Stocks climb as weakening geopolitical tension calms investors


    The weakening geopolitical tension was felt most strongly in the stock markets. US stocks started the week with steady rallies after recording one of their worst performances for the past week. Investors have abandoned bonds and gold at the expense of stock purchases, analysts say, and this explains the rally that was seen on Monday.

    The information sector led the S & P500 one percent higher, bringing the benchmark record to a record high at 2 465.84 points. This is the biggest increase since April. The Dow Jones blue chip index rose 135.39 points to 21,993.71. The most profitable in the day were Goldman Sachs, Apple and Boeing. Technological Nasdaq lagged in the past week.

    Tesla rose by 1.7 percent after Morgan Stanley raised the price target for the electric car manufacturer. Netflix stock on the other hand, fell by 0.2 percent. According to the financial news provider Barron’s, the shares of the online video store could lose more than half by the end of the decade, as Walt Disney, among other things, plans its own streaming service.

    Alibaba shares were up 1.9 percent after news that Daniel Loeb had purchased 4.5 million shares in the Chinese online trader.

    Facebook improved by 1.6 percent. The company is bringing its sales platform to Europe, increasing rivalry with the Internet retailer Ebay.

    European exchanges have responded in a similar way to the global situation, although data showed a decline in industrial production in the EU. Pan-European Stoxx 600 finished 1.08% higher, with all sectors in the green area. The European Bank Index also recorded excellent performance, rising 1.4%.

    Germany’s GDP, Europe’s No. 1 economy, rose by 0.6 percent compared with the previous quarter, as the Federal Statistical Office reported in Wiesbaden on Tuesday in an initial estimate. At the beginning of the year, according to the latest calculations, the economy had grown by 0.7 percent and thus somewhat higher than initially determined.

    The economy is doing well this year, and this recovery is evident from assured but moderate growth. Consumer prices on a monthly and annual basis will provide guidance on Brexit’s effect on UK inflation. The main event of the day and one of the main week’s are US retail sales data. Although we see a slowdown in price growth, retail sales data has the potential to return the belief in a recent interest rate increase.

    Gold retreated from the two-month highs mainly due to the pressure from the rising dollar. Spot price dropped 0.55% to $ 1 281.75 per ounce after the previous session reached the highest level since early July. Futures with delivery in December ended at $ 1,290.40. Despite the decline, it is expected that weak US consumer price data will have a positive impact on the price. The data create expectations for a slowdown in interest rate increases, which is a positive news for the noble metal that does not bring interest.

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    Javier Davis produces news on stocks, currencies, bonds, commodities, and real estate. His in-depth research covers most of the major financial markets in America, Europe, and Asia. His research is based on the interconnected relationships among economic and technical factors that drive valuations in the markets, with an emphasis on how to formulate investment strategies. From interest rates to inflation to economic growth and much more, the fundamental concepts presented on this website provide an essential foundation of knowledge for investors to profit in stocks, bonds, commodities, currencies, and real estate markets.