E.U. Markets Open Higher
Gold Prices Rally
Dollar Dips on Yellen Comments
Market Recap – This week in a nutshell:
E.U. Markets wobbled this week as investors reacted to disappointing industry surveys and kept a close eye on oil. Oil prices gains eased midweek after government data revealed a drop in U.S. crude and fuel stockpiles and a rise in oil production. The greenback also eased against the Japanese yen on Wednesday, after Federal Reserve Chair Janet Yellen stated that future interest rate hikes would be gradual.*
Thu, July 13: In Today’s Markets…
1. E.U. Markets Open Higher
European stock markets started the day higher on Thursday morning as investors focus on additional comments by U.S. Federal Reserve Chair Janet Yellen who will testify to Congress for a second day on Thursday. Yellen is set to testify for a second day on the institution’s monetary policy after a speech that was deemed as mainly dovish by many market participants. In other news, U.S. Markets remain sensitive to allegations concerning U.S. president Donald Trump and his involvement with Russia during last year’s presidential election campaign.*
2. Gold Prices Rally After Yellen Points at Gradual Tightening
Gold prices rallied on Thursday morning after U.S. Federal Reserve Chair Janet Yellen stated that the central bank would only gradually tighten monetary policy. Yellen’s testimony curbed speculation that interest rates would rise more than once this year and caused the dollar to dip which in turn increased demand for the dollar denominated metal. Specifically spot gold rose 0.3 percent to $1,222.39 per ounce as of 6:25 GMT. It should be noted that a weaker dollar and falling rates will continue to push gold prices higher, but current strength in U.S equities will cap earnings.**
3. Dollar Dips on Yellen Comments, Loonie Reaches 13 Month Highs
The dollar dipped against its major peers today after Federal Reserve Chair Janet Yellen dispelled any hopes for more rate hikes this year. Market attention is currently turned to U.S. inflation data and its potential impact on Fed policy. It should be noted that U.S. consumer price index (CPI) numbers are due on Friday.
In Canada, the Central Bank raised interest rates for the first time in roughly seven years on Wednesday, stating that the economy no longer needed as much stimulus. The Canadian dollar which was also boosted by a rise in crude oil prices rallied by more than 1 percent to reach 0.7873 overnight, reaching its strongest value since June 2016.***
*Source: Investing.com
**Source: CNBC
***Source: StockNews.com
