Risk Appetitle Improved as Kim Offers Peace Talk; More Opposition Against Trump's Tariff Plan
North Korea’s offer to open denuclearization talk, together with easing concerns over US’ trade barriers, lifted risk appetite. On the FX market, US dollar fell across major currencies with the DXY index losing -0.51% for the day. New Zealand dollar and Australian dollar were the best performers, soaring +0.86% and +0.85% against the greenback. The relatively better performance of kiwi over Aussie was a report suggesting that the decline in dairy price was not as big as anticipated. Commodity prices strengthened. In the energy sector, the front-month WTI and Brent crude oil contracts climbed +0.05% and +0.38% respectively. The gains were limited by the huge inventory build last week. In the precious metals complex, the benchmark Comex gold and silver contracts rose +1.18% and +2.31% respectively. The Nymex platinum and palladium contract gained +0.88% and +0.08% respectively. Wall Street climbed only mildly higher, though, with the DJIA and S&P 500 indices adding +0.04% and +0.26%, respectively.
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