US indices enjoyed a strong end to the week last Friday. The Dow in particular gained over 400 points, rising to a record high close as a number of stocks across the board outperformed. For once, tech stocks were not the driving force behind the push; Alphabet Inc (GOOGL) and Nvidia (NVDA) both ended the week on the back foot, losing 1.7% and 3.2% respectively. The Dow, S&P 500 and Nasdaq Comp all ended the week in the black, although the latter two failed to break new ground.
Whatever accolades can be attributed to US indices, they pale in comparison to what we are currently witnessing in the mighty US Dollar. The DXY ended the week with a bang on Friday, closing around 107.5 but not before testing the waters around 108. The index now sits at a two-year high and competing currencies are really feeling the pressure. The Euro plummeted all the way down to $1.033 on Friday before staggering back above $1.04 for the day. Poor manufacturing data from Germany and France did their part to weigh on the common currency but a more immediate concern is the battle of interest rates. The ECB has proven all too willing to lower rates on the Euro in a bid to combat lacklustre growth whereas the Fed on the other hand has been surprisingly reticent. Next rate decisions are set for the 12th and 18th of December respectively. Another major factor moving forward is the incoming Trump presidency, which is expected to implement more protectionist policies and a firmer stance on international trade, further bolstering the Dollar, at least in the short term.
Gold enjoyed a decent rally on Friday, gaining 1.7% to close back above $2,700 an ounce. The safe-haven trade once again working its magic. For now however, the spotlight is firmly on Bitcoin, which remains tantalisingly close to six figures.
Advertencia de riesgos : Productos derivados del trading y productos potenciados poseen un nivel más alto de riesgo.
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