Greenback Higher, Stocks Met Maximums

Market Reviews

US stocks hit maximums. They were boosted by yesterday’s manufacturing figures. DOW grew 152.51 pts (0.68%) and settled at 22557.6. S&P 500 increased 9.76 points (0.39%) and closed at 25.29.12. NASDAQ rose 20.76 points (0.32%) and ended at 6516.72. 10 year yield lifted 0.011 and closed at 2.337. The greenback reinforced as well. Australian dollar is weak after Reserve Bank of Australia once again stood pat. Interest rate remained at 1.50%. Philip Lowe (RBA Governor) said that members’ economic projections were lived up. Wage growth is expected to remain soft.

Yesterday, Neel Kashkari (Minneapolis Fed President) claimed that inflation is low because of Fed’s monetary policy. He added that rate hike is so far unnecessary. But, the December move is priced in 77.8% odds. Peter Praet (ECB chief economist) acknowledged the need of asset purchase program extension and monthly purchase reduction.

Australia building approvals increased 0.0% mom in August. Last month, Japan consumer confidence rose to 43.9 and monetary base was up 15.6% yoy. Britain will release construction PMI and Eurozone will announce Producer Price Index.