UK Leadership race is on

Daily Analysis - 14/06/2019

Boris Johnson is the winner of the first round

On Thursday the race started in order to replace Theresa May as prime minister but also as the head of the ruling Conservative Party. The race started with the elimination of the Three of the 10 candidates on Thursday following their failure to receive the necessary support of at least 17 colleagues in close votes. The 3 are Esther McVey, Andrea Leadsom, and Mark Harper. The ideal to win the leadership race, for now, seems to be Boris Johnson, which he received 114 votes. His neighboring opponent, Jeremy Hunt, received only 43 votes. Environment Secretary Michael Gove received 37 votes.

Gold is going up, near a more than a year top

On Friday the popular yellow metal Gold advanced, and went closer to its more than a year top. It's top-level touched last week, while political turbulence accompanied with U.S. rate cut expectations supported the precious metal bullish momentum. U.S. gold futures climbed about 0.4% to $1,349.49 an ounce while Spot gold went up 0.3% at $1,345.48.

The popular metal has increased by 0.4% this week, putting the yellow metal back on track for its 4th consecutive weekly gain.

Middle East tensions creates confusion to Asia markets

On Friday Asia Shares traded mixed while oil increased after the attacks in the Gulf of Oman. The attack was on two tanker ships on Thursday.

Elsewhere, Japanese Nikkei 225 advanced more than 0.25% while South Korea’s Kospi went down 0.28%. Topix totaled 0.3%.

The Australian, ASX 200 went about 0.13% higher while the sectors mostly improved.

Oil prices went up after the attacks

On Friday Oil increased for a second straight day increasing its profits resulting from the attacks on two ships tankers in the Gulf of Oman. That situation sparked fears of decreased crude flows from one of the world’s most important shipping routes.

The attacks drove oil up 4.5% on Thursday, stopping the fall in prices in recent weeks over fears about global oil interest. Brent crude futures moved higher 50 cents a barrel and ended up 2.2% on Thursday.

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