US Markets Drive Higher to Start the Week – Nasdaq up 1.4%
US stocks drove higher in trading yesterday to kick off a big earnings week in strong fashion. Investors, hoping for more positive quarterly earnings data in the coming days, pushed the Dow 1.12% higher to 46,706, the S&P up 1.07% to 6,735, and the Nasdaq 1.37% to 22,990. US Treasury yields eased lower again as traders await the first government data update for weeks on Friday, the 2-year down just 0.2 of a basis point to 3.455%, and the benchmark 10-year down 2.9 basis points to 3.980%. The dollar pushed higher against the majors, the DXY up 0.17% to 98.60. Oil prices were steady near recent lows, Brent down 0.64% to $60.90 and WTI off just 0.03% to $57.52. Gold had another big day as it surged back again towards record levels, up 2.45% at $4,356.20 by the close.
Gold Rush Continues – More Fresh Records on the Horizon
Gold powered higher again in trading yesterday as buyers propelled it 2.5% higher to push it close to yet another all-time high. Commentary continues to flood in on its meteoric rise over the last several weeks, with the move being attributed to various theories, including dollar debasement, increased geopolitical concerns, huge portfolio reallocations, and Federal Reserve rate cuts. Most of these can be argued against fairly comprehensively, as other moves in the market do not back up those concepts. However, only time will tell if we do see some corrections in other markets, and if they come, they should be substantial. For now, though, traders are happy to continue to follow the trend – which is being backed up by huge lines outside physical brokers in major global cities – and any dip is looking well supported, as are break trades above previous highs. The current record is $4,381.21, and with the market trading just under that level at the moment, many traders are not expecting that record to last too long.
Quiet Calendar Day Ahead for Traders
It is another quiet calendar day ahead for traders today as the continuing US government shutdown keeps most US data off the schedule. Asian markets are set to open on the front foot after a strong day on Wall Street yesterday, and there is little on the calendar to rock sentiment unless we have further geopolitical updates. The European session is also relatively quiet, with no major data scheduled. We do hear from ECB President Christine Lagarde midway through the day, but most traders are not expecting any substantial market moves around the event, as she has been active on the speaking circuit over the last few weeks. The New York session looks to have the most potential for moves, with the initial focus north of the border for Canadian CPI data before the focus moves back south for earnings numbers later in the day, including Netflix results after the close.
