Originally published by Rivkin Securities
The Dow Jones Industrial Average had a positive session, closing almost 0.5% higher although it was up as much as 1.1% intraday. UnitedHealth Group NYSE:UNH) was the biggest contributor to the move having closed up 1.8%. The S&P 500, on the other hand, actually finished trading just slightly down for the day which now marks the longest losing streak for this index for the year.
The gold price fell steadily over the past 18 hours, currently down US$8.20 at US$1,316. Despite the fall, the price is still within the trading range that has persisted for gold over the past two months. Oil prices moved higher overnight with WTI now trading back above US$61 per barrel. Brent, on the other hand, is just above US$65 per barrel. Oil has been holding its ground over the month as fears of surplus production persist due to rapidly rising shale output from the US. Despite this, inventories are currently only slightly above five-year averages which may be the reason WTI prices have managed to hold above US$60 per barrel so far this year.
Bond yields have fallen modestly over the past couple of weeks but still remain at high levels relative to 12 months ago. The expectation that US 10-year yields would break through the 3.0% level has yet to be realised although markets do still expect a rate hike later this month as well as two to three more later in the year.
S&P/ASX 200 futures are up 12 points this morning.
Data Releases:
- US Capacity Utilisation 12:15am AEDT
- US Industrial Production 12:15am AEDT