Equites are climbing after the S&P 500 jumped to new highs last week. Overall, markets are bullish, supported by positive economic data and inflationary environments.
The dollar is inching higher
The US economy’s proxy, the S&P 500, continues to climb, as investors obsess over the possible fiscal stimulus the Trump administration will bring. Additionally, favourable economic data and rising inflation has laid out favourable economic expectations for investors.
Today, US financial markets are closed for President’s Day, giving traders a chance to mull over the gains made in last week’s trading session. The pause has encouraged positive yet subdued ripples throughout the market. The holiday usually causes low liquidity and irregular movements.
Commodities’ Corner
Crude oil is no exception to the bullish tones today, up 1.6%, trading at $54.17. The increase comes after Saudi Arabian production exports fell 1.745 million barrels per day in December. The news supports the efforts made by OPEC to curtail production, assuring investors that the organisation is capable of curbing inventories.
Defying its inverse relationship with the dollar, gold is on the rise. Even the safe-haven commodity is enjoying the fruits of an inflationary market, advancing 0.2% this morning. Perhaps there is a divide in investor sentiment. While some focus on supportive economic data and promise of market stimulus, others are distracted by the geopolitical risk and the fragility of the bullish market.
Market Watchlist
The sterling is making gains, up 0.47% against the dollar. Traders are advised to keep an eye on the pound today, as the House of Lords start to deliberate the terms of triggering article 50.
The currency has defied expectations in 2017. Expectations that the pound would plummet as March edged closer have not come to fruition. Instead sterling has gotten off to a positive start this year, as investors remain optimistic about the UK’s economy.