Apple and the financial sector ended hopes for a three-day winning streak
Wall street was mostly lower on Thursday and traded within a narrow range as oil prices rose to 7-month highs. All three major benchmarks moved into negative territory early in the session, mostly dragged down by the financial sector, which was the worst performer among all sectors. Apple also weighed on the market as it traded around 0.5% lower. Furthermore. Apple and Goldman Sachs were the worst performers and accounted for most the declines seen in the Dow Jones Industrial Average. By mid-day, the Dow Jones fell 0.2%, the S&P 500 declined 0.15%, and the Nasdaq Composite remained virtually flat at 0.04% lower.
In the meantime, oil prices rose above $50 a barrel for the first time in seven months amid ongoing supply disruptions in Libya, Nigeria and Canada. However, prices later retreated from $50.21 to $49.47 a barrel. Investors are still skeptic of the recent gains as the likelihood of any price support from OPEC is slim due to ongoing conflicts within the organization.
This week’s major economic data releases conclude with U.S. GDP data and comments from the Federal Reserve’s Janet Yellen. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.
Gold has taken a hit on the prospect of U.S. interest rate hike next month
Gold dropped to a seven-week low on Wednesday’s trading session after positive U.S. economic data boosted expectations of a U.S. interest rate hike as early as next month. The precious metal fell more than 4% since last Wednesday when statements from Fed officials indicated that the central bank was preparing for a rate hike. Higher borrowing costs have a positive effect of the dollar’s value, making it more expensive to invest in gold. As of this writing, spot gold declined 0.26% to $1,223.27 an ounce.
European stock market rose higher and set the positive tone for Wall Street later on. The German DAX 30 added 1.47%, the pan-European STOXX 600 rose 1.3%, and the UK’s FTSE 100 0.7%. The financial sector was supported by reports that Eurozone finance ministers have offered Greece a ‘breakthrough’ deal in the country’s ongoing debt crisis. According to reports, the International Monetary Fund has agreed to rejoin the efforts in Greece’s bailout, increasing European investors’ confidence.
This week’s major economic data releases continue with the UK’s GDP data today, followed by U.S. durable goods later in the day. The week will conclude with U.S. GDP and comments from the Federal Reserve’s Janet Yellen on Friday. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.
A number of key sectors helped European shares post impressive gains
Stock markets in Europe extended their gains on Tuesday despite choppy early-session trading. Major benchmarks were supported by the banking, mining and retail sectors, which enjoyed a strong day. The pan-European STOXX 600 added more than 1.5% nearing the end of session. Other major indexes, including the German DAX 30, French CAC 40 and UK FTSE 100, all rose 1-2%.
Greece was the only exception among European markets with more than 1% in declines. The Greek banking sector retreated ahead of the upcoming meeting of EU finance ministers on Wednesday, where the country’s economic adjustment program will be reviewed following a series of delays and disagreements. As of this writing, crude oil gained nearly 0.5% to trade at $48.31 a barrel as investors expect a reduction in tomorrow’s U.S. oil supply report.
This week’s major economic data releases continue today’s U.S. oil supplies data. UK GDP data will be published on Thursday, followed by U.S. durable goods later in the day. The week will conclude with U.S. GDP and comments from the Federal Reserve’s Janet Yellen on Friday. For the most important binary options news, stay updated with OptionsClick, the top binary options trading broker.