Market Review

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Daily Review: 18.08.2016

August 18 - Dollar, Stocks sag as more Fed’s policy members slams door for near-term rate hike

US dollar and Wall Street stocks closed lower after more policy members of the Federal Reserve opposed the near-term rate hike, shown by the minutes of July meeting released on Wednesday.

The minutes showed that members of the rate-setting were generally upbeat about the US economic outlook and labor market. Fed’s policymakers reiterated that more economic data is needed before raising interest rates while others eye a need on tightening of policy soon.

The dollar pared its losses as it last stood at 94.63 against major currencies, dropping 1.1%. Versus yen, the greenback dived 0.4 percent to close at 99.87 while the euro traded at $1.1301, nearing its Tuesday seven-week high of $1.1323. The British pound recovered from its previous low of $1.2850 as it finished $1.3050.

Meanwhile, US stocks suffered the same fate as the dollar as investors sold their equities ahead of the release of the minutes of the July meeting.

The S&P 500 shed 5.18 points, or 0.24%, closing at 2 172.97. The Dow Jones Industrial Average lost 45.57 points, or 0.25% to settle at 18 506.45 while NASDAQ dropped 16.26 points, or 0.31% to finish at 5 210.86.

Gold, silver slips after release of Fed minutes

Gold and silver declined on Wednesday as precious metals ended on a weaker note after Federal Reserve release the minutes of July meeting.

The COMEX gold futures contract for December delivery dipped 0.4% to close at $1 351.35 while the COMEX silver contract for September delivery dropped 0.78%, to close at $19.72

Spot gold had fallen 0.6% immediately after the release, settling at $1337.22.

US gold was down 0.6%, closing at $1 348.80 per ounce.

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