Traders are risk averse this morning as geopolitical tensions weigh on markets. Gold climbed to its highest point since November in yesterday’s trading session. Today, the precious metal is adding to those gains, trading at $1274.67. Another beneficiary from the risk-off rhetoric is the Japanese yen. Like gold, the safe-haven currency is at its highest point since November of last year.
The VIX, a measurement of volatility in the market, climbed to a year high as North Korea threatened to take nuclear action if provoked. Meanwhile, Donald Trump has vowed to ‘’solve the problem’’ even without China’s help. Rex Tillerson, the US Secretary of State urged Russia to withdraw its support of Syrian leader President Bashar al-Assad.
As investors shy away from risker assets, oil prices are building on Tuesday’s gains. A barrel will now cost you $53.55. Brent oil rose by about the same, now at $56.42.
The Aussie dollar decreased by 0.1% against the dollar, tantalisingly close to a 2017 low. The dollar is trending downwards as investor’s re-funnel investments out of US assets.
US indices are chipping away gains, while European bourses are preforming better as investors favour European sentiment.
- S&P 500 is down 0.1% at $5397.50
- DJ 30 is slightly down at $20591.00
- Nasdaq 100 is down 0.9% at $5398.75
- DAX 30 up 0.10% at €12213.00
- CAC 40 up 0.12% at €5115.50
- FTSE MIB up 0.27% at €19745
- FTSE 100 down 0.05% at £7316.00
Watchlist
BP (LON:BP) global, a British petroleum company, is our stock to watch. Since the price of oil is tipping upwards, this stock could do the same. Since it is an equity, it should have more volatility and therefore more scope to move upwards or downwards.
BP is up 0.75% at £473.95.
News Today
09:00 GBP BOE Gov Carney Speaks
09:30 GMP Average Earnings Index 3m/y
11:00 USD President Trump Speaks
15:00 CAD Overnight Rate
15:30 USD Crude Oil Inventories
16:15 CAD BOC Press Conference