U.S. indices consolidate as consumer confidence eases
U.S. indices remained static on Tuesday as markets reacted to the news that consumer confidence levels eased in May.
Data released by the Conference Board showed that its U.S. Consumer Confidence Index for May rose less than expected at 117.2.
After initially rising to 121.0 the month prior, many had expected this month’s figure to come in at 119.2. However Tuesday’s report halted progress in the index’s markets.
Wall street’s main Indices like the S&P 500 were edging closer to all-time highs, after consecutive sessions in the green. They now trade slightly lower on the news.
DAX 30 records new high despite GDP data
Germany’s Dax 30 rose to an all-time high in today’s trading session, despite data showing that the country’s economy had shrunk in Q1.
Figures released from the European Union’s largest economy showed that GDP contracted more than expected in the first quarter. Falling by 1.8%.
It was anticipated that GDP would decline by 1.7% quarter on quarter and by 3% on the year. However both declined by 0.1% more than expected.
One of the key contributors to the decline was household spending. Which fell by 5.4% in the quarter, as more Germans opted to save.
The country’s savings rate reportedly rose to a record 23.2%, as lockdowns and travel bans prevented citizens from socialising.
Despite this, the DAX was up 0.18% despite the news.
Gold climbs to 4-month high
Gold climbed to its highest level since January 8th on Tuesday, as prices of precious metals rose across the board.
Typically seen as a safe haven asset, XAUUSD rallied to an intraday high of $1,898 as U.S. consumer confidence eased this month.
Recent weeks have seen the gold price rise. As economic data from the U.S. showed rising inflation, as well as slowing jobs growth.
Last month’s Non-farm payrolls was the catalyst of this, coming in close to 700,000 less than expected, whilst retail sales also slowed.
Many believe that the impact of President Biden’s stimulus $1.2 trillion rescue package has somewhat faded. Leading to many calling for interventions from the Fed.
As of writing, XAUUSD was held below its intraday high.
Quote of the day – “The goal of a successful trader is to make the best trades. Money is secondary.”– Alexander Elder