Modest progress on trade talks
On Wednesday the US released a statement showing a rich list of notable points that need to be addressed and resolved. On the other hand, they also mentioned that their counterpart China had promised to buy “a large quantity of produced goods, agricultural, and more from the US.”
The fact that the talks were one day longer than they had been previously published, give experts an indication that the negotiations will possibly present more positive progress.
Trade tensions among the 2 economic giants intensified in 2018 and set the global stock markets on edge of collapse. The U.S. taxed $250 billion value of Chinese products, while China got back with its own.
Oil dropped due to US-China trade talks
On Thursday Oil dropped more than 0.9% due to a wary response regarding trade talks among the United States and China. The two countries are the world’s two biggest oil buyers. They are still negotiating a deal to end their trade dispute. International Brent crude futures fell about 0.9% at $60.87 per barrel while the U.S. West Texas Intermediate (WTI) crude oil futures went down to $51.80 per barrel.
On the expectations that the US and China may shortly end their trade conflict both oil benchmarks increased by about 4.9% on the previous trading day.
The dollar index seen lower
The dollar index was slightly under at 95.15. The weak fall happened following a weak Wednesday that created a 0.7 percent drop for the popular index. The index has declined 4 times out of 5 trading sessions while investors wagered that U.S. interest rates will remain steady in this year. The US Dollar advanced more than 4% last year while the Fed increased rates 4 times. The increases supported by a robust domestic economy and rising wages.
Gold is holding strong
On Thursday Gold increased while increasing hopes that the FED will suspend its rate hikes in 2019. Continued conflict between U.S. President Donald Trump and Democrats regarding the funding for the perimeter wall pressed the popular dollar giving a positive momentum to gold. The U.S. gold futures gained more than 0.3% to $1,297.0 per ounce while the Spot gold won 0.2% at $1,295.83 per ounce. The dollar index, which measures the greenback versus important currencies, hit its weakest level in almost 3 months.