– A huge week for stock market bulls with weekly closes in the S&P 500 and Dow of 1,800 and 16,000 respectively for the first time. The Dow finished at 16,065 up 0.34% while the S&p 500 finished at 1,805 up 0.51%. The Nasdaq closed at 3,992, just 8 points off a weekly triumvirate of historic levels – 1,800, 4,000 and 16,000.
– It’s easy for the bears to poo poo the market as overdone but for the moment there remains more bullish momentum and a capitulation amongst the bears. So who knows how far this market will run until traders start to concentrate on the Fed’s last policy meeting on December 17-18.
– In London, the market was much more subdued, with the FTSE finishing down 0.11% at 6,674. The DAX was up 0.25% to 9,219, while the CAC was 0.59% higher. In Milan, stocks fell 0.11%, while in Madrid they rose 0.81%.
– Worth noting over the weekend were comments from German Finance Minister Schaeble that Europe no longer has any contagion risks and that Greece has done a solid job over the past 18 months. True, most likely, but instead of contagion, it looks like it might now face deflation.
– On the Sydney Futures Exchange, the December SPI 200 contract finished up 23 points to 5371 bid. On the bond boards, the 3- and 10-year futures rallied 4 and 4.5 points respectively, reflecting a move of similar magnitude in US 10’s which closed at 2.75%.
– On Forex markets, the stronger-than-expected German Ifo data showed improvement in conditions, climate and expectations, helping drive the euro up to 1.3556 close. Sterling is back above 1.62, closing at 1.6224 and USDJPY pushed higher as well, up to 101.24 at the close. The Aussie’s sell-off continued and it closed under intense pressure at 0.9166 and a full retracement back under 89 cents. Glenn Stevens has been important in turning the tables on the bulls.
– On commodity markets, Gold was largely unchanged at $1243, Crude rallied a little up 0.63% to $94.72 Bbl and Copper is back at $3.23 lb. Corn and Wheat were largely unchanged but Soybeans rose 2.17%. Bitcoin traded up near 900 again over the weekend and sits at 760 at time of writing.
On the data and speech front, it’s a holiday in Japan today but BoJ Governor Kuroda is talking anyway, ECB Member Noyer is speaking as well, as is RBA deputy Governor Lowe. In the US, pending home sales and Dallas Fed will be released.