Fundamental analytics

Gold broke out consolidation range and gained to two-month highs, pressure on equities remains

Today, the focus of the market is upon main story of two last days the massive sales in the US equity markets. On Wednesday, US indices fell by 3% -4% percent. Until yesterday, 2018 was a very successful year for American stocks. US stocks were among the best funds to invest this year, despite rising interest rates.

The decline in the SP 500 led the quotes to a retest of its 200-day moving average (around 2765 points) for the first time in five months. The decline of the US stock exchanges on Wednesday led to a fall in markets in Asia — an average decline in markets by 3.5% -6.5%, with Taiwan showing the largest decrease (-6.3%).Earlier today European exchanges at their trading session continued to decline. European indices Euro Stoss50 and DAX show a decline of 1.50% -1.75%.

Today US indices continued their decline after their worst day in eight months. Weaker consumer prices compared with the expected data increase presumably lowered inflationary pressure, easing the situation interest rate hikes. The consumer price index increased by 0.1 percent last month, according to the Department of Labor data, expectations were around 0.2%.

In the currency markets, the dollar has designated a new local minimum today. The dollar index dropped to 94.66 points, but then it won back some of his losses. The euro continues to rise back above the level of 1.1515. Today the local maximum 1.1600 was designated. However, the biggest highlight of the day was the gold market. The gold market strengthened by 2.45% at the opening of the American trading session, gold overcame all levels and gained to a zone of a two-month high of $ 1215.

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