The Nasdaq hit a fresh record Monday as leading bourses mostly rose, while gold also scored a new all-time high as the shock death of Iranian President Ebrahim Raisi helped bolster the haven investment.
Copper also struck an all-time peak, and silver jumped to the highest level in more than 11 years. Gold had already hit a series of record highs this year.
Record Highs for Precious Metals
Gold struck a record $2,450.07 an ounce Monday, while copper’s all-time high stood at $11,104 per tonne. The rise in metal prices can be attributed to the geopolitical situation, as well as expectations of a potential rate cut by the US Federal Reserve.
Market Response to Geopolitical Events
The shock death of Iranian President Ebrahim Raisi in a helicopter crash created a geopolitical premium, causing gold and copper prices to surge to record highs. Events like these can significantly impact financial markets by creating uncertainty and increasing demand for safe-haven assets.
Foreign countries had been closely following the search for Raisi at a time of high regional tensions due to the Gaza war between Israel and Hamas, which began on October 7.
Impact of Fed’s Potential Rate Cut
Copper and gold are priced in US dollars, which have been under pressure recently due to expectations of a rate cut by the Federal Reserve. This anticipation has further fueled the rise in gold prices, making precious metals an attractive investment option.
Market Sentiment and China’s Support
Furthermore, the plan by China to support its struggling property sector boosted market sentiment. Metal prices are closely tied to global economic growth, making them sensitive to such supportive measures by major economies like China.
Oil prices initially jumped on the news of the Iranian president’s death but later dipped as investors awaited further developments.
Upcoming Market Events
Investors are eagerly anticipating the release of the Federal Reserve’s May policy decision minutes for insights into future monetary policy. Additionally, upcoming company earnings reports, such as NVIDIA’s on Wednesday, will be closely watched as they can influence stock prices and market sentiment.
Market Performance
While large tech companies propelled the Nasdaq to a new record high, the Dow was weighed down by a decline in JPMorgan Chase stock. This highlights the market’s reaction to both company-specific news and broader geopolitical events.
– Key figures around 2050 GMT –
New York – Dow: DOWN 0.5 percent at 39,806.77 (close)
New York – S&P 500: UP 0.1 percent at 5,308.13 (close)
New York – Nasdaq Composite: UP 0.7 percent at 16,794.87 (close)
London – FTSE 100: UP 0.1 percent at 8,424.20 (close)
Paris – CAC 40: UP 0.4 percent at 8,195.97 (close)
Frankfurt – DAX: UP 0.4 percent at 18,768.96 (close)
EURO STOXX 50: UP less than 0.1 percent at 5,074.34 (close)
Tokyo – Nikkei 225: UP 0.7 percent at 39,069.68 (close)
Hong Kong – Hang Seng Index: UP 0.4 percent at 19,636.22 (close)
Shanghai – Composite: UP 0.5 percent at 3,171.15 (close)
Dollar/yen: UP at 156.29 yen from 155.65 yen on Friday
Euro/dollar: DOWN at $1.0861 from $1.0869
Pound/dollar: UP at $1.2707 from $1.2701
Euro/pound: DOWN at 85.46 from 85.57 pence
West Texas Intermediate: DOWN 0.3 percent at $79.80 per barrel
Brent North Sea Crude: DOWN 0.3 percent at $83.71 per barrel
burs-jmb/bgs
The Nasdaq hit a fresh record Monday as leading bourses mostly rose, while gold also scored a new all-time high as the shock death of Iranian President Ebrahim Raisi helped bolster the haven investment.
Copper also struck an all-time peak, and silver jumped to the highest level in more than 11 years. Gold had already hit a series of record highs this year.
Record Highs for Precious Metals
Gold struck a record $2,450.07 an ounce Monday, while copper’s all-time high stood at $11,104 per tonne. The rise in metal prices can be attributed to the geopolitical situation, as well as expectations of a potential rate cut by the US Federal Reserve.
Market Response to Geopolitical Events
The shock death of Iranian President Ebrahim Raisi in a helicopter crash created a geopolitical premium, causing gold and copper prices to surge to record highs. Events like these can significantly impact financial markets by creating uncertainty and increasing demand for safe-haven assets.
Foreign countries had been closely following the search for Raisi at a time of high regional tensions due to the Gaza war between Israel and Hamas, which began on October 7.
Impact of Fed’s Potential Rate Cut
Copper and gold are priced in US dollars, which have been under pressure recently due to expectations of a rate cut by the Federal Reserve. This anticipation has further fueled the rise in gold prices, making precious metals an attractive investment option.
Market Sentiment and China’s Support
Furthermore, the plan by China to support its struggling property sector boosted market sentiment. Metal prices are closely tied to global economic growth, making them sensitive to such supportive measures by major economies like China.
Oil prices initially jumped on the news of the Iranian president’s death but later dipped as investors awaited further developments.
Upcoming Market Events
Investors are eagerly anticipating the release of the Federal Reserve’s May policy decision minutes for insights into future monetary policy. Additionally, upcoming company earnings reports, such as NVIDIA’s on Wednesday, will be closely watched as they can influence stock prices and market sentiment.
Market Performance
While large tech companies propelled the Nasdaq to a new record high, the Dow was weighed down by a decline in JPMorgan Chase stock. This highlights the market’s reaction to both company-specific news and broader geopolitical events.
– Key figures around 2050 GMT –
New York – Dow: DOWN 0.5 percent at 39,806.77 (close)
New York – S&P 500: UP 0.1 percent at 5,308.13 (close)
New York – Nasdaq Composite: UP 0.7 percent at 16,794.87 (close)
London – FTSE 100: UP 0.1 percent at 8,424.20 (close)
Paris – CAC 40: UP 0.4 percent at 8,195.97 (close)
Frankfurt – DAX: UP 0.4 percent at 18,768.96 (close)
EURO STOXX 50: UP less than 0.1 percent at 5,074.34 (close)
Tokyo – Nikkei 225: UP 0.7 percent at 39,069.68 (close)
Hong Kong – Hang Seng Index: UP 0.4 percent at 19,636.22 (close)
Shanghai – Composite: UP 0.5 percent at 3,171.15 (close)
Dollar/yen: UP at 156.29 yen from 155.65 yen on Friday
Euro/dollar: DOWN at $1.0861 from $1.0869
Pound/dollar: UP at $1.2707 from $1.2701
Euro/pound: DOWN at 85.46 from 85.57 pence
West Texas Intermediate: DOWN 0.3 percent at $79.80 per barrel
Brent North Sea Crude: DOWN 0.3 percent at $83.71 per barrel
burs-jmb/bgs
