{"id":114219,"date":"2017-10-06T08:35:32","date_gmt":"2017-10-06T12:35:32","guid":{"rendered":"http:\/\/countingpips.com\/?p=114219"},"modified":"2017-10-06T07:21:20","modified_gmt":"2017-10-06T11:21:20","slug":"house-budget-approval-supports-us-stocks-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/10\/house-budget-approval-supports-us-stocks-rally\/","title":{"rendered":"House budget approval supports US stocks rally"},"content":{"rendered":"
October 6, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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All three main US stock indexes hit new record highs<\/h2>\n<\/div>\n<\/div>\n

US stock market<\/b>\u00a0advanced to new record highs on Thursday after Congress passed a budget resolution. The dollar resumed strengthening: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, rose 0.4% to 93.895.\u00a0Dow Jones\u00a0<\/em>industrial average rose 0.5% to all-time high 22775.39. The\u00a0S&P 500\u00a0<\/em>gained 0.6% settling at fresh record high 2552.07 sixth session in a row led by technology and financial shares up about 1%. The\u00a0Nasdaq\u00a0<\/a>index advanced 0.8% closing at new record high 6585.36.<\/p>\n

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Treasury yields inched higher and Investors\u2019 risk appetite was boosted after House passed a $4.1 trillion budget, which is considered as a first step to enacting US tax code overhaul. President Trump\u2019s tax cut proposal, which was supported by leaders of House and Senate last week, may enhance companies\u2019 earnings as lower tax rates get enacted. More Fed officials voiced their support for continuing rate hikes. Philadelphia Fed President Patrick Harker, a voting member of the rate-setting Federal Open Market Committee, said the Fed would likely raise rates in December. San Francisco Fed President John Williams, nonvoting member, said the central bank should stay the course and raise rates. Further positive data were released: factory orders for August rebounded to 1.2% from a 3.3% drop in July, suggesting a likely acceleration In US GDP growth in fourth quarter as business investment rises. Today at 14:30 CET nonfarm payrolls will be released. A decline from August\u2019s solid 156000 new jobs created is expected due to hurricanes impact.<\/p>\n<\/div>\n<\/div>\n

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European stocks rise on Catalan parliament suspension<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>advanced on Thursday after Madrid suspended a parliamentary session in Catalonia to prevent the region from declaring independence. Both\u00a0euro\u00a0<\/em>and\u00a0British Pound\u00a0<\/em>fell against the dollar. The Stoxx Europe 600 closed 0.2% higher. Germany\u2019s\u00a0DAX 30\u00a0<\/a>closed marginally lower at 12968.05. France\u2019s\u00a0CAC 40<\/em>\u00a0rose 0.3% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>gained 0.5% to 7507.99. Indices opened mixed today.<\/p>\n

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After Catalan President Carles Puigdemont said on Wednesday he\u2019s open to a mediation process but central government has rejected this Spanish Prime Minister Rajoy said Thursday he has asked Puigdemont to not go ahead with plans to declare independence next week. Spain\u2019s constitutional court has ordered that a special session of Catalonia\u2019s parliament planned for next week to be suspended temporarily. The European Central Bank released the minutes showing officials discussed how to scale back ECB’s large bond-buying program at the September policy meeting.<\/p>\n<\/div>\n<\/div>\n

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Asian markets advance<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are higher today ahead of closely watched US nonfarm payroll data.\u00a0Nikkei\u00a0<\/em>ended 0.3% higher at 20690.71 posting 1.6% gain over month as yen\u2019s slide against the dollar resumed. Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is 0.1% higher following a holiday on Thursday. Hang Seng Index is up 29% year to date. Australia\u2019s All Ordinaries Index is up 1% as the Australian dollar extended losses against the greenback.<\/p>\n

\"HK<\/p>\n

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Oil edges lower as tropical storm approaches Gulf of Mexico<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are inching lower today as storm Nate approaches US Gulf of Mexico triggering production and refinery closures. Prices rose yesterday supported by talk of possible OPEC extension of output cut deal to 2018 end as Saudi King Salman visited Moscow. Saudi Arabia made no firm pledge to extend a deal between OPEC, Russia and other producers but said it was \u201cflexible\u201d regarding suggestions to prolong the pact until the end of 2018. Brent for December settlement rose 2.2% to end the session at $57 a barrel on the London-based ICE Futures exchange on Thursday.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets All three main US stock indexes hit new record highs US stock market\u00a0advanced to new record highs on Thursday after Congress passed a budget resolution. The dollar resumed strengthening: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, rose 0.4% […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-114219","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114219","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=114219"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114219\/revisions"}],"predecessor-version":[{"id":114233,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/114219\/revisions\/114233"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=114219"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=114219"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=114219"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}