Daily Market Comment – Euro slides, Wall Street conquers new heights
- Marios Hadjikyriacos
- US stock markets set new records as Tesla goes into overdrive
- Euro falters ahead of ECB meeting, sterling comes back online
- Iran talks keep a lid on oil prices, gold cruises higher
In the commodity complex, gold continued its under-the-radar comeback yesterday, defying the firmer dollar. Instead, bullion drew strength from the unstoppable rally in inflation expectations and a pullback in real Treasury yields. The outlook for bullion is tricky here.On the bright side, inflation worries are running rampant and investors are looking for hedges. However, if inflation does stick around, the Fed will try to hammer it back down. Therefore, it's difficult to envision a scenario where gold prospers, outside of a sharp slowdown in growth that makes the Fed hesitant to pull the rate-hike trigger much. Meanwhile, some news that Iran and the European Union will continue top-level talks to revive the nuclear agreement took the wind out of oil prices yesterday. But for now, the burning question is whether OPEC will stabilize the market at next week’s meeting by opening the supply taps wider, something it has resisted so far. As for today, the spotlight will fall on consumer confidence numbers from America as well as earnings results from Google and Microsoft.
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