Good morning, and welcome to Monday! Here’s the skinny.
– The S&P 500 and the Dow closed on new all time highs in Friday’s trade as the Yellen rally combined with a weaker than expected outcome from the New York Empire State Manufacturing Index (-2.2 v +5 expected). The markets closed on their highs with the Dow up 0.54% to 15, 962, the Nasdaq rose .33% to 3,986 while the S&P 500 was up 7 points or 0.41% to 1,798. No one seems to be fighting this rally at the moment and only fears of Dectaper can really derail it at the moment.
– In Europe early weakness gave way to recovery and the FTSE finished up 0.4% to 6,693, the DAX rose 0.21% to 9,169 and the CAC was 0.19% higher. In Milan the FTSEMIB dropped 0.39% and in Spain the IBEX fell 0.13%.
– Closer to home on Friday the ASX was up 0.86% in what was very positive Asian trade lead by a big 1.95% rally in the Nikkei as the Yen weakened up through 100. On the Sydney Futures Exchange the SPI 200 contract rose another 8 points to 5417 bid. On the Bond boards the 3’s were up 1 and the 10 up 2.5 points and their wasn’t a lot of movement offshore with the US 10’s finishing at 2.71%, while UK and German 10’s closed at 2.58% and 1.71% respectively.
– On Forex markets the US dollar lost ground everywhere except against the Yen where it rose 0.21% to 100.21. The Aussie dollar was up 0.47% as risk appetite boosted buying and the Euro rose to 1.3491 up 0.25%. Sterling’s Carney induced rally continued and it was up 0.32% to 1.6114.
– On commodity markets Gold was largely unchanged at $1,288 an oz, Nymex Crude was 0.1% lower at $93.66 and copper rose half a percent to $ $3.18 lb. Our friends in the Bitcoin market which never closes took it up to a high just under $500 over the weekend a full $200 or 66% higher than the low for the week.
On the data front it is a very quiet start to the week but the closer we get to December and the next FOMC meeting so the importance of every data point and Fed utterance grows. So Bill Dudley and Charles Plosser’s speeches tonight are worth watching.
Today Chinese house prices are out and EU current account tonight before US TIC flows which might be important to gauge any impact of the Capitol Hill shenanigans on offshore sentiment toward investing in the US.