According to the news report by Bloomberg, thanks to gains in the technology as well as health care sectors, the US stock market pushed up higher for the fourth day in a row.
After the Turkish government increase rates once more, the Turkish lira jumped up. In contrast, the value of the dollar fell once data showed that one gauge of underlying American inflation had cooled down unexpectedly in August.
The stock market pulled back after its intraday highs after Trump’s tweet that the US was under no pressure to reach any kind of a trade agreement with China. Thus, while the question of how international trade will settle itself continues to dominate investor sentiment, the consumer price data as well as the technology sector’s rally is what has keep the market buoyant.
The MSCI Asia Pacific index went up for the first time after 11 sessions of lows. Both Shanghai and Hong Kong saw equities gaining in value yesterday.
According to Independence Advisor Alliance’s chief investment officer, Chris Zaccarelli, the main thing about these current market gains is that it feels more like a relief rally. For the last few weeks, there has been extreme negativity and pessimism in investor sentiment because of the potential new trade tariffs being put in place.
The British pound also rallied after the Bank of England maintained the expected steady interest rates. In fact, the pound also strengthened because of the US dollar slipping in value.
The Euro also saw gains after the European Central Bank’s (ECB’s) forecast hold on rates. Additionally, ECB President Mario Draghi stated that he was confident that wages were going to grow and there was a positive outlook about inflation in the EU.
At the end of the day, it seems that the markets are cautiously celebrating the news that the American and Chinese governments are working on sorting out the details for a fresh round of negotiations with regard to trade. This news came just a few days after Trump had threatened that his administration was going to impose tariffs on pretty much all imports from China.
Because of the ongoing trade war, the emerging markets were the worst hit in this time. However, with the news of possible negotiations between the two super powers, equities in the emerging markets also saw gains.
In the commodities markets, the price of oil slipped after two days of gains on the outlook that supplies were going to be lower. Additionally, as the wind speeds of Hurricane Florence have reduced and the intensity of the storm has lessened, thereby lessening the potential impact on commodities markets.
In the stock market, the S&P 500 gained 0.5% in trading, while the Dow Jones Industrial Average also went up by 0.6% and the Nasdaq Composite Index rose by 0.8%.
The STOXX Europe 600 dropped by 0.2% and the UK FTSE 100 also dropped by 0.4%. Germany’s DAX index went up by 0.2% in trading. The MSCI Emerging Markets index gained the most, going up by 1.4%. The MSCI Asia Pacific index also went up by 1%. This is the highest the index has been in more than two weeks.
In currencies, the Bloomberg Dollar Spot Index fell by 0.3%, the Euro went up by 0.5% to trade at $1.1684. The British pound was also up by 0.5% to trade at $1.3106. The Turkish lira finally saw gains, soaring by 4.1% to trade at 6.0925 to the dollar.
Crude oil went down by 2.3% to trade at $68.78 per barrel and gold fell by 0.4% to trade at $1,201.43 per ounce.