Dubai: The Dow Jones Industrial Average remained in the striking distance of its record high, and supporting factors might help the index to breach that mark.
The DJIA gained as much as 1.12 per cent to reach a high of 26,436.68, about 500 points away from its peak of 26,951.81. The index closed 1.03 per cent higher at 26,412.30. The S&P 500 index witnessed a high of 2,910.54, just 40 points off its peak of 2,940.91.
The positive sentiment would get boosted by finance ministers of G20 promising to get the act together to revive growth, that has been slowing globally. Plus the earning season has started on a strong note, with JP Morgan reporting record quarterly profits and sales in the first three months of the year.
On the trade conflict front, US Treasury Secretary Steven Mnuchin said a US-China trade agreement would go “way beyond” previous efforts to open China’s markets to US companies and hoped that the two sides were “close to the final round” of negotiations, according to reports.
“China’s total trade with the U.S slumped by 11 per cent in the first three months of this year, suggesting a that if a US-China trade solution is sealed, it will provide a significant and needed boost to Chinas economy and will be much need shot in the arm for the global economy,” Stephen Innes, Head of Trading and Market Strategy at SPI Asset Management said. The DJIA has gained 13 per cent in the year so far, while the S&P 500 index has gained 11 per cent in the same time period.
Gold prices hovered near $1,300 an ounce level as dollar weakened. International spot gold traded at $1,297 an ounce, after having gained 0.3 per cent in the past week.
“Gold has printed a lower high at $1,310 and this casts some doubts over its medium-term outlook but we believe that the weaker US data will be hard to disregard and it will act as the key catalyst here,” Konstantinos Anthis, Head of Research at ADSS said. Gold has shed more than 6 per cent in the past one year.