Shares Drive Higher – Nasdaq up 0.6%
US stock markets shrugged off Fed commentator’s warnings that rate cuts may not be as close as some think and drove higher on the opening day of the week. Wall Steet’s major indices all added to recent strong gains again, the Dow finishing just above flat but the S&P added another 0.45% and the Nasdaq gained 0.61% on the day. Treasury yields rose slightly on the back of the Fed comments, the 10-year adding 1.5 basis points and the 2-year rising to 4.46%. The dollar consolidated around recent levels, dropping marginally on the index with both the Euro and Cable gaining 0.25% on the day. Gold moved higher again in line with the dollar depreciation and Oil finished higher after a volatile day.
Oil Prices Climb on Pirate Threat
Oil prices moved higher after a volatile trading day yesterday as fears over Red Sea pirate attacks from the Iran aligned Yemeni Houthi group increased. Oil giant BP had temporarily halted all ships through the Red Sea after a Norwegian ship was attacked on Monday and other shipping firms are looking to use alternate routes to the Suez Canal which see’s around 15% of the worlds oil shipping. Brent futures finished the day up 1.8% at $77.95 a barrel and West Texas Intermediate gained 1.5% to $72.47. Traders are monitoring the situation closely and are expecting to see more volatility over the coming sessions.
Central Bank Back in Focus Today
After a relatively rangebound day yesterday, traders are expecting volatility to pick up again as central banks come back into focus and the data calendar picks up. The Asian session is the major focus with the Reserve Bank of Australia’s Monetary Policy Meeting Minutes first on the agenda for investors before the big event, the latest Bank of Japan rate decision. The European session has relatively little on the calendar, although we do have another MPC member speaking which could keep sterling traders busy. The North American has the initial focus on Canada with the release of the latest CPI data before attention moves south of the border to the US Building Permits data and a speech from FOMC member Barkin.
