Originally published by Rivkin Securities
The Dow Jones Industrial Average made a significant rally overnight, reversing most of the losses from late last week. The index closed up 1.8% while the S&P 500 made 1.7%. The Nasdaq 100 was also up significantly as many of the large tech names rebounded substantially. Tesla (NASDAQ:TSLA) was up over 5% which is a 20% gain from the lows of early April. Despite the ongoing scandal, the Facebook (NASDAQ:FB) share price is now also off its recent lows having climbed 4.5% last night.
Commodities rallied overnight with oil posting large gains. WTI oil is currently priced at US$65.57, a large increase from the US$62.06 from just a few days ago. This rally is partly due to reports that Saudi Arabia is targeting a US$80 per barrel oil price. As a result, the energy select SPDR ETF climbed by 3.3%. The US listed shares of BHP (AX:BHP) were also higher (up 4.8%) on the back of higher base metals and iron ore prices. Precious metals rose despite the general risk on sentiment. Gold prices have just surpassed $1,340 which brings them towards the upper end of their recent trading range.
US producer prices rose in March by 0.3% which brings the year over year increase to 3.0%. This is a sign that inflation is returning to the economy with producer prices seen as a leading indicator of consumer prices. Tonight, the US will release its CPI data for the month of March.
The S&P/ASX 200 rose 0.8% yesterday which was one of its better sessions this year and futures are up 2 points, indicating that the Australian market may hold onto those gains today.
Data Releases:
- US CPI 10:30pm AEST