Powell delivers mid-year report to House

Lloyd Doyle
July 21, 2018

Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.15% to 794.01 tonnes on Monday.

USA crude rose 0.75 percent to $68.59 per barrel, and Brent was last at $72.91, up 1.04 percent.

"Crude has been rising steadily so some kind of adjustment was due". He said solid job gains and strong economic growth has enabled the Fed to dial back the "extra boost" it implemented during the financial crisis and recession.

In Delhi, gold rates of 99.9% and 99.5% purity edged up by Rs 25 each to Rs 30,825 and Rs 30,675 per 10 grams, respectively.

"Economic reports. are suggesting that activity in the second quarter might have been better than expected", Jankovskis said. Raise rates too fast, and he could weaken the economy.

The metal is down more than 5 percent for the year.

Federal Reserve chairman Jerome Powell said protectionism can hurt economic growth and potentially undermine wages, just as the USA ratchets up trade tensions with commercial rivals as well as longstanding allies.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.1 percent at 95.022 after hitting a three-week high of 95.407 on Wednesday.

Powell offered an upbeat view of the us economy in an appearance before the Senate Banking Committee, with markets expecting two more interest rate increases this year amid a continued economic expansion. The kiwi traded at 91.80 Australian cents from 91.73 cents yesterday.

"He will undoubtedly acknowledge some downside risks associated with the administration's trade warmongering, but he will likely try to avoid sounding critical of the administration".

The pan-European FTSEurofirst 300 index rose 0.26 percent, helped by Powell's testimony, amid a batch of mixed company updates.

The Kiwi Dollar moved from $0.67684 to $0.67765, recovering from an initial dip to $0.67556, with the year-on-year figure supporting the Kiwi in the early hours.

Though concerns remain the USA economy may be nearing a peak as evident from a flattening yield curve, the widening rate differentials between the United States and other major markets have lifted the dollar.

UnitedHealth Group Inc weighed the most heavily on the Dow, its shares down 2.6 percent as the largest US health insurer reported higher-than-expected quarterly medical costs.

Brent crude was last up 0.5 percent at $72.20 and US crude futures stood little changed at $68.07 a barrel after sliding more than 4 percent on Monday. It brushed a 16-day low on Wednesday of $1.1602.

Other reports by Iphone Fresh

Discuss This Article