(As of 7:25 am PST)
US
markets are trading higher for a third day in a row. If gains are sustained
into the close, it will be the first three session rally since December 21-23
which gives you a pretty good indication of how the year has been for investors
so far. A busy economic calendar today has provided just enough good news to support
the early session rally. Housing starts were weaker than expected while
building permits, a sign of future demand, were in line. The cost of producing
goods and services rose in January while industrial production and capacity
utilization reports also beat the consensus estimate. Investors’ main concern
of the day is on the release of minutes from the Federal Reserve’s January
26-27 meeting. Last week’s testimony by Chairwoman Yellen was a precursor to
what we are expected to see which has been an increasingly dovish tone from the
Fed. Expectations today are that the central bank will provide communication
hinting at a hold on interest rates until the September meeting. Oil continues
its rise, soaring nearly 3% today all on hopes that Iran will get on board with
the production freeze agreement. Interest rates are higher today as money is
being put to work in risk assets.
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