Three major US indexes closed at new record highs after a lower-than-expected inflation report raised the possibility of a Federal Reserve interest rate cut later this year and prompted investors to shift to riskier assets. The S&P 500 rose 0.8%, the Nasdaq rose 1%, and the Dow Jones Industrial Average rose 470 points. Technology stocks led the rally, with AMD and IBM surging 7.5% and 8.77%, respectively, after IBM said it had successfully implemented a key quantum error correction algorithm on AMD chips, boosting sentiment across the sector. Intel rose 1.6% after returning to...
Gold fell around 0.6% to around $3,325/oz during Thursday's European session, after selling pressure emerged every time the price approached $3,350. The tone of the July FOMC minutes, which emphasized the need for clarity on the impact of tariffs on inflation, kept the market restrained and kept the US dollar strong - a combination that was less than favorable for gold. However, there are differing views within the Fed. Michelle Bowman and Christopher Waller believe a 25 bps cut is preferable because they prioritize cooling the labor market. Officially, the Fed held interest rates at...
Gold prices weakened slightly on Thursday (August 21st) after the minutes of the US Federal Reserve's July meeting showed a majority consensus to keep interest rates on hold, as investors awaited the central bank's annual Jackson Hole symposium later for further policy guidance. Spot gold prices fell 0.2% to $3,340.09 per ounce, as of 08:02 GMT. US gold futures for December delivery also fell 0.2% to $3,382.30. The minutes of the Fed's July meeting showed that policymakers who disagreed with last month's decision to keep interest rates on hold – Vice Chair Michelle Bowman and Governor...
Oil prices rose on Thursday (August 21st), boosted by signs of strong demand in the United States, with uncertainty over efforts to end the war in Ukraine also providing support. Brent crude futures approached a two-week high and rose 46 cents, or 0.7%, to $67.30 a barrel at 08:17 GMT. U.S. West Texas Intermediate (WTI) crude rose 50 cents, or 0.8%, to $63.21 a barrel. Both contracts rose more than 1% in the previous session. Russia said on Wednesday that efforts to resolve Ukraine-related security issues related to the war without Moscow's participation were "a futile path." "If the White...
The U.S. dollar held below its one-week high on Thursday (August 21st), and European stock markets opened flat as investors prepared for three days of potentially market-moving news from the Federal Reserve's annual symposium in Jackson Hole. Central bankers from around the world will attend the event, which begins later, with the primary focus being Fed Chair Jerome Powell's speech on Friday, while traders try to gauge the chances of a September interest rate cut. The pan-European STOXX 600 and Germany's DAX were little changed at the open. The UK's FTSE 100 rose 0.1%, while France's CAC...
USD/CHF appreciates after registering nearly 0.5% losses in the previous session, trading around 0.8050 during the Asian hours on Thursday. The pair appreciates as the US Dollar (USD) receives support after the release of the Federal Open Market Committee's (FOMC) Minutes for the July 29-30 meeting on Wednesday. Swiss Trade Balance data will be eyed later in the day. Focus will be shifted to the preliminary S&P Global US Purchasing Managers Index (PMI) data due later in the North American session. The Fed minutes indicated that most Federal Reserve (Fed) officials emphasized that...