Global Stocks Push Higher – Dow up 0.85%
Global stock markets pushed higher again in trading yesterday with European bourses leading the way, the FTSE 100 and the Euro STOXX6000 both hitting record highs. US indices again moved north later in the day after higher unemployment claims data increased investor hopes of earlier cuts from the Fed. The Dow recorded a 7th straight positive session, closing up 0.85%, the S&P added another 0.51% and the Nasdaq rose 0.27%. US Treasury yields drifted lower after the data, the 2-year losing 2.8 basis points and the 10-year 2.6, to finish the day at 4.815% and 4.457% respectively. Oil prices gained ground on hopes of increased demand from both China and the US, Brent adding 0.4% to $83.88 a barrel and WTI pushing 0.3% higher to close at $79.26 a barrel. Gold gained ground again in line with the weaker dollar, closing the day up 1.14% at $2,340 an ounce.
Oil Prices Pushing Higher
Oil prices moved higher again in trading yesterday to notch up a third straight day of gains. Brent pushed back above the $84 a barrel mark and WTI neared the key psychological level of $80 a barrel as traders looked for swifter easing from the Fed and data pointed to a potential increase in demand. Traders focused on increased signs of growth from China after better than expected Trade numbers yesterday and remain wary of a further escalation of hostilities in the Middle East as talks in Egypt have so far proved inconclusive. WTI has so far capped out under that $80 level which also coincides with the 200-day moving average and traders now feel that a clean break through these levels could open the way for a move back up to the $85 per barrel level where long-term trendline resistance comes in.
Positive Sentiment into the Final Trading Day of the Week
Asian markets are set to open again on a positive footing after gains in both Europe and on Wall Street, although most are expecting topside moves to be limited as local traders have a wary eye on key Chinese data (CPI and PPI) that is due out on the weekend. There is little on the event calendar in the Asian session today, but the UK will again be in focus after yesterday’s BOE hold, with the latest GDP numbers due out early in the day. The US session will see the early focus north of the border as the crucial Canadian employment numbers are released before the focus moves back to the US and the Prelim University of Michigan Consumer Sentiment data comes out to round out what has been a relatively thin data trading week.
