ICM: US Stocks Soar on U.S./Mexico trade deal

ICM, the leading London-based FX and CFDs provider, reported that US stocks rose with SPX500 and Nasdaq posting record close for the second consecutive day as the trade deal between the United States and Mexico improved investor’s risk appetite.

Wall Street closed higher on Monday boosted by the trade agreement reached by the United States and Mexico which eased trade tensions. As per ICM trading platform, the Dow Jones Industrial Average gained one percent to 26049, its highest close since early February. The SPX500 traded at a record high of 2898 and settled at 2896, whereas the tech-heavy Nasdaq Composite traded above 8000 for the first time and logged a record close of 8017. Trump is happy with the current situation with Mexico and said that the deal would support manufacturers and farmers. Moreover, he is eager to reach a deal with Canada. Regarding China, Trump said that it is not the right time to talk, Chinese officials headed to the United States last week for trade talks, but the two-day meeting terminated with no progress.

ICM highlighted that the dollar index which measures the greenback against a basket of major currencies fell to trade near a one-month low as the dollar selling round continues following Powell’s Jackson Hole speech. DXY traded at a low of 94.68 during the Asian session. The dollar index strengthened earlier this month while serving as a safe haven, but it lost most of its gains due to the enhanced investor’s risk appetite. As per ICM trading platform, the EURUSD climbed to a four-week high of $1.1697, and the GBPUSD reached a high of $1.2901. The CB consumer confidence is due today where market participants will be able to grab a hint about consumer spending that plays a major role in the overall economic activity.

Gold prices surged to their highest level in two weeks supported by the drop in the U.S. dollar. As per ICM trading platform, the gold ounce reached a high of $1212 during the Asian session. On the other hand, the silver ounce also traded at a two-week high of $14.92.

Oil prices ended higher for the second consecutive day supported by supply disruption and lower OPEC production. The International Energy Agency warned from the lower supply from Venezuela, Libya, and Nigeria. On the other hand, the monitoring committee of OPEC reported that oil producers reduced their production by nine percent more than required. As per ICM trading platform, the West Texas Intermediate crude futures settled at $68.87 per barrel, and the Brent futures ended at $76.29 per barrel. The American Petroleum Institute will report the weekly US crude oil stock later today.

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