ICM, the leading London-based FX and CFDs provider, reported that Wall Street reversed losses and closed higher despite the rising trade tensions between the United States and China. The greenback ended slightly lower on the optimism that Canada and the United States could reach a trade deal.
US stocks advanced on Tuesday, supported by the strong performance of the energy and technology sector. As per ICM trading platform, the Dow Jones Industrial Average and SPX500 gained 0.4% to 25971 and 2887, and the tech-heavy Nasdaq composite rose by 0.6% to 7972. The energy sector strengthened as the energy prices appreciated. On the other hand, China vowed to retaliate against the latest tariffs imposed by the Trump administration. China will ask the World Trade Organization for permission to impose sanctions on the United States. However, China reassured U.S. companies that it would not retaliate against them. Major U.S. indices remain vulnerable to the headlines concerning trade tensions.
ICM highlighted that the dollar index which measures the greenback against a basket of major currencies closed slightly lower after choppy trading during the day. DXY fell to a low of 94.88, rose to a high of 95.35, and settled at 95.11. The economic indicators continue to prove that the U.S. economy is robust and outperforming other economies. The U.S. Bureau of Labor Statistics reported yesterday that the U.S. employers had 6.939 million job openings in July. Market participants await the Producer Price Index of August to grasp a hint about inflation projection.
Gold prices traded near a three-week low as the dollar traded at the highs. However, the gold ounce rebounded from the lows to settle higher at $1198. The silver ounce traded at a fresh 2018 low of $13.94 but erased losses towards the end of the day and settled at $14.12
Oil prices jumped as the U.S. crude stockpiles fell last week. The American Petroleum Institute reported that the U.S. crude oil stock dropped by 8.636 million barrels to a total of 395.9 million. As per ICM trading platform, the West Texas Intermediate crude futures gained more than three percent to $69.85 per barrel, and the Brent futures added three percent to $79.46 per barrel, to log its highest close since May. The Energy Information Administration will publish the official U.S. crude inventories data later today.