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Market News 【TOP1 Evening】Oil rises above $67, Gold hovers near more than 1-month high as bond yields slip

【TOP1 Evening】Oil rises above $67, Gold hovers near more than 1-month high as bond yields slip

Turkey bans crypto payments citing risks, hits Bitcoin price; WoodMac: Oil Prices Could Drop To $10 In 2050! CEO of world's largest money manager: 'I am incredibly bullish' on the stock market.

TOPONE Markets Analyst
2021-04-16
673

晚间新闻.jpg


Gold


Gold held steady near a more than one-month high on Friday, en route to its second straight weekly gain, boosted by a drop in U.S. Treasury yields and a weaker dollar.


Spot gold rose 0.29% to $1768.60 per ounce, silver rose 0.54% to $25.963 per ounce by 18:00 (GMT+8).


"We've seen that the 10-year yield has pulled back and has broken through that very important 1.6% level and I think that probably means that there is more weakness in yields, at least near term, which is very supportive for gold," said DailyFX currency strategist Ilya Spivak.


Benchmark U.S. Treasury yields slipped to a one-month low, reducing the opportunity cost of holding non-interest bearing gold. The dollar headed for its worst back-to-back weekly drop this year.


Meanwhile, data showed China's economy grew at a record pace in the first quarter, expanding 18.3% from a year earlier.


Recent economic readings from the United States and China have lifted hopes around a swift economic recovery and prompted investors to seek riskier assets.


Earlier this week, Federal Reserve Chair Jerome Powell and other Fed officials, said the brighter economic forecasts and a brief period of higher inflation will not affect monetary policy and the central bank will keep its support in place until the crisis is over.


"In the long run, some amount of inflation, due to the massive influx stimulus money, will keep gold supported," said Stephen Innes, chief global market strategist at financial services firm Axi.


Gold tends to benefit from widespread stimulus measures from central banks because it is widely viewed as a hedge against inflation.


Turkey's central bank banned the use of cryptocurrencies and crypto assets to purchase goods and services, citing possible "irreparable" damage and significant transaction risks in a move that cooled global bitcoin prices.


In legislation published in the Official Gazette on Friday, the central bank said cryptocurrencies and other such digital assets based on distributed ledger technology could not be used, directly or indirectly, as an instrument of payment.


Turkey's growing crypto market has gained momentum in recent months as investors joined a global rally in bitcoin, seeking to hedge against lira depreciation and inflation, which topped 16% last month.


Bitcoin was off 4.25% at $60602.0 at 18:00(GMT+8) after the Turkish ban, which was criticised by the main opposition party.


Forex


The dollar headed for its worst back-to-back weekly drop this year amid a continued retreat in Treasury yields from more-than-one-year highs as investors increasingly bought into the Federal Reserve's insistence of continued monetary support.


The U.S. dollar index fell 0.07% to 91.63 by 18:00(GMT+8).


Retail sales increased 9.8% last month, beating economists' expectations for a 5.9% increase, while first-time claims for unemployment benefits tumbled last week to the lowest level in more than a year, separate reports showed Thursday.


The dollar traded at 108.68 yen, heading for a 0.9% loss for the week, about the same as the previous week.


The euro changed hands at $1.1964, set for a 0.5% weekly advance, adding to the previous period's 1.3% surge.


Crude Oil


Oil rose above $67 a barrel on Friday, gaining for a fifth session, as a stronger demand outlook and signs of economic recovery in China and the United States offset rising COVID-19 infections in some other major economies.


U.S. West Texas Intermediate (WTI) crude was at $63.666 a barrel, rose 0.46%, Brent was down to $66.826 a barrel, rose 0.45% by 18:00(GMT+8).


China's gross domestic product jumped 18.3% in the first quarter from a year earlier, official data showed on Friday.


On Thursday, figures showed a rise in U.S. retail sales and a drop in unemployment claims.


"Given the improving outlook for the world's two biggest economies, there is little chance of the market's feel-good glow being extinguished any time soon," said Stephen Brennock of oil broker PVM.


Helping prices rally this week, reports from the International Energy Agency and the Organization of the Petroleum Exporting Countries both made upward revisions to oil demand growth forecasts for 2021.


Brent Crude oil prices could fall to $10 per barrel by 2050 if the world accelerates the energy transition with decisive action to achieve the Paris Agreement climate goals, energy consultancy Wood Mackenzie said on Thursday.  


The scale of change if the world moves on track to limit global warming to 2 degrees Celsius would be so great that it would revolutionize the energy industry and sink demand for oil, the power of major oil producers, and oil prices, according to WoodMac.


Still, the consultancy's Accelerated Energy Transition Scenario (AET-2) is just one of many scenarios for the future of global energy systems and not the base-case scenario, Wood Mackenzie noted.


Under the AET-2 scenario, global oil demand is expected to drop significantly and lead to a significant decline in oil prices. OPEC will likely have a market share of over 50 percent by 2050, but less control over the market because of the steep fall in demand, according to WoodMac. The low-cost producers in the Middle East would still be the main oil suppliers to the world, but prices could be as low as $10 a barrel Brent.


Stocks


Stocks in Asia-Pacific closed higher on Friday.


Nikkei 225 rose 40.68 points or 0.14%, close at 29,683.37.

S&P/ASX 200 rose 4.90 points or 0.069% to close at 7,063.50.

Hang Seng Index rose 176.57 points or 0.61% to 28,969.71.

South Korea's Kospi rose 4.29 points or 0.13% to 3,198.62.

Taiwan capitalization weighted stock index rose 82.08 points or 0.48% to 17,158.81.


Europe stock markets opened higher on Friday, At press time: 


FTSE 100 Index rose 29.25 points or 0.42% at 7,012.75.

Germany DAX 30 rose 100.69 points or 0.66% at 15,356.02.

France CAC 40 rose 18.32 points or 0.29% at 6,252.46.


BlackRock CEO Larry Fink said Thursday he's optimistic about financial markets as the economy attempts to recover from the coronavirus pandemic.


"I am incredibly bullish on the markets," Fink said in an interview on CNBC's "Squawk Box." He noted that a host of factors are likely to propel markets higher in the near term, even as the S&P 500 and Dow Jones Industrial Average hover near record levels.


"I believe because of monetary stimulus, fiscal stimulus, the cash on the sidelines, earnings, the markets are OK. Markets are going to continue to be stronger," said the co-founder and chairman of the world's largest asset manager.


"A big reason why there's so much cash sitting on the sidelines during Covid and during remote working our behaviors have changed dramatically," Fink explained, noting the amount of money many commuters are saving by not going into work.


"Whether the money is coming from a stimulus check or is coming from savings or behavior changes for savings, I think it's fantastic that we're seeing more people either investing for the long term or even trading," he added.


Fink also commented on BlackRock's institutional client base, which includes pensions funds, saying climate change and inflation risk are bigger concerns to them than cryptocurrencies.


Focus Tonight


22:00(GMT+8): United States Michigan Consumer Sentiment Prel (APR); Forecast: 89.6, Previous: 84.9;

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