The S&P 500 climbed up 0.3% on Tuesday to close at another record high of $2,496, while other major US indices, the Nasdaq and the Dow Jones also rose 0.3% as investors rushed to place bullish bets in risker assets.
The positive vibes haven’t spilled over to today however, with US equities trading downwards. Insurance stocks soared 2.6% on Monday after concerns over Hurricane Irma diminished. Today, insurance stocks have lost some of those gains, trading 0.1% lower overall.
In early morning trading, European equities were slipping back. As we edge closer to the US opening bell, European bourses are starting to gain momentum. France’s CAC 40 has gained 0.08% and Germany’s DAX 30 has added 0.19% to its value. UK stocks are dipping thanks to this week’s rally for sterling.
Overnight, Japanese equities were climbing, driven by a 1.3% increase in financials. Australia’s SPI 200 came off slight gains now flat as we veer into the afternoon.
The pound has come off a one-year high against the dollar after weaker-than-expected wage data. Additionally, average earnings failed to meet expectations. On Tuesday, the pound climbed to a one-year-high after better-than-expected inflation data. The mixed hard data results come before tomorrow’s interest rate decision, where members of the Bank of England will vote on the cost of borrowing.
The Japanese yen was slightly stronger against the dollar at $110.05.
The dollar is 0.1% weaker against a basket of peers. Core PPI/mm illustrated the repercussions of the recent natural disasters on the US economy, coming in under the forecasted 0.2%, at 0.1%. The greenback remains muted before the release of inflation data on Thursday as investors are reluctant to take on new positions ahead of the imperative data.
The euro is 0.17% higher against the dollar as no major economic data is hindering nor helping gains for the single currency.
OPEC are considering extending output cuts, lifting Brent oil 0.8% higher on Tuesday. However, the rally has halted today, leaving Brent Oil 0.2% lower. Meanwhile, crude oil is 0.1% weaker ahead of today’s inventory report (14:30 GMT).
Gold is 0.14% higher thanks to today’s lower stock valuations coupled with the weaker dollar.
Bitcoin is 7.19% lower, while Litecoin is 9.7% lower, as investor concerns mount. Negative comments from business tycoons and the possibility of regulatory constraints have swept the cryptocurrency markets, dragging Bitcoin below $4000 and Litecoin below $65.