Market Update:
Last night was the first back to back improvement in the US Markets in a month with the Nasdaq up 2%, the Dow and the S&P 500 both posting 1% gains. The USD added a 16-month high with all positives stemming from a stream of strong corporate earnings results and improved sentiment; Global oil prices fell on Wednesday as US crude stocks rose for a sixth successive week. According to the US EIA, inventories rose by 3.2 million barrels last week which was below expectation of 4.1 million barrels. Brent down 1.2% and WTI down 1.3%; Base metals closed mostly lower, nickel and zinc were among the worst performers down 2.3% and 2.0% respectively; The US Treasury announced debt sales will surpass levels last seen during the Financial Crisis with the ballooning budget shortfall fuelled by tax cuts, spending hikes and an aging population is driving a raise in long term debt to $US83b from $US78b; The Chinese leader Xi Jinping in a statement on Wednesday suggested that “The leadership is paying great attention to the problems, and will be more pre-emptive and take action in a timely manner”. The Politburo reiterated that China will maintain a proactive fiscal policy and a prudent monetary policy.
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