Originally published by Rivkin Securities
The Dow Jones Industrial Average has continued its rally, closing up 1.6% overnight while the S&P 500 climbed 1.2%. The Nasdaq 100 has now reclaimed virtually all of the early February losses in what would be called a ‘V shaped’ recovery. Netflix (NASDAQ:NFLX) was one of the stronger performers last night, gaining 2.9% and making a new record high. Apple (NASDAQ:AAPL) also rallied strongly to close 2% higher as Berkshire Hathaway (NYSE:BRKa) revealed that it has bought more Apple than any other stock this year.
US bond yields have continued to fall with the 10-year yield back down to 2.86% after reaching as high as 2.95% in the past two weeks. Australian bond yields, on the other hand, have fallen quite sharply back to 2.77%, down eight basis points in the last 24 hours. In terms of prices, this represents a bounce from the sell-off that has been ongoing since the beginning of the year. Continued pressure on prices will result from increasing government issuance of bonds as a result of the current administration’s tax and spending policies.
Gold prices rallied during the European session to break back above $1,340 per ounce but subsequently fell back into the low $1,330’s during the US session to finish at $1,332 per ounce. The gold price has been driven largely by the US Dollar Index recently which sold off during the first half of the trading session but recovered during the latter half to close only slightly down. The Australian dollar continues to trade around the midpoint of its one-year range, currently at US$0.785.
Data Releases:
- US Durable Goods Orders 12:30am AEDT