Daily Analysis - 10/10/2019
According to Turkish President Recep Tayyip Erdogan Turkey has begun a military engagement in northern Syria. The announcement came just days after Trump's government published its provocative decision to remove U.S. troops from the specific are in Syria. Erdogan wrote on Twitter “Turkish Armed Forces together with the Syrian National Army against PKK / YPG and Daesh terrorist organizations in northern Syria. And added “Our aim is to destroy the terror corridor which is trying to be established on our southern border and to bring peace to the region.”
On Thursday the safe haven Gold climbed to a one-week top while decreasing beliefs for a breakthrough in the progress of the continuing U.S.-China trade discussions sent stock markets under and urged investors to run for cover – embracing gold. U.S Gold futures advanced 0.3% to $1,516.49. Spot gold surged 0.4% to $1,511.23 per ounce.
On Thursday oil dropped due to fears of a more moderate interest, while U.S. -China trade talks, world’s biggest oil users this week, are not going to support the completion of the ongoing trade war but continuing to feed fears regarding the global market.
China, the world’s largest oil importer, has reduced its expectations concerning the discussions this week and it's not sure that there can be an agreement between the two countries. Brent crude futures dropped 11 cents to $58.20 a barrel while U.S. West Texas Intermediate (WTI) futures fell also 11 cents to $52.48 per barrel.
On Wednesday U.S. Stocks grew after three days of declines while traders expected that the trade war would ease. The U.S.-China trade discussions are going to start on Thursday. The S&P 500 soared 0.9% while the Dow Jones Industrial Average advanced 180 points. The Nasdaq Composite improved 1%. Stocks limit their profits following Reuters report that China had reduced their expectations for the trade discussions.
