- US National Security Advisor Sullivan: Main topic of discussion with Putin/Biden was Ukraine
- US consumer credit $16.9 billion versus $24.9 billion estimate
- Kremlin comments on Biden/Putin virtual meeting today
- WTI crude oil futures settle at $72.05
- US Congress considering plan to raise debt limit by US$2 trillion
- Pres. Biden: Voiced deep concerns over Russia's action in Ukraine
- U.S. Treasury auctions off $54 billion of 3 year notes at a high yield of 1.000%
- Fauci: Real-world evidence accumulating on Omicron shows higher degree of transmissibility
- Major European indices close higher for the second consecutive day
- Atlanta Fed GDPNow estimate 8.6% vs 9.7% on December 1
- Canada Ivey Purchasing managers index 61.2 for November versus 59.3 previous
- Global dairy trade price index +1.4%
- US international trade balance for October $-67.1 billion versus $-66.9 billion estimate
- Canada international merchandise trade for October 2021 $2.1 billion versus $2.2 billion estimate
- US nonfarm productivity (revised) -5.2% versus -4.9% expected
- The AUD is the strongest and the EUR is the weakest as the NA session begins
The NASDAQ and S&P indices had their best days since March spurred on by less fear about the omicron variant. The US debt ceiling is finally being resolved and will be a problem until after the midterm elections. Technically, the major indices also increase their bullish bias.
The S&P index on Friday stalled it's fall against its 100 day moving average on the downside and moved higher. Yesterday, the price closed back above its above its 50 day moving average. Today, the price gapped higher and further away from those MAs on the open and didn't look back. The S&P closed up over 2.0% on the day and is just 1.2% away from it's all time high.
For the Nasdaq index, it fell below its 100 day MA on Friday and again on Monday, but closed above that key moving average on each of those days. The price yesterday did stall under its 50 day moving average (currently at 15294.27), but did gap above that moving average at the open and did not look back. The index rose over 3% (3.03%) but did close between it's near converged 100 and 200 hour moving averages (at 15677 and 15695). Tomorrow, will be another key open for that index. Open higher and the bias is more bullish. Open lower in the bias is more bearish.
European indices also moved sharply higher for the second consecutive day. The German Dax rose 2.82%, and the France's CAC increased 2.9%.
The move higher in stocks occurred despite the rise yields once again. After rising by near the 10 basis points in the 10 and 30 year maturities yesterday, both those issues were up nearly 5 basis points today.
In other markets:
- Spot gold is up nearly 6 dollars or 0.34% $1784.37
- Spot silver is up $0.13 or 0.60% at $22.49
- WTI crude oil futures settle at $72.05 and are currently trading lower at $71.71. The high price reached the $73.01. The low price extended to $69.65
- Bitcoin recovered and is trading above the $50,000 level at $50,695.68, but is off it's highest level the day at $51,991
IN the forex market today, the major currencies took their clues from the "risk on" flows. The AUD, CAD and NZD were the strongest of the majors on those risk on flows, with the AUD leading the way. The GBP, EUR and JPY were the weakest. The USD was weaker with declines focused on the the aforementioned commodity currencies (AUD, CAD and NZD). Versus the other currencies, the US dollar was mixed with modest changes (0.17% up to -0.10% lower).
