A new Monday morning after a long Easter weekend and closed market on Friday starts with a fresh look over markets by bringing you everything you need to follow up for making well-thought investment decisions during the next 5 days.
U.S. Dollar vs Precious metals
The US dollar is lower on Monday, the index is down by 0.4%. However, gold hit a five-month high on Monday as the dollar weakened with investors taking refuge in safe-haven assets in the wake of rising geopolitical tensions over North Korea. The precious metals started week up, the yellow metal has gained 5% over the past four weeks, silver prices started in with a small change in the morning session.
Geopolitics have taken a turn last week, however, as what some consider fresh provocations by North Korea have increased already high tension levels between the U.S. and North Korea. The situation has increased to the degree that Vice-President Mike Pence has been dispatched to the region and there are discussions taking place about a potential U.S. offensive.
Gold is highly sensitive to the changes in the U.S. geopolitical situation. Investors suggest that gold will likely retain a measure of strength heading into the French elections this week, while ongoing tensions in North Korea should also keep the markets rather nervous.
Stock Market Today
U.S. stocks on Monday opened sharply higher S&P 500 2341.77 (+0.55%) and NASDAQ Index 5838.00 (+0.57%), Dow Jones Industrial Average 20,575.62 (+0.60%). U.S. stocks rebounded sharply on Monday after a long weekend and as markets corrected higher following last week’s slump. The S&P 500 Index and Dow Jones Industrial Average are up 0.4% a piece.
The most significant event is the French Presidential election on Sunday, April 23, and for much of the week, the most recent polls will dictate how the trades.
Investors are concentrated on high-profile earnings reports this week, including Johnson & Johnson and Bank of America Corp. U.S. housing and PMI data will dominate the data-driven headlines this week. Housing is said to ‘lead the economy’ so economists watch it closely – a strong rise or fall will be weathercock for the trajectory of the overall economy.
On Friday, the National Association of Realtors (NAR) will report on existing home sales.
Also, the week ahead will feature a visit to Washington from the International Monetary Fund and the World Bank, as well as data on U.S. housing starts and existing home sales, China’s first-quarter growth rate and U.K. retail sales
Geopolitical issues will remain in investors’ view this week, and could depress sentiment if tensions escalate. Over the weekend, North Korea put on a massive military parade, followed by a failed missile launch. In an unannounced visit to the Korean Peninsula’s demilitarized zone.