SamTrader1
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Equities
In Asia, markets closed mostly higher, with little reaction to China’s interest rate hike on Tuesday. The Shanghai Composite rallied 1.1%, reopening after a holiday. The Hang Send rose .6%, and the ASX 200 rose .3%. The Nikkei slipped .3%, even as the yen continued to slide.
European markets managed to scale the proverbial wall of worry, as the FTSE and DAX both climbed .6% and the CAC40 rose .2%. Late in the day, Portugal requested bailout funds from the EU, joining the ranks of Greece and Ireland.
US markets rose moderately, with the Dow closing up 33 points to 12427, its highest close since June 2008. The Nasdaq gained .3%, and the S&P added .2%.
Dow Closes at New High for the Year
Fertilizer manufacturer, Monsanto, slid 5.7% on weak revenue, even though earnings beat estimates. Cisco shares jumped 4.9%, as investors responded to a CEO memo acknowledging a loss of accountability in the company. Broadcom shares rallied 3.9% following an analyst upgrade, and AMD shares surged 4% on continued strength in the semoconductor sector.
American Superconductor, a wind-turbine company, plunged 42% after cutting revenue and earnings estimates.
Treasuries and Commodities
10-year notes declined 16/32 to yield 3.54% and 30-year notes slumped 1 11/32 pushing the yield up to 4.58%.
The energy sector once again ended mixed, as US crude rose .35 to 108.69, while natural gas fell 2%. Gasoline futures closed down .5%.
Metals rallied, with copper leading the gains. The industrial metal bounced 2.6%, while gold rose .5% to 1460.40 and silver gained 1% to 39.56.
Cotton jumped 3.5% while sugar skidded 3%.
Currencies
The dollar declined against most major currencies, with several pairs breaking out to multi-year highs. The Euro rallied .8% to 1.4339, its highest level since January 2010. The Australian dollar surged 1.1% to 1.0438 after hitting a new record high of 1.0451. The Canadian dollar rallied .5% to .9590, also a mutli-year high.
The yen extended its slide, easing .3% to 85.40.
Economic Outlook
Mortgage applications dropped 2% over the past week. Refinancing applications led the decline, dropping 6.2%.
Congress continues to scramble for a budget deal before the government needs to shut down on Friday.
The ECB is expected to raise rates on Thursday. The Bank of England will also announce its rate decision, but is not expected to raise rates yet.
Thursday’s economic reports will include weekly jobless claims, Consumer Credit, and Money Supply.
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