The US stock markets closed with gains on Monday, with the Dow Jones Industrial Average calculated at 42,305 points, a slight 0.1% increase compared to the previous trading day. The broader S&P 500 index was up around 0.4%, while the technology-heavy Nasdaq Composite gained 0.7%.
Jochen Stanzl, chief market analyst at CMC Markets, attributed the market’s cautious optimism to the unpredictability of US President Trump, who, he said, could at any time escalate the trade conflict with China. Stanzl also pointed out that a personal meeting between the two leaders, if it were to happen, would likely only provide a temporary calming effect and that the Hang Seng index has lost a third of its gains since April.
The US Federal Reserve’s upcoming employment data, to be released on Friday, is expected to provide crucial guidance, but Stanzl noted that a single weak jobs report would not necessarily prompt the Fed to quickly reverse its monetary policy, as the inflation dynamics have recently weakened.
Meanwhile, the euro strengthened against the US dollar, with one euro equivalent to 1.1443 US dollars and one US dollar to 0.8739 euros. The gold price surged, with a fine ounce costing 3,380 US dollars, a 2.8% increase and a gram of gold priced at 94.96 euros.
The oil price also rose sharply, with a barrel of Brent crude oil costing 65.12 US dollars, a 3.7% increase from the previous day’s close, driven by the announced production increase by the Opec+ group, which includes eight key oil-exporting countries. The group has agreed to increase oil production by 411,000 barrels per day in July, as announced on Saturday.