Originally published by Rivkin Securities
US stock markets continue their rally as the S&P 500 climbs just over 1%. Tech stocks were the real performers, however, as the Nasdaq 100 climbed 2.1% which included a 2.3% gain in Facebook (NASDAQ:FB) stock. This is a significant one-day rally for FB since the stock took a dive following on from the Cambridge Analytica scandal. Amazon (NASDAQ:AMZN) stock surged by 4.3% as it too recovers from negative press after President Trump specifically attacked the company in his Twitter posts.
Chinese GDP came out at 6.8% yesterday as expected although industrial production was lower than anticipated at 6.0%. China’s economy continues to power along even if at a lower rate than a few years ago. The economy has so far avoided the ‘hard landing’ that some thought may come following years of double digit economic growth. With the first quarter growth rate at 6.8%, the economy is so far running above the government’s target of 6.5% growth.
Gold prices continue to hold below US$1,350 with this level proving to be very strong resistance. From a technical point of view, a break of this level could see rapid upside. Gold is currently trading at US$1,346 per ounce. Oil prices are holding near three-year highs for the time being and with inventories back in line with normal levels, the supply glut of the last few years appears to be over. OPEC production is currently lower than expected as a result of large declines in Venezuelan output caused by a deterioration in the economic situation there.
Data Releases:
- UK CPI 6:30pm AEST
- Canada Interest Rate Decision 12:00am AEST