Trump threatens to refuse and raise gold
Trump threatens to refuse the stimulus package and raise gold…and an increase in oil stocks increases pressures
Trump threatens to refuse and raise gold: It seems that the markets are still affected
by the consequences of the new strain of Corona virus, the US stimulus package and the issue of Britain’s exit from the European Union.
Trump threatened to not approve the US $ 900 billion stimulus package,
which means delaying the approval on the stimulus package of the relief of the emerging Corona virus, Covid-19,
until the arrival of the winning president in the US elections, Joe Biden,
and this means more time and more pressure on all markets with the continuing general state of uncertainty that the world is witnessing now.
What added to the decline in sentiments was that the most contagious strain for
more than 70% compared to the current virus, which makes traders move away from
dangerous assets and head to all kinds of safe havens.
As for Britain, days pass without an agreement with the European Union,
and there is no more time left before the deadline at the end of this year.
The increase in US stocks increases the pressures on oil
Oil prices maintained their decline today, Wednesday, after US stocks showed a significant increase,
in addition to the measures resulting from the emergence of a new strain of Corona virus in the United Kingdom.
Brent crude futures fell for February by 1.54% and the value of 0.77 dollars,
to trade a barrel at 49.31 dollars, after it was trading at 50.08 dollars during the session of Tuesday.
West Texas crude futures fell for the month of February by 1.55%,
at a value of $ 0.73 a barrel, as a barrel traded at 46.29, falling from the level of $ 47.02 a barrel by which it was trading on Tuesday.
This came after the American Petroleum Institute announced its report on US oil stocks,
which showed an unexpected increase of 2.7 million barrels, while it had been expected to decline by 3.135 million barrels.
This weekly increase in US oil stocks affected oil trading,
which has been suffering since the beginning of trading this week,
as it lost nearly $3 dollars, amid the emergence of a new strain of Corona virus in the United Kingdom,
and the tightening of movement procedures in the United Kingdom in addition to the ban on air traffic to and from it from several European countries, and other countries around the world, for fear of spreading the new virus on a global scale.
Trump supports gold with his comments on rejecting the stimulus package
Unlike oil, daily gold prices rose, benefiting from the significant dollar’s decline,
as it appears that the stimulus package will once again enter the negotiation field.
Today, gold recorded $ 1865 an ounce, up slightly by 0.3%, as the US dollar index
which measures the performance of the green currency against a basket of major currencies,
fell by 0.1%, making the yellow metal attractive to buyers.
This increase is considered the first positive move since last Thursday, according to Reuter’s news agency.
The US President, Donald Trump, threatened to use the right to reject or veto the stimulus package
that was approved by the US Congress the day before yesterday,
in order to mitigate the consequences of the epidemic.
This introduces us into a state of uncertainty, which makes gold supported as a safe haven,
especially with traders heading this time towards gold with the decline of the US dollar.
However, it may not last more like this with gold, as the green currency may regain its strength,
especially with the emergence of the new strain of the virus in the United Kingdom and fears related to Britain’s exit from the European Union without an agreement with the faltering negotiations, which may give the dollar a new push to rise.
With the dwindling of sentiment at the moment, traders are away of taking risks and prefer a safe haven.
Collective increase in Asian indices…and divergence in American markets…and European indices are in the red zone
With the start of the European session today, expectations indicate trading in the red zone of the euro region indices,
as according to the preliminary indicators published by Reuters,
the French CAC 40, the German DAX 30, and the British FTSE are expected to lose between 0.2 and 0.3% upon opening.
European markets were affected by the panic in the continent due to the new strain of the virus,
as operations of closures increased and sentiments plummeted, amid increasing fears of the new virus spreading further.
In addition, according to the latest updates of the exit of Britain from the European Union,
so far the major contentious issues between the two parties are the acceptance of UK fishing conditions in the quota of 650 million Euros.
The deadline for reaching an agreement extends to the end of this year
The US Standard & Poor’s 500 Index also declined by 0.2%, losing 7.66 points,
recording 368.26 points, and the Dow Jones losing 0.67%, recording 30.015.51 points after losing 200.9 points.
While the Nasdaq Composite Index rose 0.51%, registering12807.92, after adding 65.4 points.
The Kospi Index in seoul registered a rise of 0.8%, up to 2.754.35, while the Australian S & O-ASK lnfex rose 0.6%, recording 6.638.60 points.
The Indian Sensex Index rose in early trading by 0.5%, recording 46.228.23 points.
The statements of the World Bank supported the Asian markets today, as it said that China is expected to achieve a growth rate of about 2% this year, and this growth will increase during the next year.