Here is what you need to know on Wednesday, August 12:
Stocks rallied after US President Trump said he expects the US economy to grow at a record pace in the upcoming weeks, hinting he could cut taxes on capital gains and for middle-income families. Wall Street lost momentum ahead of the close, trimming intraday gains and closing in the red.
The dollar initially fell with mounting risk-appetite, but recovered it good shape in the US afternoon, recovering the ground lost against its high-yielding rivals and reaching fresh highs against most other major currencies.
Gold plunged, with spot down to $1,909.90 a troy ounce, shedding roughly $120.00 in the day. Crude oil prices followed equities’ behaviour, ending the day in the red amid dollar’s comeback. WTI settled around $41.60 a barrel.
UK employment data was mixed, as the ILO unemployment rate remained steady at 3.9% in the three months to June, better than the 4.2% expected. However, the Claimant Count Change for July disappointed by jumping to 94,400, far worse than the 10K projected.
US Treasury yields reached a one-month high amid optimism
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