MarketDeal24.Com – Here are the five most important things that an investor is supposed to know if he or she wants to survive the market on Monday, 06 January, 2020.
Tensions seems to have flared up afresh after the killing of a top Iranian general by US military. Stoking the fears that the Middle Eastern may refuse to abide by the nuclear deal that it has struck with the international community. Which effectively means that Iran will no longer limit the amount of enriched uranium it holds.
Iran has already announced retribution for the death of Qassem Soleimani who was killed in a US air raid last week. US president Donald Trump, on the other hand, has warned about a major retaliation if Iran hits back.
Prices for the crude oil continue the upward march that it has started the week before. Last Friday, crude prices soared by 3% on fears that a disruption might be impending in the supply route.
The global benchmark index for the crude oil climbed above $70 a barrel to its highest level since last September, when an oil processing facility located in Saudi Arabia was attacked. US West Texas Intermediate Crude index was at $63.77 a barrel, up 72 cents or 1.1% after touching $64.72 earlier.
The traditional safe haven for investment called Gold has seen its value rise to seven year high, climbing to $1,582 per ounce, the highest since April 2013.
On the currency front, Japanese Yen soared to a three-month high of 107.77 versus the US dollar overnight and was last at 108.00. The Swiss Franc was very close to the four-month high of 1.0824 it reached against the Euro on Friday.
Capital markets located across the United States are supposed to start the day slightly lower on Monday, reflecting the concerns that investors throughout the world have about the recent developments on geo-political front.
By 5:35 AM Eastern Time (ET) Dow futures were down 171 points or 0.6% points, S&P 500 futures was down 0.6% while NASDAQ 100 futures was off 0.7%.
A survey report released on Monday revealed that the economic activities across the Eurozone remain stagnant in the just-concluded month of December. As per the report, an upturn in the service sector has partially offset the decline in the overall economic activity of this area.
IHS Markit’s final Eurozone composite PMI edged up to 50.9 in December from November’s 50.6.