Markets are more positive today with the release of the US PPI and CPI showing lower than expected inflation numbers which has improved sentiment and weakened the USD. Stock indices are turning higher in Asia and Europe as the threat of higher interest rates is reduced. Bond yields have dropped slightly so far and Gold , Silver , Platinum and Copper have moved higher.
Concern over the US/China trade dispute remains but talk of further meetings with China in the next few weeks to discuss the issue is giving investors some comfort. Moves by the Central Bank of Turkey to raise interest rates by a further 6% today has helped the Lira and reduced some of the sovereign risk that had been priced in to markets.
The Bank of England and the European Central Bank have left interest rates at current levels with no indication of any change in the future. This makes US assets relatively attractive and has been one of the main reason the USD has remained very strong.
Current prices are as follows:
Dow Jones 26106 up 109 / S&P500 2897 up 8 / Nasdaq 100 7522 up 35.
EUR 1.1673 up 47 / GBP 1.3085 up 37 / JPY 111.42 weaker by 18 / DXY 94.55 down 22
Gold 1209.75 up 3.90 / WTI Crude Oil 69.65 down 0.70.
US10 2.95% / UK10 1.48% / DE10 0.41%.
US Jobless claims were 1000 lower at 204k which is a multiyear low.