Positive bank results and speculation over AI advances lift major US stock indices to fresh long-term high prices.
- US stock markets rose strongly yesterday, amidst a strong bullish trend which saw prices advance to new 1-year highs in the NASDAQ 100 Index and the S&P 500 Index. The rise yesterday is seem as powered by a good set of bank results, which broadened the rally. Trend traders will be attracted to being long of these indices now.
- In the Forex market, the Japanese Yen has weakened as the Governor of the Bank of Japan stated that monetary easing will continue, pushing the USD/JPY currency pair up to ¥139.41. The EUR/USD reached another 15-month high yesterday above $1.1270 but has made a bearish retracement. The Asian session has seen the strongest major currency as the US Dollar while the Yen has been the weakest.
- There was a release yesterday of Canadian CPI (inflation) data which came in weaker than expected, with a month-on-month increase of only 0.1%, lower than the 0.3% which was expected. However, other inflation metrics were higher than expected.
- There was a release yesterday of US retail sales data which came in lower than expected, at a month on month increase of only 0.2% when 0.5% was expected. This may boost the case for fewer rate hikes from the Fed over the near future.
- There was a release yesterday of New Zealand CPI (inflation) data, which was higher than expected, showing a quarterly increase of 1.1% when only 0.9% was expected. However, the Kiwi has been weakening against the US Dollar.
- There will be a release today of UK CPI (inflation) data, which is expected to show a drop in the annualized rate from 8.7% to 8.2%.