It was a quiet start to the week for US markets overnight, with stocks ending slightly higher amid speculation the Fed will cut stimulus at next week’s meeting.
The S&P500 achieved a new record closing high even though two Fed Presidents signalled the central bank will taper stimulus at December’s FOMC meeting.
Wall Street stayed higher despite the comments, suggesting the market is becoming accustomed to the idea of an eventual reduction to stimulus.
The Dow rose six points to 16026, the S&P500 also put on six points (+0.2%) to 1808 and the Nasdaq inched up three points (+0.2%) to 4069.
In commodity markets, gold strengthened 0.4% to US$1234 an ounce despite the possibility of a December taper, suggesting the precious metal has priced in such an event.
The greenback weakened against some currencies, but continued to appreciate versus the yen on bets the Bank of Japan may ramp up quantitative easing at the same time the Fed reduces stimulus.
In economic news, the NAB Business Confidence Survey and home loans data are both due for release at 11:30am, AEDT.
Written by: marketpulse Other posts from: marketpulse
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