Wall Street stalls near record highs
|Wall Street continues to trade in record highs but is losing momentum ahead of next week's Fed meeting, says Axel Rudolph, Senior Technical Analyst at investing and trading platform IG.
US producer prices unexpectedly decline
The UK economy stagnated in July as GDP flatlined, with a 0.9% drop in industrial output and broad weakness in manufacturing offset by modest gains in services and construction. Sterling briefly slipped against the dollar on the news, while the FTSE 100 defied the downbeat data, remaining close to record highs thanks to strength in insurance and mining stocks. The picture was similar in the US where Wall Street flirted with record highs without much conviction as US consumer sentiment weakened.
Crude Oil price rallies
WTI crude oil jumped over 1.5% to $63.5 a barrel after a major Ukrainian drone strike disrupted Russia’s Primorsk port operations, intensifying supply concerns despite rising global output projections and expectations of Fed rate cuts supporting demand. Gold and especially silver prices rallied as well, the former remaining close to this week's $3,674 all-time high and the latter reaching $42.46, a level last seen in September 2011.
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