Markets Weekly Recap
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- Global stocks pushed higher for the week, shaking off virus and inflation concerns
- The US dollar-dominated the currency board, while Bitcoin, gold remained pressured
The global stock markets this week ended the second quarter of 2021 with a spectacular performance on both sides of the Atlantic. Ample fiscal and monetary stimulus, coupled with an increasing rate of vaccinations pushed world shares to new records.
In the US, the S&P500 and the Nasdaq Composite climbed to fresh all-time highs this week, while the Dow Jones Industrial Average hovered right below its record. Investors once again felt confident to bet on risky stocks with lofty valuations, assuaged by comments from the Federal Reserve that inflation would be transitory and monetary support will be maintained.
US equities this week ended the first half of the year with gains and started the next half also in the green, pushed by expectations of economic growth and sustained recovery in the next six months.
Gold Slips to Weekly Low
European markets were struggling in the first half of the week as looming concerns over the Delta strain put pressure on major indexes. Still, bourses across Europe managed to shake off virus fears and pushed higher by the end of the week.
The US dollar was the dominant figure in the currency market over the week as traders piled in seeking a haven amid growing concerns around the spread of the Delta variant of the coronavirus in Europe, Australia, and Asia.
On the cryptocurrency front, Bitcoin and peers remained largely subdued despite buyers’ efforts to fuel another leg higher. Bitcoin kicked off the week in a solid move to the upside as the token gained over 14% by mid-week. The digital currency, however, slid afterward and ended the week relatively unchanged, gravitating between $33,000 and $35,000.
Gold traded moderately lower as the precious metal’s price was unable to sustain a clean break above the immediate resistance of $1,780. Gold’s price slipped to a weekly low of $1,751 on Tuesday but then pared some of the losses and floated near $1,780 per troy ounce.
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