US stocks close at new highs - 12.7.2016

US stocks closed at record high on Monday as market sentiment was boosted by Friday’s strong jobs report. The dollar strengthened, helped by significantly weaker yen after Prime Minister Shinzo Abe announced new stimulus measures to support Japanese economy. According to the live dollar index data the ICE US Dollar Index, a measure of the dollar’s value against a basket of six major currencies, rose 0.2% to 96.516. The Dow Jones industrial average rose 0.4% settling at 18226.93 led by a 1.5% in Boeing. The S&P 500 gained 0.3% ending at 2137.16 led by technology and industrial stocks. Utilities and telecom stocks underperformed. The Nasdaq Composite Index added 0.6% closing at 4988.64 after trading above the 5000 level during the day for the first time this year. The strong nonfarm payroll report which showed 287000 jobs were created in June instead of expected 170000 assured market participants US economy isn’t slowing down as feared after weak May report. Second earning season is starting and it is widely expected corporate earnings will continue declining. Today at 12:00 CET June Small Business Optimism Index by National Federation of Independent Business will be published. The tentative outlook is positive. At 16:00 CET May Wholesale Inventories, Wholesale Trade Sales, and Job Openings and Labor Turnover Survey Results will be published. The tentative outlook is positive. At 23:30 CET Minneapolis Fed President Neel Kashkari speaks on economy in Marquette, Michigan.

European stocks recorded third session of gains on Monday on expectations of more monetary stimulus by global central banks to prop economies after added uncertainties caused by Brexit vote. The euro weakened against the dollar while Pound edged higher even as the Bank of England is expected to cut interest rates at its Thursday meeting. The Stoxx Europe 600 gained 1.6% led by mining and industrial stocks. Germany’s DAX 30 index rallied 2.1% to 9833.41 helped by 6.4% jump in Thyssenkrupp shares on news the German industrial conglomerate was in talks with India's Tata Steel about a consolidation of European steel mills suffering from overcapacity, weak demand and cheap imports. France’s CAC 40 index rose 1.8% and the UK’s FTSE 100 index closed 1.4% higher. At Eurogroup meeting of euro-zone finance ministers France’s finance minister on Monday expressed his support for the Italian government’s efforts to aid its banking sector. Today finance chiefs will be discussing possible penalties to be imposed on Portugal and Spain for failure of the countries to lower their budget deficits. No important economic data are expected today in euro-zone.

Asian stocks are rising today to two and half month highs: Hong Kong’s Hang Seng Index is up 1% with Shanghai Composite Index 1.6% higher. Australia’s All Ordinaries Index is up 0.3%. Nikkei rallied 2.46% today as yen slid against the dollar and investors anticipated Shinzo Abe’s government may propose $100 billion in fiscal spending to boost the economy. Exporters overperformed, Toyota gained 2.7% and Honda added 2.6%.

Oil futures prices are edging higher today as Iraq briefly suspended tanker loading at two export terminals after a pipeline leak and Nigerian rebels claimed they had attacked oil facilities. Prices fell yesterday to two month lows on reports OPEC’s June crude production rose 300000 barrels a day from a month earlier to 32.73 million barrels a day, the highest level since August 2008. September Brent crude lost 1.1% settling at $46.25 a barrel on London’s ICE Futures exchange on Monday.

Gold is steady today after spot gold fell 0.8% on Monday.