A major blow to the EU! The populist Five Star Movement won about one-third of the votes in the Italian general elections. It’s another negative shock for the European establishment. Will these stars shine on gold?
European stocks and the euro rose on Monday, battling back as investors bet that Prime Minister Matteo Renzi's resignation after voters rejected his constitutional reforms would not trigger a snap election in Italy.
Crude oil prices, like the rest of the global markets, are shaking off the Italian “No" vote on constitutional reforms and Italian Premier Matteo Renzi announced resignation and instead are focusing on growth and OPEC production cuts. After opening lower, the global markets came roaring back as it might not be all bad that Italy is seeking change.
The dollar gained ground against the yen on Tuesday after a roller-coaster 24 hours which traders say may just be a precursor to three weeks of risk-packed events for the $5 trillion a day currency market.
Gold rallied to its highest since 2014 today and crude struggled to recover from deep losses, as renewed fears over the impact of Britain's exit from the European Union pushed investors toward safe havens.