Summary:
- US500 makes another all-time high; DE30 trades above 13000
- Bitcoin continues to rally with another record peak; other crypto markets joining in
- US data weighs on the greenback
- Oil looking to end good week near its highs
The US500 looks set to post more record highs today with the market on course for an all-time closing peak and already has posted an intra-day record of 2555. The bull market in US stocks has shown little sign of stopping in recent sessions with a slow and steady grind higher. The DE30 also recorded a record peak today in smashing through 13000 to trade into uncharted territory.
Bitcoin has rallied strongly this week with the price rising in excess of $1000 and surging through the $5500 level to trade at a new all-time high (view video here). Bullish expectations have already turned into other digital currencies where Ethereum and Litecoin are among top beneficiaries.
The biggest economic release of the day has seen a quick swoon in the US dollar with the greenback falling after both the US consumer price index (CPI) and US retail sales figures came in worse than expected. The miss in the inflation readings are of particular concern with the Fed’s view that it is transitory looking increasingly untrue.
Elsewhere, the University of Michigan consumer sentiment reading rose to 101.1 – the highest level since 2004 – in what is further evidence of heady levels of optimism surrounding the US economy at present. Against a forecast of 95.1, which would have been in line with the prior, the reading is undoubtedly positive, but there hasn’t been a significant USD positive reaction in the markets probably due to the accompanying fall in inflation expectations.
Oil prices have had a successful week as of yet and they are expected to end up with a notable increase (the biggest weekly gain since mid-September) following three fundamental reports released by OPEC, EIA and IEA earlier this week. All of them spelt out quite the upbeat outlook for the commodity prices, however the devil is in the details as usual.