Sunday 08, October 2017 by William Mullally

Dollar grows stronger

US stock-index gains accelerated deeper into new all-time highs (for the fourth day in a row) on Thursday afternoon after the House of Representatives passed a budget resolution on Thursday which paves the way for tax reforms. The Dow Jones Industrial Average gained 114.16 points, or 0.50 per cent, to 22,775.80, while the S&P500 rallied 13.75 points, or 0.54 per cent. The Nasdaq is now up 22.3 per cent for the year as a whole while the S&P 500 is 15 per cent higher.

US stock-index gains accelerated deeper into new all-time highs (for the fourth day in a row) on Thursday afternoon after the House of Representatives passed a budget resolution on Thursday which paves the way for tax reforms. The Dow Jones Industrial Average gained 114.16 points, or 0.50 per cent, to 22,775.80, while the S&P500 rallied 13.75 points, or 0.54 per cent. The Nasdaq is now up 22.3 per cent for the year as a whole while the S&P 500 is 15 per cent higher.

The dollar grew stronger over the news and is almost 3 per cent above the 2017 lows seen in early September. Treasury yields rose 1-2bp today, as economic data beat expectations on the upside, risk assets strengthened further, and Fed officials made upbeat comments. The US 10yr yield increased 2.3bps to 2.35 and the US 2yr yield rose 1.6bps to 1.4873 per cent.

In overnight trading in Asia, many markets remain closed but the few markets which are open are all higher. Hong Kong's benchmark index briefly reached its best level in a decade and Japan's Nikkei moved closer to levels last seen in 1996. In Australia, the S&P/ASX 200 is up 1.04 per cent, helped by gains in commodity prices.

 

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