Know the most significant bits on global markets this past week.
By Markets Chimp
2/19/18 11:00 PM
US equities managed to pass a tough test last week, as all indices succeeded in snipping 2 weeks of consecutive and severe losses. The week witnessed gains for the Dow of 4.25%, while S&P 500 was up by 4.30%. Meanwhile, Nasdaq advanced 5.58%. European equities have had a good ride too, although it wasn’t as intense as that in the US. DAX went up by 2.85%, at a time when the French CAC scored 3.98% and the UK FTSE inches up 2.85%, all on a weekly basis. US trading in this past week was featured by equities totally shrugging off the pressure of increasing yields on US Treasuries, which initially did visit a 4-year high. However, on Friday Wall Street’s early session gains were erased lately as Grand Jury in the US indicted 13 Russians of interfering in the US 2016 presidential elections.
We have been seeing a sharp jump in US Treasury yields for about 3 weeks now. This has directly contributed to higher chances of Fed tightening more than what’s planned in 2018. Yet the US dollar is still losing ground. The greenback slipped some 1.50% on the back of other major currencies appreciation, despite a slight rebound on Friday (Read it here). The euro initially climbed to its highest level since mid-December 2014 and was up 1.39% for the week, while the Japanese yen soared 2.39%. It would appear as if the markets are weighing which monetary policy tightening will be more attractive, and still it’s the ECB and the Bank of Japan together constituting the answer. Meanwhile, the output combination between a substantial tax cut in the US and giant infrastructure spending plan will likely drive market sentiment for the dollar in 2018. Next week will mark the release of Germany’s fourth quarter GDP data, as well as the Eurozone CPI, which will be very critical for the fate of euro rally.
After a disastrous week for the oil market (the week before the past week), oil prices managed to absorb the 9% shock and rebounded partially. Brent oil rose to USD64.88, jumping by 3.33%. Focus will be on US crude oil inventories next Thursday. The market will look closely to evaluate US output, wondering if it will continue to dampen OPEC production cut which will last to the rest of 2018.
Gold was handed another opportunity this past week. After two weeks of fierce losses, the safe haven sticked to the dollar weakness, gaining 2.58%. The rebound of gold price last week carried the yellow metal from its 2018 lows to just shy of USD1,365. However, the strength in the US dollar on Friday helped put a lid on gold’s bounce during the week.
If you were lucky enough to read our CrypToday report (Join our Telegram channel for exclusive access), you would have made large profits this past week. As our report showed extreme bullishness on Bitcoin performance, once it seized the USD9,000 level. At the time of writing these lines, Bitcoin price was trading at USD10,800 (a gain of more than 25% in a week!). Gains were even greater on Litecoin, as the cryptocurrency was up by more than 40% based on speculations that the coin will have an offshoot just like Bitcoin and Bitcoin Cash. The new fork will result in the introduction of Litecoin Cash, which encouraged massive buying on Litecoin eventually.