Propelled mainly by the unexpected key rate cut in China last week and rumours that the People's Bank of China would take further accommodating measures, the Dow Jones Industrial Average and the S&P 500 rose to new highs yesterday, ending the session up 0.04% and 0.29%, respectively. Following the pullback of equity markets in October, these indices have risen by 10.4% and 11.1%. The NASDAQ also joined the party, having risen by 0.89% at the close. Since the rate cut in China, the yuan has fallen by close to 200 bps against the USD, reaching its lowest level since September. As for the CAD, it is currently trading this morning at the same level it closed yesterday. In terms of economic indicators, this morning we are awaiting GDP figures (Q3 2014) and the CB Consumer Confidence Index (November) from the U.S., and Retail Sales numbers (September) from Canada. Have a great day!
Rana Karim
- Range of the day: 1.1210 - 1.1315