ICM, the leading London-based FX and CFDs provider, reported that the US stocks ended higher after a choppy trading session supported by the gains of technology stocks whereas gold tumbled to a fresh 2018 low.
Wall Street finished the first day of the third quarter in the positive territory. Major US indices started the day with heavy losses but the rebound in technology shares and the absence of new trade tensions, helped indices to erase losses and finish on slight gains. The Dow Jones Industrial Average reached a low of 24026 but managed to end the session at 24286, as per ICM trading platform. SPX500 gained 0.3% and the heavy-tech index, Nasdaq, rose by 0.8%. On the other hand, President Trump revealed that he will be meeting with the European Union soon to discuss trade conflicts. Moreover, he also talked to the newly-elected Mexican President, Lopez Obrador, about trade/NAFTA. Investors will remain cautious as we approach the China tariff deadline.
ICM stated that the dollar index which measures the greenback against a basket of major currencies ended the day higher, to recover part of Friday’s losses. The dollar rose for the fifth consecutive day against the Japanese Yen, and the strong performance continued towards the Asian session, where the USDJPY reached a high of 111.13, as per ICM trading platform. The ISM Manufacturing PMI for June rose above 60 for the first time in three months and posted a reading of 60.2. The economic reports continue to show that the US economy is outperforming its rivals which supports the monetary policy stance of the Federal Reserve.
The Euro weakened against the United States dollar to trade at a low of $1.1591. However, the outcome of the meeting between the German Chancellor Merkel and Interior Minister Seehofer supported the single currency to erase some of its losses. Seehofer said that they reached a clear agreement on the migration issues. The EU summit reached a migration deal last Thursday, and it is acting as a key mover in the market.
Gold prices tumbled to a fresh 2018 low, down five percent this year. Gold traded at a low of $1238 is only three dollars away from posting a one-year low. The World Gold Council noted earlier that the gold demand fell sharply since the beginning of 2018. However, the five percent drop could attract some long-term buyers. On the other hand, the silver ounce drifted lower to reach a low of $15.75, as per ICM cTrader platform.
Oil prices were mixed yesterday as the West Texas Intermediate rose to cover the gap while Brent oil tumbled to end the day lower. WTI started this week at $73.56 and managed to settle at $74.04 on Monday’s close whereas Brent opened at $78.28 and closed lower at $77.45. However, oil prices got a boost today from the developments in Libya. Libya lost nearly 850,000 barrels per day in production due to the crisis. On the other hand, ICM noted that the spread between WTI and Brent oil narrowed after reaching almost eleven dollars in early June.