EUR/USD is trading under1.1850, off the previous levels as US consumer sentiment beat estimates with 78.9 points. The Fed refrained from adding more stimulus, supporting the dollar earlier in the week. Investors are eyeing fiscal stimulus talks.
Gold regained some positive traction on the last trading day of the week and recovered a part of the previous day's losses to over one-week lows. The commodity held on to its intraday gains and traded above the $1950 level through the mid-European session.
Bitcoin risks dominance after the strong rise of Ethereum. Technical indicators show some significant discrepancies keeping the stress on the board. Sentiment levels are improving and bordering on optimism.
WTI has been through a rollercoaster this week. The liquid gold has been in a downtrend leading into the OPEC+ JMMC meeting and then reversed the whole move. At the meeting the group agreed to extend the compensation period for overproduction till the end of December.
The Dow Jones Industrial Average (DJIA), also called “Dow Jones” or “the Dow” is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange (NYSE), approximately two-thirds of which are represented by companies producing industrial and consumer goods. “Price-weighted” means that each company is assigned a weighting based on its stock price. It was created by The Wall Street Journal editor Charles Dow in 1896.
If the DJIA rises by 10 points comparing to yesterday, it means that the cost of purchasing the 30 stocks in the index today is $10 higher than purchasing those same 30 stocks yesterday, taking into account stock splits and dividends.
Over time, the DJIA can be used as a benchmark for the economy
HISTORIC HIGHS AND LOWS FOR DOW JONES
All-time records: Max: 29368 on 13/02/2020 - Min: 35.32 on 27/07/1970
Last 5 years: Max: 29368 on 13/02/2020 - Min: 17282 on 21/08/2015
* Data as of February 2020
ASSETS THAT INFLUENCE THE DOW JONES THE MOST
Commodities: USD, EUR and JPY.
Bonds: T-Bond (Treasury bond is a marketable, fixed-interest U.S. government debt security).
Indices: S&P500 (American stock market index based on the market capitalizations of 500 large companies having common stock listed on the NYSE), NASDAQ (benchmark index for U.S. technology stocks), WTI (West Texas Intermediate is a grade of crude oil used as a benchmark in oil pricing, the underlying commodity of NYMEX's oil futures contracts) and RUSSELL 2000 (the most common benchmark for mutual funds that identify themselves as "small-cap").
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE THE DOW
Since the Dow Jones is a benchmark of American stocks, what will impact its value is related to all those decisions and figures that affect the results of big companies in the United States of America. That is, among others:
Economic indicators of inflation (CPI, PPI,...), consumer confidence (as Michigan Consumer Confidence Index), growth (GDP), employment (Non Farm Payrolls) and salaries (Average Hourly Wages). An economic indicator is a statistic about an economic activity. Economic indicators allow analysis of economic performance and predictions of future performance.
interest rates decided by the Federal Reserve System (Fed) which is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Jerome Powell is the 16th Chair of the Fed.
Fiscal policy, trade deals, business laws decided by the US administration (President Trump, the 45th and current president of the United States, assuming office on January 20, 2017), but also by the US Treasury Department (Steve Mnuchin, serving as the United States Secretary of the Treasury as part of the Cabinet of Donald Trump) and the US Department of Commerce which is an executive department of the federal government concerned with promoting economic growth (Wilbur Ross, United States Secretary of Commerce).
Energy prices (electricity, oil,...), because they have impact on production costs for those companies. A fixed-rate tariff sets the cost of energy for a certain amount of time, while prices on a variable tariff can go up or down according to the market. The price of energy depends on a range of different supply and demand conditions, including the geopolitical situation, the national energy mix, import diversification, network costs, environmental protection costs, etc...