The US dollar weakened in overnight trading as markets appeared to ignore increasing infection rates and Sino/US tensions. Surprisingly strong oil prices lifted the Norwegian kroner and Canadian dollar. Large tech stocks garnered support, pushing the Nasdaq 100 to a new record closing high, but gold also rose to break through US $1,800. Cryptocurrencies shook off recent lethargy, and Ripple rose more than 10% amid a broad rally.
US Covid-19 infections topped the 3 million mark as California reported its highest daily count of new infections. Amazon hit a new high water mark above $3,080 per share, and Apple rose more than 2%.The strength in stocks indicates not even a pandemic can “fight the Fed”, and momentum continues its dominance of other investing styles. European investors were less enthusiastic and continental bourses fell by around 1%.
US crude oil inventories surprised analysts with a 5.7 million build last week. However crude oil prices drifted higher despite the evidence of demand destruction. The Canadian and Norwegian currencies benefit from their respective oil and gas industries, and energy stocks could feature in Asia Pacific trading today.
Gold stocks are also in focus after spot prices climbed to their highest level since 2011. The move over $1,800 has some traders look for a test of the all-time high near $1,920. Regional futures indicate positive starts for share trading, and expectations that stocks in China will continue their recent government inspired rally.
Cryptocurrencies roared back to life after an unusual bout of lower volatility. Ripple and Stella Lumens were notable gainers. CMC’s climbed by more than 5%.