Another record-breaking performance on Wall Street took the Dow Jones and S&P above important numerical levels.
The Bank of Canada raised its interest rate as expected yesterday. The Pound has gained on hope for a soft Brexit. Asian shares continue to trade near the record high.
The Dow Jones finished above the 26,100 level and the S&P surpassed the 2,800 mark on Wednesday, in another record performance from Wall Street. The promise of structural tax reform and a friendly business environment via the U.S government is spurring on investors. And the Bank of Canada raised its interest rate as expected yesterday. Today Crude Oil Inventories will come from the States.
The Yen has weakened and is above the 111.00 juncture versus the U.S Dollar. Economic data from Japan has been impressive this week, which has led some analysts to suggest the Bank of Japan may begin to change its monetary policy. The Nikkei Index has gained cautiously this morning, along with the Shanghai Shenzhen composite from China.
The Euro has come off its highs against the U.S Dollar and is below 1.22. Inflation data from the European Union met its target yesterday, which sets traders up for next week’s European Central Bank pronouncements. The Pound was stronger, however, yesterday, as some British politicians suggested a softer approach to the Brexit is possible. European equities continued to produce selling on Wednesday.
Gold experienced additional selling pressure on Wednesday. The precious metal is near 1327.00 U.S Dollars an ounce. Market conditions appear fragile as traders consider the stellar gains made in the commodity the past month, and the notion profit taking will continue to be attractive.
U.S Housing Sector Data Today, Oil Supply Numbers from States
Building Permits data will come from the U.S at 13:30 GMT and investors will look at the results.
Yaron Mazor is a senior analyst at SuperTraderTV.
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Yaron has been involved with the capital markets since 1998. During the past 16 years, Yaron has been a day and swing stocks trader in the American market. Yaron has founded and made successful investments into businesses spanning exciting industries – from apparel to restaurants and bars, to high tech, medical technology, and education.