Volatility in most markets remains high as increasing tension is now coming from Saudi Arabia after the potential murder of a US journalist in the Saudi embassy in Turkey. An inquiry started by the Saudi king will try and investigate what actually happened amid threats of sanctions and a reduction in oil supply which has made the energy markets nervous.
Stock indices were sharply lower last week and Asian markets continued the falls , while European markets are slightly positive after Brexit talks over the weekend did not reach any decisions. US futures have been lower all day , but the release of weaker retail sales and the bankruptcy of Sears , has maybe increased the chances of the Fed delaying a rate rise in the future. Analysts are now talking about a slowdown driven by the rising rate environment and the Fed.
The US dollar has remained weak since last Wednesday against the AUD , EUR , GBp and NZD with the JPY a standout as a safe haven. Talk of weaker economic numbers and the chance of less rises has the potential to hurt the dollar even more as the market is positioned very long USD.
Advance retail sales numbers out earlier were a lot weaker than expected as auto sales and restaurant sales dropped more than expected.
Latest prices are as follows:
Dow Jones 25287 down 41 / S&P500 2761 down 4 / Nasdaq100 at 7133 down 24.
EUR at 1.1590 up 30 / GBP at 1.3148 down 5 / JPY 111.90 stronger by 33 / DXY at 94.66 down 26.
WTI Crude oil at 71.76 up 40 / Gold at 1224.80 up 7.00
Daily Chart - Spot Gold in USD. - Pushing higher with weak USD with 1250 next target.