average and Nasdaq Composite finished the session with a record closing top. The Dow rose more than 31 points, to 28,267.15.
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