Wall Street extends recovery led by decisive gains in energy shares

Rising crude oil prices lift energy shares on Tuesday.
CBOE Volatility Index drops 3% to reflect upbeat market sentiment.
All 11 major sectors of the S&P 500 are in positive territory in early trade.

Eren Sengezer FXStreet

After adding more than 1% on Monday, major equity indexes on Tuesday started the day modestly higher as the lack of major headlines surrounding the US-China trade conflict allows investors to capitalize on the upbeat market sentiment with the CBOE Volatility Index, Wall Street's fear gauge, falling 3% on the day.

As of writing, the Dow Jones Industrial Average was up 0.58% on the day while the S&P 500 and the Nasdaq Composite were rising 0.62% and 0.78%, respectively.

Supported by rising crude oil prices, the S&P 500 Energy Index is up nearly 1% on the day to lead the gains alongside the Materials Index, which is also adding around 1%. Meanwhile, all 11 major sectors of the S&P 500 are trading in the positive territory in the early trade to confirm the risk-on mood.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.