Market Update – Overnight Recap – Morning Wrap – US Indexes back at highs Gold starts a continuation?
Trade Deal Phase 1 maintains drive back into shares.
Overnight, US and European shares continued higher as trade deal hopes continued to support buyers. The Nasdaq added 1.32% and retested its all-time high while the SPX500 ended slightly higher above its November record. Once again we’re seeing US indexes at positions that could set up new extensions deeper into new 2019 records. The FTSE lead the gains in Europe adding 0.95%
The USD moved higher overnight, the AUD and EUR fell while the GBP gained on ICM poll results showed the conservatives at 41% this was also a driver for the FTSE. The EUR edged back into the red after German Ifo, the figure came out higher but the Ifo commented that German manufacturing was still in recession.
This morning Fed Chair Powell spoke at the Providence Chamber of Commerce Annual Meeting, in Rhode Island.
- Fed Chairman Jerome Powell said Monday the central bank is “strongly committed” to maintaining 2% inflation. – CNBC
- The remarks are seen as an indication that the central bank is unlikely to raise rates anytime soon. – CNBC
His comments have not had any dramatic effect on currencies this morning. Risk currencies remain flat to higher. the AUDUSD higher while the EURUSD is flat. The EUR and AUD do have decent gains to the JPY at this stage.
Local shares are higher the ASX200 +0.72% and the Nikkei 0.90% higher. After the pro-democracy landslide vote in Hong Kong, the Hang Seng has surged, up 1.50%
In today’s video, we look at US index daily charts and at Gold. Sellers look to have finally set off a continuation but still face possible resistance at a low that stands around 1447.80.