Daily Dose, EU

Gold Rises and the Dollar Declines in Brutal Trade War – Europe Market Wrap

The Dollar fell on concerns that its standing as the world’s reserve currency is deteriorating as the US-China trade war escalates. Gold surged, and the Euro reached a three-year high.

In a week marked by the largest fluctuations in decades in the stock and bond markets, currency movements took front stage on Friday. The Dollar index fell 1% to its lowest level in six months. Treasuries remained stable. S&P 500 futures nudged higher as investors awaited bank earnings to kick off the earnings season.

In the most recent tit-for-tat move, China stated that it would hike tariffs on all US exports from 84% to 125%, warning that it will “resolutely counterattack and fight to the end” if the US continues to violate its rights and interests. The Ministry of Finance likewise described the Trump administration’s moves as a “joke” and stated that they are no longer worth matching.

In other markets, gold reached a record high of more than $3,200 per ounce. Bitcoin gained 4%. The Euro rose 1.4% to approximately $1.13.