Data Drives Wall St Higher – Nasdaq up 1.65%
Data out overnight in the US pointed to a resilient economy and Wall Street took the hint and surged higher. It had been a tough last week or so for US stock markets but strong Durable Goods numbers and Consumer Confidence allowed for a decent rally on the major indices yesterday. The Nasdaq had been bearing the brunt of the recent downturn but it had the best of it yesterday, closing 1.65% in the black, with the S&P and Dow trailing in its wake, up 1.15% and 0.63% respectively. The dollar took a hit on the relief rally and more hawkish comments from ECB President Christine Lagarde helped to lift the Euro.
Oil Prices Hit on Rate Hike Concerns
The oil market has experienced some whippy price action within ranges over the last few weeks, as OPEC moves, potential Russian civil war and US interest rates have all come to bear on black Gold. Yesterday’s price action saw a significant slump for both WTI and Brent, with them closing the day down 2.4% and 2.6% respectively and traders are watching closely to see if we break out of recent trading ranges. Overall traders are looking at the larger macro-economic conditions in the second half of the year and despite good signs from the US economy, most Oil bulls would also like to see some signs of growth and therefore demand from China. WTI now sits just above the yearly low and a clean break through the $63 level could see us trading in fresh lower ranges for a while – we have seen it bounce from beneath the $70 mark on several occasions this year and bulls will be hoping for a repeat.
Inflation Data and Central Bankers Ahead Today
The market has opened strongly today in Asia and investors will be hoping the sentiment continues throughout the day. The initial focus for the APAC region will be on Australia where the key CPI inflation data is due out this morning. The European session is set to be quieter with little in the way of data due and the same can be said of the North American session later in the day. However, we do have some, or arguably most, of the world’s most influential central bankers due to speak at the ECB forum in Sintra today and therefore expect volatility as traders look for more forward guidance on interest rates.
