Wall Street continues its winning streak and makes new highs

Ross J Burland FXStreet

Wall Street has continued its winning streak, with the benchmarks all closing at record levels yet again.

The Dow Jones Industrial Average gained 64 points, or 0.3%, to end at 19,613, while the S&P 500 added just 4 points, or 0.2%, to finish at 2,246. The Nasdaq Composite Index climbed 23 points, or 0.4%, to close at 5,417. The mood was risk-on with a dovish ECB and stocks rose with Wall street taking up the baton. The US dollar index ended 0.9% higher. The Fed funds futures still implies a 100% chance of a rate hike on 14 December, with two more rate hikes priced in for 2017.

There was a rise in US yields with the US 10yr treasury yields rising from 2.34% to 2.42% and 2yr yields rising from 1.09% to 1.13% before retracing to 1.10% - the pressure on bonds and yields rising comes in a response to the ECB's announcements while markets expect a potential reflationary fiscal environment in the US.

ECB, tinkering not tapering - Nomura

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

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