Firm Dollar, Rising Oil Output, Shining Gold Prices and Surging Stock Market

As the first half of 2021 is already over, it can be seen that most economies have made remarkable progress. The economies of the United States of America, Europe, China and other countries of Asia-Pacific have completely stabilized. In Australia, the unemployment rate has fallen considerably according to the nation’s Bureau of Statistics, which is a clear indication of economic stability. In the second quarter, the gross domestic product of China rose by an impressive figure of 7.9%. As per the leading economists, such factors influence the share trading. The stocks of Mainland China closed at a higher figure. Also, a massive surge was seen in China's industrial output. A growth of 1.02% was seen in the Shanghai composite and was touching 3,564.59. The Hang Seng index of Hong Kong also rose by about 0.85%.

South Korea’s Kospi closed at 3,286.22 after advancing by about 0.66%. The S&P 500 advanced by 0.12 on Wall Street to 4,374.30. The Dow Jones Industrial Average managed to gain 44.44 points. It was standing at 34,933.23. In most parts of the world, the condition is stable, markets are making recoveries, but investors still have their own concerns. Recently, the US dollar touched its highest level in the last few months. The performance of the dollar was impressive in comparison to currencies of Asia's emerging market currencies. The U.S. dollar index was at 92.729. The safe haven, the Japanese Yen, is also trading at strong values. The economic analysts, policymakers are refuelling investor's confidence so as to maintain the plans of economic recovery.

OPEC agrees to boost oil supply

OPEC recently agreed to enhance oil supply from the month of August in order to balance prices that have reached their peak point in two and half years. Since the global economy is trying to recover from the shock of the pandemic, such steps are necessary. The OPEC members and its allies like Russia have agreed upon new production shares. OPEC has also agreed on the new production quotas for its members like UAE, Russia, Iraq, Kuwait and Saudi Arabia from May 2022. Such agreements also give comfort and hope to market participants as well as investors. Last year the output was affected as demands evaporated owing to the pandemic, but now most sectors are working in full swing. The demand for fuel has skyrocketed in the last few months.

It is a very common scene to see investors switching to gold, the safe-haven metal during any economic fluctuation. Gold is believed to be a safe investment, specifically during times of financial and political uncertainty. Recently, the gold prices have edged up. The spot gold was standing at $1,812.83 per ounce after making a gain of 0.1%. It is also being observed that factors such as negative real yields are also driving gold prices. A strong condition of the US dollar is also an influencing factor.

request a call back