Wall Street's major indexes rose on Tuesday, with the S&P 500 and Nasdaq hitting record highs, gaining 1.1% and 1.4% respectively, after July's inflation data largely met expectations. The Consumer Price Index increased 0.2% month-over-month and 2.7% year-over-year, easing concerns about rising prices amid ongoing trade tensions. This bolstered expectations for a Federal Reserve rate cut next month, with traders pricing in about a 90% chance of a 25-basis-point reduction in September. The Dow climbed 483 points, supported by easing trade tensions after President Trump extended a 90-day...
Gold's price (XAU/USD) is holding on to intraday gains on Monday, trading near $2,947 at the time of writing, supported by a weaker US Dollar (USD) and softer US yields in a reaction to the recent German federal election outcome. Although the far-right party Alternative for Germany (AfD) has gained 20% of votes, the Christian Democratic Union of Germany (CDU) is comfortable in the lead with 208 seats against AfD's 152. US yields dropped off and the CME Federal Reserve (Fed) Futures are now favoring a 25 basis points (bps) rate cut in June, where last week odds were rather for no rate cut in...
The US Dollar Index (DXY), which tracks the performance of the US Dollar (USD) against six major currencies, recovers the nearly 0.50% loss it incurred in the opening hours in the Asian markets and trades flat near 106.60 at the time of writing on Monday. The initial move down in the US Dollar came in due to euphoria for the Euro (EUR) after the first German election results showed a firm lead for the Christian Democratic Union of Germany (CDU), which will take the lead in forming a coalition. As the dust settles, this means that fundamentally, no big changes will take place in Germany...
Gold prices edged up on Monday to trade near its record peak, helped by a weaker U.S. dollar, while investors looked ahead to a key inflation report due later this week to gauge the Federal Reserve's interest rate trajectory. Spot gold rose 0.3% to $2,943.50 an ounce as of 0957 GMT after scaling an all-time high of $2,954.69 last week. U.S. gold futures added 0.2% to $2,958.20. "The dollar's move lower this month has enabled spot gold to be kept around its record highs, supported by a surge of inflows into bullion-backed exchange traded funds," said Han Tan, Exinity Group chief market...
EUR/USD gives up most of its intraday gains after revisiting the one-month high near 1.0530 in Monday's European session. The major currency pair surrenders significant gains as the Euro (EUR) weakens in the aftermath of the German federal election, with the absence of a clear majority by a single party that would hinder growth in the already fractured economy. Christian Democratic Union of Germany (CDU) leader Friedrich Merz is set to become the German Chancellor after getting majority votes but is expected to face a slew of difficulties, including complicated negotiations to form a...
Oil prices extended last week's losses on Monday as investors awaited clarity on talks to end the war in Ukraine and weighed up the prospect of a resumption in crude exports from northern Iraq. Brent futures were down 14 cents, or 0.2%, at $74.29 barrel by 0843 GMT, while U.S. West Texas Intermediate crude futures lost 21 cents, or 0.3%, to $70.19. Both Brent and WTI dropped by more than $2 on Friday, registering weekly declines of 0.4% and 0.5% respectively. All eyes remain on efforts to end Russia's war on Ukraine, which enters its fourth year on Monday. Officials said on Sunday that...