US equities closed marginally higher yesterday, settling at fresh record highs as investors continue to focus on the Trump administration’s tax reform agenda. The S&P 500 gained 0.1% as Materials and Real Estate companies lead the index higher.
In currency markets, the US dollar dipped 0.3% to $1.1790 against the euro, but remains more than 2% above its recent low of $1.2050.
The yield on 10-year treasuries traded 1bp higher (prices fell) to 2.31%, having touched 2.36% at one stage intra-day before recovering into the session close.
On the economic data front, US Q2 GDP growth was revised up to an annual rate of 3.1% from the initial reading of 3.0%. US inflation data due to be released today is likely to be a key focus for the session.
European equity markets broadly mirrored moves in the US yesterday. The Euro Stoxx 50 index gained 0.2% and UK equities also settled marginally higher despite Sterling strength.
Sterling gained 0.4% following comments from BoE Chief Economist Andy Haldane’s that policy tightening should be considered good news for UK.
Asia equities traded broadly flat to marginally higher this morning. In Japan, gains for Financials and Technology companies were offset by losses in Utilities and Energy stocks.
source: Goodbody Asset Management