Latest weekly updates on several asset classes in financial markets.
By Markets Chimp
1/21/18 7:31 AM
US equities were over the top once more, with the Dow jumping over the 26,000 level for the first time in its history. The index broke over the 26,000 level on 16 January before a sell-off sent the index below 26,000 once more. Trading was shadowed by potential government shutdown worries; however, throughout the week the market sort of fought such worries to close the week with 1.04% gains in hand. That said, we might get a reverse sentiment next Monday when the market opens and deal with the effective government shutdown that happened few hours ago on Saturday.
The US dollar continued to suffer at the beginning of the week versus its fellow currencies, namely the euro, the sterling, and the Japanese yen. Investors are still anticipating the start of a tighter monetary policy, which sent the US dollar near a 3-year low. Besides, the sentiment for the US dollar was already spoiled by fears over the potential government shutdown. As such, investors who are long the greenback may put on their seat belts due to the running of an actual government shutdown this Saturday.
The long oil rally that extended since last year faced a stopper this past week. Both crude and brent oil had their first weekly loss in five weeks. The price correction that started on 16 January was fueled by fears over the rapid appreciation in oil prices. It is believed that such a price appreciation should foster more production activities, particularly from the US, which would eventually pull prices back down.
The performance of gold was quite disappointing this week. The safe haven could not capitalize on the weakening of the US dollar for the last 5 weeks. While gold retreated for the first time in six weeks, investors should be asking many questions. The most important question to ask is how gold will likely respond to the effective US government shutdown.
It was a harsh week for cryptocurrencies. Big losses were counted on their market cap, with Bitcoin losing 9.34% for the past week. Ethereum lost nearly 16.24%, while Ripple lost about 20.62%. Losses were initiated due to an anticipated serious restriction this time to be placed by China and other South Asian markets. (Read it here and here).