G-20 summit and the outcome

Weekly Report - 01/07/2019

President Trump and Premier Xi


The so much anticipated G20 Summit presented some great news. The President of the United States Donald Trump and the Chinese Premier Xi agreed to pause the continuing trade conflict between their countries and stop for now the increase of tariffs. While the discussions restarted all of these will make sense after we see how much improvement the two leaders made through the week. While news from the G20 Summit regarding the US -China trade talks were positive, increasing pressures in the Middle East continues. The news that came over during the weekend stated that the US has stationed stealth fighters in the Middle East. With the US equipped and ready the possibility of another dispute in the area is rising fast and creating uncertainty among the investors.

The Week that was

Last Thursday the popular yellow metal Gold secured a five-year top after a dovish US Fed that presented the possibility for further rate cuts, pushing US Treasury yields and the US Dollar.

Gold futures also took some good profits, growing more than 3% to $1,394.0 per ounce while spot gold hit its 5 years top. On the same day, U.S stocks also rose inspired by the strong gains in the energy and technology sector. The S&P 500 rose 1% to 2,954.17 while Nasdaq Composite improved almost 1% to close the day at 8,051.32. The Dow Jones Industrial Average closed 249.15 points above at 26,753.16.


Main Focus This Week

The OPEC and its allies are probably going to the extent the oil supply reductions up to the end of 2019 following the most significant producers on Sunday that approved a strategy pointed to support the price of crude.

Russia, OPEC, and other producers will meet on Monday and Tuesday to talk about the supply cuts. The group has been decreasing oil production since 2017 to limit prices from falling due to a decreasing global economy.


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