The market is up 31 points.
The Dow Jones rose 55 points to 16,065, increasing over the day and closing on its highs in a 93 point range. There wasn’t much in the way of news or economic data for markets to focus on.
The S&P was up nine to 1805, closing above 1,800 for the first time.
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Oil was down 0.63%to US$94.84.
Gold rose US$0.50 to US$1244.10 per ounce.
The US$ was weaker against most major currencies. The Aussie dollar continued to weaken after RBA Governor Glenn Stevens left open the possibility of currency intervention. The $A is currently trading at US$0.9177.
VIX volatility index fell 3.16% to 12.26.
US treasury markets were stronger — the yield on the 10 year bond fell four basis points to 2.745%.
European shares were stronger — the French CAC was up 0.58% and the German DAX rose 0.25% after positive German data. The UK FTSE fell 0.11%.
European bonds were mixed. The yield on the Euro 10 year bond was one basis point higher. Other markets were mixed.
Base metal prices were stronger — zinc rose 1.1%, copper rose 1.05% and nickel was 0.99% higher. Aluminium was slightly weaker.
Iron ore rose US$0.20 to US$136.50 a tonne.
- Warrnambool Cheese & Butter (WCB) — Saputo has increased its takeover offer to $9.20 cash per WCB share, up from from $9.00.
- Monetary policy on hold even if tapering begins — Atlanta Fed President Dennis Lockhart said on CNBC that monetary policy is likely to be very accommodative for some time, perhaps even years, after the Fed starts to taper.
- Both the Dow Jones and the S&P 500 set all-time closing and intraday record highs.
- The best performing sector in the US this year has been the healthcare sector, up 37.5%.
- The Aussie dollar has dipped below 92c after last week’s comments from the RBA Governor Glenn Stevens succeeded in talking the Aussie down. He said the dollar was overvalued on economic fundamentals and talked about the possibility of intervention (the RBA selling the A$). The lower-than-expected Chinese HSBC PMI number and a higher US dollar also helped the fall. The recent three-year low was 88.48c.
- Strong German business sentiment numbers saw the euro hit a four year high against the yen.
- The oil price hit its highest price in a month although a deal with Iran over uranium enrichment over the weekend might see it lower today.
- Uranium is around its lowest level since 2005 and half the price it was prior to the Fukushima disaster in 2011. Goldman Sachs is reported to be closing its uranium trading desk which holds physical stockpiles in warehouses and is licensed by the US government to do so. The longer term argument for uranium includes the nuclear renaissance of Japan and the proliferation of nuclear reactors with 70 under construction at the moment mostly in China, Russia and India — all of which will require tons of uranium to operate according to the World Nuclear Association.