It was a solid start to the week for N.A. equities Monday, as U.S. stocks climbed, boosted by key tech names and signs that the rate of new coronavirus infections in the U.S. could be slowing.
While optimism over a new coronavirus relief package has driven U.S. equities higher this week, the U.S. dollar hit the skids in July, reaching a two-year low and recording its worst month in more than a decade. Analysts have expressed concern that massive federal spending is eroding the greenback’s status as the world’s dominant reserve currency.
A weak U.S. dollar was in focus again on Tuesday as gold surged past the $2,000 mark, hitting $2,009 an ounce at one point in the day’s session. This year’s sharp drop in U.S. Treasury yields has made gold much more attractive as a safe- haven asset.
By Tuesday’s close, the Dow was up 164 points, while the TSX jumped 199, buoyed by data showing domestic manufacturing activity had expanded in July for the first time in five months.
It was another strong day for U.S. stocks Wednesday as hopes for a relief package continued to fuel investor optimism. By Wednesday’s close the Dow surged nearly 375 points, while the TSX was up 134.
Meanwhile U.S. gold futures on Wednesday hit a new intra-day record at $2,070 an ounce. So far in 2020, gold is up nearly 35%. It was also a good day for oil prices, which rose to their highest levels since early March on a significant drop in U.S. crude inventories and the sliding dollar.
The economic data from the U.S. this week has been somewhat mixed. While the service industry gained momentum in July, hiring actually declined, a worrying sign of an unsteady labour market. Thursday’s U.S. job numbers revealed 1.2 million new jobless claims—fewer than the 1.4 million expected but still at high levels historically.
Finally, N.A. equities struggled for direction on Thursday as investors parsed U.S. jobs data and ongoing deliberations in Washington over coronavirus relief. By Thursday’s close, all four major indexes were up modestly.
source https://richarddri.ca/u-s-markets-rise-on-hopes-for-coronavirus-relief-package-gold-hits-new-highs/
Dri Financial Group 