US equities at, or near, record highs
The rotation into stocks from bonds and safe havens continues, with most US indices hitting new record highs, or hovering close by. US data showed resilience in the economy which helped oil prices, along with fears of production cuts.
US30USD Daily Chart
The US30 advanced for a third day yesterday, reaching a two-week high and just below the recent all-time high
The 55-day moving average has risen to at 28,508 while the 100-day moving average is at 27,845
The final Markit services PMI rose to 53.4 from 53.2 initially while the ISM equivalent jumped to 55.5 from 54.9. That’s the highest reading in five months. Q4 unit labour costs are seen easing to +1.3% from 2.5% in the previous quarter. Fed’s Kaplan is scheduled to speak.
DE30EUR Daily Chart
The Germany30 index climbed for a third consecutive day yesterday, reaching the highest since January 27 in the process
The index is above the 55-day moving average at 13,283 while the 100-day provides longer-term support below at 12,988
Euro-zone data yesterday was mixed with a stronger services PMI but weaker retail sales. Today’s data includes German factory orders for December, while the European Commission releases its economic growth forecasts. Speeches from ECB’s Lagarde and De Guindos are also lined up.
WTICOUSD Daily Chart
Crude oil prices rebounded strongly yesterday, buoyed by economic data and the threat that OPEC+ could introduce deeper production cuts to stem the oil price slide
WTI jumped the most in two months yesterday, rebounding from 13-month lows
Weekly oil stockpiles data from the Energy Information Administration showed an increase of 3.36 million barrels in the week to January 31. It was more than the surveys suggested but below the previous week’s level of +3.55 million barrels.