European stock markets appeared calm on Tuesday, following a strong rally in the previous session. Major indices such as the STOXX 50 and STOXX 600 moved flat as investors chose to wait for new direction while assessing news from various major companies. The property and utilities sectors posted positive performances, followed by banking stocks, which also gained slightly. Conversely, stocks in the chemical and food and beverage sectors weakened. L'Oréal recorded a slight decline, while UniCredit rose slightly ahead of its latest financial report. On the positive side, Assa Abloy shares...
Oil prices rose as pressure on Russia's oil industry and the escalating conflict in the Middle East intensified. West Texas Intermediate (WTI) crude rose as much as 2% to $64 per barrel after Reuters reported that Russia's Transneft pipeline, which handles more than 80% of the country's oil, had restricted the company's ability to store crude. Ukraine attacked another Russian refinery overnight as Western nations considered new sanctions in an attempt to pressure President Vladimir Putin to the negotiating table. Ukrainian military forces have intensified drone attacks on Russian energy...
Gold surged past $3,700 an ounce for the first time on Tuesday as rising bets on a Federal Reserve rate cut this week fueled a rally fueled by safe-haven demand, central bank buying, and a weaker dollar. Spot gold rose 0.3% to $3,690.59 an ounce, as of 10:49 a.m. ET (1449 GMT), after hitting a record high of $3,702.95 earlier in the session. U.S. gold futures for December delivery rose 0.2% to $3,727.50. "Global growth uncertainty and geopolitical risks continue to keep safe-haven demand high, but gold's rally is largely driven by anticipation of aggressive interest rate cuts from the...
Gold appreciated for the third consecutive day on Tuesday as the US dollar tanked amid hopes of a dovish turn by the Fed on Wednesday. The US Dollar Index has dropped to fresh two-month lows, which buoys the precious metal to fresh record highs right below $3,700. Recent US data has highlighted a sharp deterioration of the labour market while inflation remains moderate. Speculation that the n¡bank might be behind the curve with rate cuts has boosted hopes that the bank will announce a widely expected quarter-point cut on Wednesday and hint at further easing down the road. Source: Fxstreet
Pound Sterling (GBP) gained modestly against the dollar but underperformed the euro as stagnant productivity, soft labor demand, and sticky wage growth underscore the UK's stagflation risk, BBH FX analysts report. Sterling lags euro amid soft UK labor backdrop"GBP/USD edged higher on broad US Dollar (USD) weakness. Pound Sterling (GBP) is underperforming against EUR. The UK July labor market data matched consensus." "The unemployment rate was unchanged for a third straight month at a four-year of 4.7% in July (BOE Q3 projection: 4.8%). Worrisomely, the vacancies-to-unemployment ratio...
EUR/USD remains near the upper end of its three-month trading range, with another test of 1.18 possible today. Despite a recent spike, implied volatility has retreated, underscoring calmer market conditions, Commerzbank's FX analyst Michael Pfister notes. EUR/USD seems to be struggling to break above 1.18"Last week, I discussed the possible factors that could push EUR/USD back above 1.18 in detail here. However, the fact that it feels like we have been trading within a fairly narrow range for the last three months must also be put into perspective. While it is true that EUR/USD seems to be...