Originally published by Rivkin Securities
After two weeks of declines, the S&P 500 bucked the trend and rallied 0.6% for the day. Despite continued strength in oil prices, the energy sector was the worst performer while virtually all other sectors closed positive. Technology outperformed, achieving double the performance of the index as a whole. Amazon (NASDAQ:AMZN) surged, closing 2.5% higher after a week of weakness.
US long term bond yields continue to drift lower with the 10-year currently at 2.84%. This is only 33 basis points higher than the two-year yield representing a yield curve that is the flattest it has been since the global financial crisis. The final estimate of US 1st quarter GDP was released last night and was revised down by 0.2% relative to the prior quarter for a 2% growth rate. This is relatively mediocre growth although the forecast for second quarter GDP is now at 4.5% according to the Atlanta Fed. Tonight the final estimate of UK 1st quarter GDP is set to be released which is expected to remain unchanged from the prior estimate at 0.1%. This would represent one of the weakest quarterly growth rates in the last couple of years.
The local market has held up remarkably well in recent weeks and has outperformed many global markets. The ASX 200 is only 30 points below a new 10-year high and futures are pointing to a higher open this morning.
Data Releases:
- UK Final GDP 6:30pm AEST
- Canada GDP 10:30pm AEST