Equity Markets were flat across the board yesterday as they took a respite from the recent volatility. Major markets gained less .15%. The Dow is still clinging to a small year to date gain while Japan’s Nikkei is down for the year as is the Stoxx Europe 50 and the FTSE 100. This may explain the Greenback recent surge.
Dow & DXY
Oil continues to lose ground but managed to stay barely above $70 a barrel, after trading as low as 69.27. Gold was flat on the day as it continues to firm after briefly retracing from its recent new all time high. Gold closed at 1,228.10
The Forex market has been the hot spot for volatility. The DXY is trading above an 86 handle. Commodities currencies have started to show signs of weakness as commodity prices continue to consolidate lower. The AUD gave back 1.01% on the day as it closed at .8771. Major support levels for the AUD hold at .8650. The Kiwi lost 1.34% to the Greenback as it trades below its 200 day moving average.
Yesterday saw a couple of surprises in the U.S. The Empire Manufacturing Index fell unexpectedly to 19.11 from the prior months reading of 31.86. Somewhat offsetting that disappointment were TIC Flows which soared to $140.5 billion. A near $100 billion gain from the prior month! For today, in the U.S, PPI numbers will print. CPI data will be released in he U.K and Euro-zone. Investors are now hoping these numbers stay in check as inflationary pressures at this juncture would most likely push markets lower.
- Alex Perlmuter
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