Equities mixed as oil and dollar struggle overnight

Published date: 24/05/2019

It was another tough session on Wall St. as the major bourses lost ground again. It was the Nasdaq which fell the most losing 1.58% trading 7.628.28. Over in the Asia Pac area, Japan's Nikkei (0.16%) and Australia's ASX (-0.55%) both struggled while the main Chinese indices performed well. Much of the bearishness was down to weaker oil prices but the bullishness from China was down to comments from US president Trump who said a Huawei deal could be included in the final trade deal. 

Spot WTI tanked again yesterday and pushed through the $60/bbl level. Oil has now been suffering as inventory levels continue to rise with many analysts saying that the rise in US production is the main catalyst. 

As equities markets sold off and the dollar stuttered gold to the opportunity to rise. The yellow metal managed to break back above the $1280/oz mark once again and this morning starts the EU session at $1284.95/oz, 0.14% higher. 

Interestingly copper managed to bounce back from lows seen yesterday at $2.64/lb. The industrial metal has also started today's session in the black (+0.71%) and this largely seems down to the weaker USD.

Today we are on the lookout for UK retail sales, US durable goods data and comments from BoE's Woods and ECB's Nowotny.


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