Originally published by Rivkin Securities
US stocks rose to a new record high overnight with the price now convincingly above the high made in mid-January of this year. Tech stocks have been a part of this rally with the Nasdaq 100 also reaching a new record high as names like Amazon (NASDAQ:AMZN) push the index higher. Amazon stock rose 3.4% overnight to close just $2 below $2,000 per share, a record high for this company.
Oil prices rose on the back of an unexpected US inventory draw, the second week in a row of declines, together with gasoline demand reaching a record high. The start of refinery maintenance season will mean that crude inventories are likely to climb as demand from refineries falls. This time of year is chosen to be after the US summer driving season is over which is when gasoline demand is typically at its highest.
Gold prices have managed to hold above US$1,200 per ounce after coming under pressure the prior session. The price is nevertheless down around US$150 per ounce relative to the levels reached in earlier this year. Part of this weakness has been due to a stronger US dollar, the dollar index is currently 2.9% higher for the year to date, and partly due to expectations of further rate hikes by the Federal reserve. Higher rates are generally seen as a negative for gold since it is not an interest bearing asset.
ASX 200 futures are up 18 points this morning.
Data Releases:
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