S&P 500 nears 5 month high despite US / China tensions
Wednesday saw U.S. and Chinese relations continue to deteriorate as political tensions grow between the world’s two largest economies.
The U.S. state department demanded that China close its consulate in Houston in a move which was driven by the need “to protect U.S. intellectual property”. China is now threatening a response.
After trading at 11070 yesterday, the NASDAQ was the U.S. index most affected, dropping to as low as 10,627 today.
Although trading within the turbulence, the S&P 500 is near its 5 month high of 3,280.
U.S. Home sales sets new record
With mortgages at historic lows in the U.S, today it was reported that home sales recorded their largest ever increase in the month of June.
The data showed that existing home sales increased by 20.7% to a rate of around 4.72 million units last month.
This percentage increase is the largest since 1968, when record keeping began. However the future outlook is still uncertain, due to the current number of unemployed in the U.S.
Oil stockpiles sinks FTSE 100 falls
Oil stockpiles grew by almost 5 million barrels last week, compared to an expected build of 2 million barrels.
Oil prices fell from yesterday’s 5 month high of $42.34, to a low today of $40.97.
The decline in price hit oil heavyweights BP and Royal Dutch Shell, who are both listed on the FTSE 100.
The FTSE was down by 1% hitting a 2 week low in the process.
Quote of the day: .“How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case.”Robert G. Allen
XAUUSD: After hitting a high of $1,853 yesterday, Gold has continued the rally today, climbing to as high as $1,870.
UK100 (futures): The bear of the day goes to the FTSE 100 futures which today hit a 2 week low, as the decrease in oil prices impacted 2 of the biggest companies included in the index.