WTI Stabilises Near Multi-Year Highs

The Dow Jones had a flat session overnight but is holding very close to record highs, currently sitting at 25,283. It was a relatively quiet session with the major indices having tight trading ranges. Investors are anticipating fourth quarter earnings which will start being released in a week or so and in particular, investors will be trying to gauge how the newly passed tax cuts will affect individual companies. The ASX 200 also had a relatively uneventful session yesterday, closing just 0.1% higher.

It was also quiet for commodities as WTI oil has stabilised around US$61.90 per barrel and iron ore holds near US$75 per tonne. Gold prices were little changed overnight, representing a pause from the 30-day bull run that has seen prices rise US$80 per ounce.

US 10-year bond yields are holding just below 2.5% after rising 10 basis points in the last month. The expectation of further interest rate hikes will place further upward pressure on bond yields, particularly for shorter term bonds.

Data Releases:

-    No Significant Data

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This article was written by William O'Loughlin - Investment Analyst, Rivkin Securities Pty Ltd. Enquiries can be made via william.oloughlin@rivkin.com.au or by phoning +612 8302 3633.

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This article contains information about foreign exchange contracts, which are considered complex financial products. Please click here to read ASIC's foreign exchange trading article before considering an investment in foreign exchange contracts. 

This article contains information about CFDs, which are considered complex financial products. Please click here to read ASIC's "Thinking of trading contracts for difference?" document before considering an investment in CFDs.
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