Originally published by Rivkin Securities
It was a strong night for stocks with all three of the large US indices opening up and continuing to drift higher for the rest of the day. The Nasdaq 100 was the best performer, climbing 1.05%, which included a 1.82% gain for Facebook (NASDAQ:FB). Both the FTSE 100 and DAX indices also climbed, the FTSE 100 making most of its gains late in the day.
The US 10-year bond yield spiked up as high as 3.09% but eventually fell back to settle where it started at 3.06%. In the last five years the 10-year yield hasn’t spent more than two weeks above 3.0% so it will be key to see if it can hold this level. With the next FOMC meeting now less than a week away, and a rate hike all but a done deal, markets will soon begin to look towards the next rate hike which is currently expected for December.
Iron ore prices have rallied in recent days, reaching a six-month high, after having been stuck in a trading range over that time. There is some optimism that Chinese demand will remain high as iron ore production in China declines. Furthermore, some believe that Chinese policymakers will look to implement a stimulus program to counter the effects of the trade war with the US.
ASX 200 futures are up 22 points this morning.
Data Releases:
- Canada Retail Sales 10:30pm AEST
- Canada CPI 10:30pm AEST