Fundamental Comment

Global shares fall; gold and oil rise

Global shares fall, gold and oil rise

After a week full of events, the indicators on Monday differed between the ups and downs of Asian shares as well as commodities such as gold and oil due to the lack of clarity on the scenario of a trade war between Washington and Beijing, as well as the continuing tense geopolitical situation.

Most Asian shares fell Monday as investors waited for more clarity on US-China trade talks, as a meeting between representatives of the world's two largest economies is expected to take place next month.

Japan’s Nikkei 225 index closed 0.16 percent up at 22,079.09. Australia’s S&P/ASX 200 rose 0.28 percent at 6,749.70, while Hong Kong Hang Seng index slumped 0.85 percent to 26,210 amid the non-stop protests. 

China’s CSI 300 index dropped 1.14 percent to finish at 3,890.66 despite of renewed optimism about U.S.-China trade talks.

Over the weekend, the U.S. Trade Representative Office released a statement describing the talks with China as "fruitful", while the Chinese Ministry of Commerce described the talks as "constructive" and said it had also had good discussions on the "detailed arrangements" for high-level talks in October.

Gold activates safe-haven feature

Gold prices rose on Monday after Saudi enterprises were hit by attacks that brought turmoil to the markets, which supported the position of gold as a safe haven in the face of political risk.

As of 08:26 GMT, gold spot prices hovered around $1,526.25 an ounce, where the precious metal opened today's session near $1,521.65 an ounce.

The escalation of tensions within the Middle East has given the precious metal some support, as the attack on Saudi oil facilities prompted the United States to impose more sanctions on Iran.

The U.S. dollar index moved higher 98.31, ahead of speeches by Federal Reserve Bank of New York President John Williams and Federal Reserve Bank of St. Louis President James Bullard today.  

Oil Shock

Oil prices rose more than 1 percent on doubts about how quickly Saudi Arabia’s Aramco would resume full crude supplies after an attack on the Kingdom's largest processing facility and persistent high tensions in the Middle East.

Brent crude futures ascended to $64.36 a barrel after opening at $64.90 per barrel. The highest level was $65.18 a barrel.

West Texas Intermediate (WTI) crude futures also traded higher at $58.30 a barrel, recovering some of its losses after falling for five consecutive days.

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