Investor Confidence Continues to Improve

Business-related news has been quiet overnight. President Trump is returning from his trip to the Middle East, and trade talks appear to be progressing on several fronts. In the absence of negative developments and amid an encouraging tone overall, equity markets continue to rise.

Heading toward the weekend, US index futures are up 0.3% across the board, while in Europe, the Dax, CAC and FTSE are up 0.4%-0.6%. The US 10-year treasury note yield has slipped back to 4.4% following this week’s benign US inflation readings and US Dollar trading is quiet. Commodity action is mixed with Copper down 1.9% and Crude Oil up 0.2%. 

Precious metals are under pressure again today, with Gold and Silver both down about 2.0%. Meanwhile, Cryptocurrencies continue to climb with Bitcoin up 0.6% and Ether up 3.4%. This rotation of capital from defensive to aggressive positioning can be seen as a sign of growing investor confidence and risk appetite. 

Speaking of confidence the only economic data releases of note are US housing starts and US U of Michigan Consumer Sentiment at 10:00 am EDT.

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