Trump Close To Deciding New Fed Chair
The Dow Jones and S&P500 have had a rare down day with the Dow dropping 0.2% and the S&P500 down 0.4%. One of the biggest losing stocks was General Electric (GE) which fell 6.3% after releasing weaker than expected earnings on Friday. The market is also concerned about the company cutting its dividend. The Nasdaq 100 also fell, closing down 0.67% but still holding above the 6,000 level that it breached in early October.
The gold price spiked on heavy volume as president Trump commented that he is very close to making a decision on the new Fed chairperson. At the moment, Jerome Powell is the front runner and is considered to be one of the dovish candidates (hence the spike in gold price). The AUD price of gold has held up better than the USD price over the last two months as the AUDUSD has been gradually weakening. The AUD is currently trading at 0.781 but has been falling over the past week.
The bitcoin price fell early overnight as Saudi Prince Alwaleed bin Talal Al Saud commented that he thinks bitcoin will implode one day and is 'Enron in the making'. Later in the session, however, the crypto currency managed to regain most of the losses and is now back to around US$5,800. Several comments like this have been made by various well-known people recently, such as the CEO of JP Morgan, but bitcoin has proved remarkably resilient and is up around 50% for the month.
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This article was written by William O'Loughlin – Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via email@example.com or by phoning +612 8302 3633.