Investing.com – Take a peek at the top 5 things that rocked U.S. markets this week.
Expectations of UK interest rate hike spiked
GBP/USD surged earlier during the week, following bullish comments on an interest rate hike from the Bank of England chief economist Andy Haldane.
Haldane said he might join those calling for a rate rise in the coming months, adding that a “partial withdrawal” of the additional policy measures would be prudent “relatively soon.
Haldane’s comments caught investors off guard, as it came a few days after Bank of England governor Mark Carney said that there was no need to raise rates soon.
‘Cryptocurrency mania’ cooled as Ethereum suffered weekly slump
Bitcoin rebounded with a weekly gain but remained short of its peak of $3,000 while Ehtereum suffered its first weekly loss in three weeks.
The prices of both cryptocurrencies have ebbed and flowed throughout the week as investors questioned whether the virtual currencies could stage yet another rally and return to record highs.
Over the past year, ethereum and bitcoin have gained roughly 2306% and 340%, respectively.
Amazon claimed the corporate spotlight for the second-straight week
A week after announcing its $13.7 billion deal for Whole Foods, Amazon announced the launch of Prime Wardrobe, its new fashion platform.
Prime Wardrobe allows customers to order items like shoes, clothes or accessories at no upfront charge, paying only for the items they decide to keep.
At Friday’s close, shares of Amazon is up more than 30% over the past year.
Gold snapped two-week losing streak
Despite expectations of an interest rate hike later this year, gold managed to pick up a weekly gain, as investor demand for safe havens returned, after geopolitical tensions resurfaced.
On Monday, Brexit negotiations between the EU and UK got underway; UK Brexit secretary David Davis said talks got off to a “promising start”.
A few days later, however, European leaders criticized the UK's offer to secure the status of EU nationals living in the UK after Brexit.
Elsewhere, U.S. officials said North Korea carried out another test of a rocket engine that could be part of its program to develop an intercontinental ballistic missile.
Oil fell into bear market territory
The ‘crude conundrum’ continued as oil prices fell for a fifth-straight week, after sentiment on oil soured despite Opec and its allies’ high compliance with the global deal to curb production.
A monitoring committee made up of OPEC members and producers outside the group on Thursday said compliance to the deal reached 106% in May, the highest since the deal was first clinched late last year.
Oil prices are currently in bear-market territory, down more than 20% since the start of the year.