Yahoo Finance’s Seana Smith and Jared Blikre on the biggest stories moving the markets in midday trading Wednesday.
Investing.com – Gold prices hovered above session lows Wednesday as fears of a full-blown trade war between the U.S-China eased, sending U.S. bond yields higher, hurting demand for safe-haven gold.
The dollar saw muted action Wednesday, as major currency trading calmed somewhat, a day after fears of a trade war between China and the U.S. sparked fresh haven buying. The U.S. ICE Dollar Index (IFUS:DX-Y.NYB), which measures the greenback against a basket of six rivals, was little changed in negative territory at 95.095, after touching an 11-month peak on Tuesday, underlining a period of relative placidity after markets were thrown into a tizzy after the U.S. threatened to place tariffs on an additional $400 billion worth of Chinese imports and Beijing warned it would retaliate. A broader gauge of dollar strength, the WSJ Dollar Index (CALCULATED:BUXX), was 0.1% stronger at 88.31.
Investing.com – The U.S. dollar was roughly unchanged against its rivals Wednesday as softer U.S. economic data and a rebound in sterling kept a lid on upside momentum.
Traders looking to get bullish on the British pound ahead of Thursday’s Bank of England meeting might want to try taking the dollar out of the equation, analysts said. Sterling (GBPUSD) hovered around a 7-month low versus the dollar ahead of the central bank meeting, thanks in part to a nearly relentless rally by the U.S. currency that began back in April. To get around that, traders looking for a more hawkish tone from the Bank of England might look to the euro-sterling (EURGBP) pair, which is also seen as a more accurate Brexit risk barometer, analysts said.
Germany's finance minister on Wednesday defended a euro zone reform blueprint agreed with France against criticism by Chancellor Angela Merkel's conservatives that it could undermine monetary stability. Members of Merkel's conservative bloc opposed to larger financial contributions to the euro zone criticised her agreement with French President Emmanuel Macron to create a common budget for the currency bloc. Merkel and Macron hailed a "new chapter" for the euro zone after talks at the Meseberg retreat outside Berlin on Tuesday where they praised the budget as a tool to strengthen economic competitiveness in the currency union.
Gold prices were steady at a six-month low on Wednesday, as the greenback rose and trade tensions waned. Comex gold futures for August delivery were down 0.20% to $1,276.10 a troy ounce as of 10:38 AM ET (14:38 GMT). Trade tensions between the U.S. and China eased but still remained on the back of investors minds, as the two largest economies in the world faced a tit-for-tat over trade tariffs.
The S&P 500 gained six points or 0.25% to 2,769.56 as of 9:41 AM ET (13:41 GMT) while the Dow composite increased 26 points or 0.11% to 24,664.33 and tech heavy NASDAQ Composite rose over 40 points or 0.52% to 7,766.07.
Investing.com – U.S. futures were higher on Wednesday as trade tensions died down.The S&P 500 futures were up 10 points or 0.36% to 2,776.25 as of 6:45 AM ET (10:45 GMT) while Dow futures increased 127 points or 0.51% to 24,842.0. Meanwhile tech heavy Nasdaq 100 futures rose 26 points or 0.36% to 7,278.25.Trade tensions between the U.S. and China still remained on the back of investors minds, as the two largest economies in the world faced a tit-for-tat over trade tariffs.Stocks tumbled on Tuesday after U.S. ...
Investing.com - The pound was trading close to seven month lows on Wednesday as Prime Minister Theresa May’s government faced another crunch vote on Brexit.
Based on the early price action, the direction of the gold market today is likely to be determined by trader reaction to a pair of downtrending Gann angles at $1278.40 and $1281.00.
Based on the early price action, the direction of the EUR/USD on Wednesday will be determined by trader reaction to the downtrending Gann angle at 1.1531. This angle also forms a support cluster with yesterday’s low at 1.1531.
The European Union will begin implementing tariffs on €2.8 billion ($3.2 billion) worth of goods imported from the U.S. on Friday, the European Commission said Wednesday. The "rebalancing measures" are in response to the U.S. imposing respective tariffs of 25% and 10% on aluminum and steel imports from the EU on June 1, the commission said. Agricultural goods and other U.S. products will also be hit with levies.