USD and Euro pick up globally

US stocks edged lower on Wednesday after days with increases and new record highs.  Disappointing results from heavyweights, Caterpillar and AT&T, overshadowed a solid quarterly earnings report from the world highest capitalized company, Apple. The dollar DXY-index weighed against a basket of six  major currencies, picked up on data showing stronger domestic manufacturing and housing numbers in June. New home sales rose to a five-year high

Surprise improvement in US and European factory activity offset further signs of cooling in the China’s economy.  New data show that the Chinese manufacturing sector is contracting for the third straight month.  That had an immediate impact on the oil demand where prices fell 2 dollar. NYMEX and Brent crude trade USD 106 – 107 a barrel. On Monday strong statements from the new Chinese Premier lifted global stocks  demonstrating markets volatility on day to day economic news.

Seemingly better outlooks for the United States and Europe caused investors to reduce safe-haven holdings in US and German Government debt.  Gold, a traditional safe-haven asset, which has risen close to USD 100 an ounce over the last four days, snapped its winning streak on profit taking. The same trend is witnessed in silver which also has taken a breathier after several winning days after being in free fall over the five – six months.

Apple’s results which initially were met with some reluctance when presented after the closing session on Tuesday, beat analyst’s forecasts. The stock price climbed 5,9 % at USD 443,87, a far cry thoughfrom the peak numbers in the high 600 a year ago. Apple has promised solid dividends.  This is also pleasing  investord which took the stock to its highest level since June 10th.  The stronger euro-zone factory data sent the Euro/USD to a one month high at 1.3230. USD/JPY  is gaining ground trading above 100 yen to a dollar.

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