Indices Pause To Digest Recent Gains, New High For Gold

Yesterday’s rally, which saw US indices gain 1.25% to 2.50%, continued through Asia Pacific trading overnight but has stalled this morning. In Europe, the Dax, FTSE and CAC are down 0.6%-0.8%, while US index futures are mixed between flat for Dow futures and a 0.2% dip for NASDAQ futures. Overall, it appears that some equity traders may be taking profits before the weekend.

Currency markets have been quite active. The Japanese Yen is down 0.6% after the Bank of Japan held rates steady and did not commit to any further increases saying it is “data dependent”. The British Pound is up another 0.3% on a better than expected UK retail sales report (2.5% vs street 1.4%). Meanwhile, alternative currencies are rallying again. Gold is up 1.00% at a new all-time high near $2,640, while Silver is up 0.8% and Ether is up 3.5%. Commodity action is mixed with Copper up 0.4% and US Crude Oil down 0.4%.   

Canadian retail sales also came in better than expected (0.9% vs street 0.6%), while Canadian industrial prices (-0.8% vs street -0.3%), and Canadian raw material prices (-3.1% vs street -2.0%) fell faster than anticipated.

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