Yen And Gold Higher
Oil Markets Lower
European Markets Open Lower
Last Week’s Recap: Hurricanes, Wildfires and Nuclear Tests Disrupt the Markets
Last week Hurricane Harvey caused a massive rally in oil prices as it disrupted U.S. production. The hurricane took the lives of more than 50 people and caused major oil refineries and pipelines to shut down. Devastation continued over the weekend as wildfires forced thousands to flee their homes across the West of the United States. As a final conclusion to a cataclysmic week, North Korea revealed that it had tested a hydrogen bomb over the weekend!*
Mon, September 4: In Today’s Markets…
1. Yen And Gold Higher After North Korea’s Latest Nuclear Tests
Demand for safe haven assets rose after North Korea said it had tested a hydrogen bomb over the weekend. Gold (XAUUSD) and the yen (USDJPY) edged higher in early Monday trading while markets were pressured by elevated tensions on the Korean Peninsula. North Korea conducted its sixth and most powerful nuclear test on Sunday, revealing that it had launched an advanced hydrogen bomb for a long-range missile.**
2. Oil Markets Lower As U.S. Refineries Re-Open
Oil markets (USOIL) noted a volatile start to the week with prices plummeting on Monday as U.S. refineries begun to reopen. International Brent (CL_BRENT) was also pulled down by a rally in gold futures following a powerful North Korea nuclear test. Oil prices retreated on emergency fuel stocks releases and on signs that the damage from Hurricane Harvey to the Gulf coast energy infrastructure was not as severe as anticipated. Indicatively, Colonial Pipeline says it expects to restart the main distillate line between Houston and Hebert tomorrow and the gasoline line between the two points by Tuesday.***
3. European Markets Open Lower
European Markets edged lower on Monday morning, as North Korea’s latest nuclear test prompted investors to rush to safe-haven assets. In response to Pyongyang’s latest provocations, South Korea carried out a live-fire exercise simulating an attack on North Korea. The missile drill saw ballistic missiles launched from fighter jets and from the ground. U.S. Defense Secretary James Mattis also warned that any threat from North Korea towards the U.S. and its allies would be met with a “massive military response”.
Meantime, markets are set to focus on Germany with just three weeks to go before the general election. Chancellor Angela Merkel appeared to hold her ground in a live television debate against political rival Martin Schulz on Sunday, as her overall performance in the debate was viewed as more convincing by 55 percent, compared to 35 percent for Schulz. U.S. markets will remain closed for Labor Day on Monday.***
You can find and trade all of the above mentioned equities and commodities on BDSwiss Forex/CFD platforms.
**Source: Seeking Alpha
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