Wednesday, May the 17th was the day when U.S. stocks felt the worst decline of 2017. The world’s top investors survived huge risks and have lost the amounts of money, due to reports that came out about President Trump, and the market movements which followed.
Observing the indexes, The Dow definitely had the worst story. Speaking of, it have lost 370 points, or 1.78%. While the NASDAQ ans S&P 500 also declined for more than 1,5%. The non so likable thing, is that the three most important U.S. indexes finished the week lower. In negative.
Gold futures 2% up
Meanwhile, investors have found their ”way out” of the bad Wednesday, relying on gold. And piling their money in safe assets.
Most noteworthy, the current political drama is happening in Washington. The President Trump’s bad branding which is forthcoming, put some doubts on his Politics, ideas and plans for the future steps.
Gold futures gained about 2% for the week. Which makes it the very best performance of this precious metal in 5 weeks.
Oil prices; real positive expectations
Speaking about the Oil prices, they were oscillating around 50$, gaining levels of 53.30 and a bit more, amid expectations that OPEC is going to extend the cuts. Crude futures followed the levels of 50$ at Friday’s close. The rising expectations for OPEC to prolong the supply cuts is leading prices up. And it will have its greatest impact after May the 25th.
Noureddine Boutarfa Algerian Energy Minister, said that all the ally OPEC and most non-OPEC countries support the output cuts. So they would likely impact the market, and push the OIl prices up.
Sterling hits highs
Thursday was the day when pound of sterling survived a mini crash against the dollar, falling to the level of $1.2888. This move was not so expected, because in fact it is not relied to any economic event. Or any important market data. But the dip in pound was very brief. As GBP/USD later recovered.
And reached the level above 1.30$. Which was definitely the highest since September. This impacted the markets, and the investors pockets, and later it showed that the UK retail sales went up more than expected in April.
The dollar drops
The U.S. dollar index fell by more than 0.70% on Friday.
The dollar shakes are the most important ones. Political drama happening in U.S. had affected the market during the week. It actually erased almost all the earnings brought by President Trump’s election. The economy is throwing a doubt on President Trumps ability to reform the policies. He promised to deliver the reforms on pro-growth economic agenda. Which is including deregulation in financial markets and the tax reform also.