Market News & Analysis
U.S. GDP drives shares to new records, oil slumps
High-impact economic news:
18:10 BOE Gov Carney Speaks
A U.S. GDP surprise lifted the Nasdaq and S&P500 to new record closes on Friday. U.S. GDP came in at 3.2% smashing the 2.2% that the market had been expecting.
“The economic expansion will set new records for longevity in July and it looks like there is no stopping this economy,” said Chris Rupkey, chief financial economist at MUFG, in a note. “We had all but given up on the first quarter with the Federal government shutdown ending January 25, frigid winter weather conditions shutting down manufacturing production, and the fears of a world growth slowdown.”
“So far the fears are unfounded,” Rupkey said.
The GDP beat had a negative impact on the USD, but it parred most to the EUR by the close.
Oil continued to move lower losing a further 2.9% after reports President Trump says he told OPEC to take action to temper fuel costs. “The gasoline prices are coming down. I called up OPEC. I said, ‘You’ve got to bring them down. You’ve got to bring them down,’ and gasoline’s coming down,” Trump told reporters en route to a National Rifle Association event in Indianapolis.
Gold had a solid end to the week closing just below $9 higher for the day, trade was volatile as prices dropped $8 lower around the GDP but recovered by the end of the session.
Today, the ASX remains in the red close to midday and China is mainly trading higher. Japanese stocks will be closed for 10 days from April 27 to May 6 to celebrate the enthronement of the country’s Crown Prince Naruhito. Risk is stronger to the USD and Yen. The Fed, U.S. jobs data and earnings results from Apple and Alphabet are some of the key events coming out this week.
Good trading from EightCap
Sources – CNBC
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