S&P/ASX 200 set to break 7000-point level

IG MARKETS SPONSORED POST

SPI futures closed up 17 points, or 0.2 per cent, at 6947 earlier this morning. If replicated by the physical S&P/ASX 200 index, that should see it surpass the 7000-point level for the first time ever.

• AUD flat at 69 US cents
• On Wall St near 3.30pm: Dow +0.3% S&P 500 +0.2% Nasdaq 0.1%
• In New York: BHP -0.5% Rio -0.6% Atlassian +0.6%
• In Europe: Stoxx 50 -0.2% FTSE +0.3% CAC -0.1% DAX -0.2%
• Nikkei 225 futures +0.1% Hang Seng futures +0.1%
• Spot gold +0.5% to $US1554.41/oz at 1.23pm New York
• Brent crude -0.6% to $US64.08 a barrel
• US oil -0.6% to $US57.91 a barrel
• Iron ore -0.6% to $US96.44 a tonne
• Dalian iron ore +0.2% to 668 yuan
• LME aluminium -0.4% to $US1801 a tonne
• LME copper -0.2% to $US6287 a tonne
• 2-year yield: US 1.56% Australia 0.80%
• 5-year yield: US 1.60% Australia 0.85%
• 10-year yield: US 1.78% Australia 1.21% Germany -0.20%
• 10-year US/Australia yield gap near 7.30am AEDT: 57 basis points

IG MARKETS SPONSORED POST

Investors spent Wednesday preparing for the details of the “phase one” US and China trade deal. Initial reactions, judging by the moves on Wall Street, appear to be slightly mixed, if not marginally positive. After an initial sell-off after the deal’s publication, the S&P 500 ended the day 0.2 per cent higher and the Dow closed at a record.

Traders were also busy assessing corporate results overnight on Wall Street. The big financial stocks continued to be the focus. Goldman Sachs reported and missed estimates, largely due to ongoing legal costs associated with the 1MBD scandal. Bank of America also underwhelmed, after it reported a drop in net interest income. But Target was perhaps the major disappointment. The retailer cuts its sales outlook, citing weak consumer activity during the Christmas sales period, with the result stoking some concern about the state of US consumption.

Wall Street’s positive end to its session is setting up the S&P/ASX 200 for a solid start today. SPI Futures are implying the index ought to open 17 points higher this morning. The move will likely see the benchmark index break through the 7000 mark which the market fell just short of yesterday. Calls of a touch of exuberance in stock markets are growing louder as valuations domestically and abroad become increasingly rich, raising concerns of a looming correction.