Futures Trade Lower
Naeem Aslam | Jul 12, 2021 03:17AM ET
Futures in the United States are trading lower after a massive rally in stock markets on Friday pushed the Dow up nearly 448 points, recouping losses from the previous day. The bullish sentiment followed a halt in the growth of core government debt as Wall Street shrugged off concerns about global economic growth slowing and went shopping for stock bargains.
h2 Gold/h2Gold prices rose on Friday, posting their best performance in seven weeks, due to growing concerns about the Delta variant and a declining dollar index. The precious metal enticed investors to use it as a hedge against economic uncertainty and rising inflation at a time when the Covid variant is forcing Southeast Asian countries into new lockdowns.
Moving forward, the price of gold is very likely to rise if investors believe that the Fed is not concerned about inflation exceeding expectations and achieving full employment. Gold could be worth more than $1,850 by the end of 2021, up from $1,805 right now.
h2 Asian Stock Markets/h2The Nikkei 225 index in Japan jumped 2.29% in morning trade, and the Shanghai Composite index rose nearly 0.86%. As of 10:53 p.m. EST, the ASX 200 index rose 0.88%, and Seoul's KOSPI had increased 0.89%. Hong Kong's Hang Seng index hopped 0.49%.
Following concerns about a slowing in economic growth last week, the Chinese central bank announced a 0.5% reduction in bank reserve ratios. The reduction in the reserve ratio could boost financial institution profitability while also releasing much-needed capital into the Chinese economy.
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