US stock indices have been mixed over past sessions with Dow Jones index rallying strongly and making record highs last night , whilst the S&P500 and Nasdaq indices consolidate below record levels. US bond yields have backed of from the range highs of last month as US Fed chair talks of inflation dropping over time. The retail sector had a poor session after Amazon raised the minimum hourly wage which may increase the overall wage cost for retailers struggling to attract workers.
The success of the trade deal with Canada and Mexico has given Pres Trump some confidence that a fairer deal may be closer with China , but many analysts do think that China will never deal under this type of negotiation. The drama of getting an Italian budget agreed to by the EU is causing volatility in the markets with a sharp rise in the level of bond yields causing concern as Italy has a hugh debt to be paid.
The strength of the US economy will be on show on Friday with the employment data released , and earnings season for Q# starting. This will be offset by trade concerns and emerging market issues.
Latest prices are:
Dow Jones 26889 up 111 / S&P500 2933 up 10 / Nasdaq 100 at 7659 up 33
EUR 1.1533 down 13 / GBP 1.2989 up 12 / JPY at 113.83 up 15 / DXY 95.25 up 11.
Gold 1203.70 up 1.00 / WTI crude oil 75.23 flat.
Daily Chart - WTI Crude Oil futures - Back at yearly highs with OPEC saying they may not be able to provide much more supply.