U.S. Indexes continued to advance higher on Wednesday as tailwinds from Tuesday around easing AI disruption fears extended. The Nasdaq outperformed with tech and financials leading the gains. Tech was buoyed by gains in software, recently battered by AI disruption, while gains in NVIDIA (NVDA) also supported it ahead of earnings after-hours. The gains in equities supported overall risk sentiment, with both the Australian and New Zeal Dollar outperforming, but hot Australian CPI led to clear AUD outperformance versus other cyclical currencies. Havens generally lagged with the Yen, Dollar and Franc underperforming. The Japanese Yen was sold after the Japanese government nominated two reflationist academics to join the Bank of Japan, reaffirming Takaichi’s pro-stimulus stance, which led to a steepening of the JGB curve. The pressure in long-end JGBs and positive risk sentiment weighed on Treasuries, while the 2-year FRN and 5-year auctions were soft. Crude prices were relatively flat as eyes turn to US/Iran meetings on Thursday, while OPEC sources suggested delegates will be considering a resumption of output hikes in April. In the US, the EIA Inventory Data saw a chunky build, in line with the private inventory report last night. Gold and Silver saw further gains while Bitcoin staged a recovery, supporting crypto-exposed stocks. Lithium as well as related stocks, gained following Zimbabwe’s suspension of all raw mineral and lithium exports immediately. Fed Member Barkin said there was clear sense that the job market has loosened, and hard to calibrate what is going on with labour supply. Barkin added that inflation data has been consistently above target, and he is hopeful of it retreating to 2%, but wants data to show this clearly. Barkin echoed familiar rhetoric that monetary policy is currently well-positioned for risks. Fed Member Schmid spoke on the balance sheet, noting the main focus of the Fed balance sheet debate is about the size of reserves. However, he is concerned about the duration of it. He said it will take years for the Fed to run off its mortgage bond holdings, adding they will never return to a Fed balance sheet size seen before the financial crisis. He acknowledged that the Fed’s T-bill reserve management has been relatively modest. On the economy, he said the jobs market is in a pretty good place but has work to do on the inflation side. Meanwhile, Collins said the Fed is quite likely to hold current rates for some time, policy is mildly restrictive and may be close to neutral. Collins added that the recent job data has been promising, and while the job market softened last year, it was not soft. On the inflationary footing, the Boston Fed President wants more confidence that it is easing, and her baseline view is that inflation will wane later this year. Collins concluded the latest tariff news has not changed the outlook much. Elsewhere, Oil closed lower by 0.3% while Gold ended Wednesday’s session with a 0.8% gain.
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For anyone following my Platinum Service it was flat yesterday and is still ahead by 5482 points for February, after ending January with a gain of 4757 points, having closed December with a gain of 2599 points, after ending the month of November with a gain of 4542 points, after ending October with a nice gain of 5110 points after closing September with a gain of 3774 points while ending August with a gain of 3362 points after closing July with a gain of 3753 points after closing June with a gain of 3530 points, having closed May with a gain of 3606 points, after closing April with a gain of 7685 points after closing March with a gain of 2254 points while closing February with a gain of 4180 points. January ended with a gain of 2768 points while 1997 points were gained in December. October ended with a gain of 2179 points, after closing September with a gain of 4402 points, following a loss of 301 points in August. July gained 1908 points while June saw a gain of 2074 points. The Platinum Service made a record 9619 points in October 2022. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 2300 points. I have a YouTube Channel which contains recent interviews I have given This can be viewed by clicking HERE Please subscribe to this for new interview notification
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