Party like its 1999?
It surely has been another busy weak, as the AUS reporting season has gathered steam….
Just like the Olympics, there have been some “misses” and some “golden moments”…….
Speaking of gold, we are still sitting in 4th position, not a bad outcome with 50% to go!
So what happened last night?
The S&P 500 Index, Dow Jones Industrial Average and Nasdaq Composite Index advanced (Dow Jones +119 points), amid better-than-forecast profits at retailers Macy’s Inc. and Kohl’s Corp.
Europe’s stocks closed at the highest since May.
Oil climbed on speculation producers could agree on moves to support prices during talks in September. Treasuries fell as an auction of 30-year bonds saw a retreat from the level of investor interest at previous sales this week. Mexico’s peso led gains among major currencies as the central bank kept its interest rates unchanged.
Investors have piled into global equities amid better-than-estimated corporate earnings, improving economic data and optimism central banks will stay supportive of growth.
That has been the key…..
In macro-data released, the number of Americans filing applications for unemployment benefits was little changed last week, holding near four-decade lows that highlight a more robust labor market. Still, that stronger jobs picture has yet to convince traders that the world’s largest economy is solid enough for the Federal Reserve to raise interest rates this year.
In Oz, we have another busy day and we will keep a close eye on our CPU and SKL positions to lock some profits.
The SPI is up 12 points this morning
Niv Dagan is an Executive Director of Melbourne based boutique funds management and corporate advisory firm, Peak Asset Management (www.peakassetmanagement.com.au). He is also a regular financial commentator on Sky Business