Asia Market News
Stocks came within reach of testing their 2016 peak on Wednesday as prospects of solid U.S. growth and accommodative economic policy in major markets whet investors’ risk appetite damaged by uncertainty from Brexit. The Nikkei gained 1.0% to 16,444.25 in morning trade.
Currency Market News
The USD/JPY fell 0.5% to 104.20 as the prospects for more economic stimulus in Japan helped bolster risk sentiment. The EUR/USD edged slightly up to $1.1064. GBP/USD was 0.3 percent higher at $1.3288, after climbing 1.9% on Tuesday.
Commodity Market News
Crude futures fell on Wednesday as investors locked in gains after oil prices rose nearly 5% in the previous session, partly on forecasts from the U.S. government and OPEC that demand would increase next year. Brent futures fell 37 cents to $48.10 a barrel after settling up 4.8 percent, in the previous session. U.S. crude fell 28 cents to $46.52 a barrel after ending the previous session up 4.6 percent. The American Petroleum Institute on Tuesday said U.S. crude inventories rose by 2.2 million barrels in the week to July 8 to 523.1 million barrels, compared with analysts’ expectations for a decrease of 3 million barrels. Spot gold edged up 0.4% to $1,336.90 per ounce.
US Market News
The S&P 500 and Dow industrials traded at record highs on Tuesday, with a sharp rebound in crude prices boosting energy shares. The Dow Jones industrial average rose 0.66%, to 18,347.67; the S&P 500 gained 0.7%, to 2,152.14. United Continental (NYSE:UAL) was up 8.8% after saying its quarterly passenger unit revenue would fall less than expected. The outlook also boosted other airlines and an industry index rose 4.6%. Hard-disk drive maker Seagate (NASDAQ:STX) rose 21.8% on strong preliminary results. Rival Western Digital (NASDAQ:WDC) rose 4.8%.
Bond Market News
U.S. Treasury yields rose on Tuesday as expectations of new stimulus in Japan boosted stocks and reduced demand for safe haven bonds, and after the Treasury Department saw the weakest demand for 10-year notes at an auction in seven years. Benchmark 10-year notes ended down 24/32 in price to yield 1.513 percent, up from 1.434 percent late on Monday. Thirty-year bonds traded at record low yields of 2.089 percent overnight on Monday, before backing up to 2.233 percent on Tuesday.
Economic Calendar
- 15:00 GMT+1 CAD BOC Monetary Policy Report
- 15:00 GMT+1 CAD BOC Rate Statement
- 15:00 GMT+1 CAD Overnight Rate
- 15:30 GMT+1 US Crude Oil Inventories
- 16:15 GMT+1 CAD BOC Press Conference
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