US stock markets have picked up where they left off Friday with the Dow breaking out to a new all-time high, the S&P 500 breaking through 2,500 and the NASDAQ 100 clearing the 6,000 level. Overseas are also rising with the FTSE and Dax up 0.3% while the Nikkei gained 0.5% and the Hang Seno popped 1.25% overnight.
Positive sentiment has been boosted over the weekend that some of the political risks out there particularly surrounding the US both internally and internationally may be easing. Following on from President Trump’s budget deal with Democrats and talks on immigration, there has been chatter that the US could be talked into staying in the Paris Climate Accord under the right deal. President Trump speaks to the UN General Assembly tomorrow and is expected to be in New York for four days this week for meetings with other world leaders.
Sterling has softened a bit but today’s overdue correction remains light in comparison with the gains made Thursday and Friday last week. GBP pairs cold be active again today with Bank of England Governor Carney speaking to the IMF, a formal opportunity to comment on changing policy. Speaking of which, Bank of Canada Deputy governor Lane is speaking today which could spark activity in CAD with traders looking for hints as to whether the BoC is considering another Canadian rate hike this year or not.
Also today, we may see traders positioning for Wednesday’s FOMC meeting and the Bank of Japan meeting Wednesday night. JPY continues to weaken on a combination of other central banks moving in a more hawkish direction and capital coming out of defensive havens.
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Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.
