US markets surged on much better-than-expected Retail Sales data in trading yesterday. The major indices all made strong gains on the day and treasury yields and the dollar gained back recent lost ground as the data pointed to a ‘soft landing’ for the US economy and pushed expectations for just a 25-basis point cut from the Fed in September.
Oil prices also pushed higher on the positive data as did Gold, which remains in striking distance of record levels still.
The macroeconomic event calendar is more muted in the final trading day of the week although there will be the potential for moves in the antipodean currencies early in the day with both central bank governors speaking, and we round out a week of big UK data prints once London opens.
| Market | Change | Close |
| Dow | +1.39% | 40,563 |
| S&P | +1.61% | 5,543 |
| Nasdaq | +2.34% | 17,594 |
| USD | +0.42% | 103.03 |
| US Treasury – 2 Year | +15.9 bps | 4.106% |
| US Treasury – 10 Year | +10.6 bps | 3.928% |
| Oil – Brent | +1.6% | $81.04 |
| Oil – WTI | +1.53% | $78.16 |
| Gold | +0.3% | $2,454 |
Today’s Events (AEST):
Asian Session
- 9.30 am – Australia – RBA Governor Michele Bullock Speaks
- 12.30 pm – New Zealand – RBNZ Governor Adrian Orr Speaks
European Session
- 4.00 pm – UK – Retail Sales Data
US Session
- 10.30 pm – US – Building Permits Data
- 12.00 am – US – Preliminary University of Michigan Consumer Sentiment and Inflation Expectations Data
