Spot silver hit its highest level recorded in four months against the U.S. Dollar yesterday, reaching a rate as high as $16.10 per ounce during the Tokyo session. Yesterday’s daily rise of more than 2.50% in the rate came as analysts are seeing a greater upside in precious metals against the greenback after the Federal Reserve emphasizes a more accommodative stance on monetary policy. Although gold has also been trading very near its long-term high price, the gold/silver ratio has dropped below 90, and many are seeing greater room to rise in silver rather than gold.
Stocks Broadly Lower; Yen, Kiwi Strong
Stock markets tended to sell off yesterday, with the benchmark U.S. stock index, the S&P 500, having its strongest downwards move in almost a month, closing down by 0.65%. The narrower Dow Jones 30 Index closed down by only 0.42%.
The Forex market saw the Yen strengthen, while the New Zealand Dollar continued its recent quiet advance to reach a new 3-month high at 0.6747 against the U.S. Dollar.
Netflix Falls on Poor Corporate Data
Shares in the leading American streaming entertainment company Netflix fell by as much as 13% at one point yesterday as the company announced much worse data than analysts had been expecting. Its new subscriber numbers were roughly half of what had been anticipated, raising fears that its heavy spending and relatively low profitability could become a bigger problem for the company’s health going forward.
Barnier Contemplates ‘No Deal’ Brexit
The European Union’s chief negotiator Michel Barnier said yesterday that the U.K. will have to “face the consequences” if it decides to exit without agreeing a deal, although he didn’t specify the precise consequences. His remarks come as the U.K. is overwhelmingly as only days away from a new, more strongly pro-Brexit government assuming office. Barnier’s most interesting revelation was his statement implying that the previous British government never seriously contemplated leaving without a deal as far as he was concerned. This will boost pro-Brexit forces in the U.K. who have long charged that the current U.K. government was not fully serious about securing Brexit under any circumstances, despite Prime Minister May’s public statements to the contrary.