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Mixed session for global equities, oil gains on stockpiles data

16:58 26 June 2019

Summary:
- Trump attack social media companies and Powell in an interview
- Oil surges on biggest stockpile drop since September 2016
- Mnuchin said that US-China trade deal is 90% complete
- NZD extends gains as RBNZ stays on hold
- European stocks finish Wednesday’s session little changed
- Bitcoin prints fresh 15-month high
- Gold, JPY and CHF drop as risk appetite grows

After cutting interest rates earlier this year the Reserve Bank of New Zealand chose to leave them unchanged at today’s meeting offering a statement suggesting that some rate cuts could be needed though. The RBNZ kept its main OCR at 1.5% as broadly expected, however, the statement and minutes offered some dovish stuff. Nevertheless, the New Zealand dollar is benefiting from the decision and is the strongest G10 currency today.

The US Department of Energy released its weekly stockpiles report at 3:30 pm BST. The 12.79 mb decline reported for the past week was the biggest one-week drop since Q3 2016. Both Brent and WTI surged in the aftermath of the release and reached fresh daily highs.

The US President, Donald Trump, took an opportunity during today’s telephone interview with Fox Business to once again attack Powell. Trump said that the chief of the US central bank should have never raised interest rates and that he only tries to show “how tough he is” by refusing to cut them. The US President said that Powell is not doing a good job and that he has the right to either demote or fire him. Nevertheless, he did not say that he would.

Since the start of 2019 Bitcoin has risen more than 200%. However, steep rally was not accompanied by a surge in Bitcoin-related Google search as it was the case back in 2017. It may hint that the ongoing upward move is fuelled by the institutional investors rather than retail traders.

Equity markets around the World saw mixed performance on Wednesday. Bears dominated the Asian trading hours with indices from China, Australia and Japan all moving lower. Major European indices finished the session little changed. However, French and Italian equities were clear laggards on the Old Continent. The first half of the US session is marked by gains with Nasdaq rising the most. 

This content has been created by X-Trade Brokers Dom Maklerski S.A. This service is provided by X-Trade Brokers Dom Maklerski S.A. (X-Trade Brokers Brokerage House joint-stock company), with its registered office in Warsaw, at Ogrodowa 58, 00-876 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. X-Trade Brokers Dom Maklerski S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.

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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 77% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

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