US markets pushed higher overnight, with every major index rising overnight. Despite this, technology stocks continued to underperform, with the tech-heavy NASDAQ index again the weakest of the three major indices. It was a big night for commodities overnight, with gold breaking through the $1,800 USD/ounce level, while iron ore rose through the milestone $200 USD/tonne level; copper and aluminium are also trading at multi-year highs.
Jobs data also showed a lot of new jobs created for the month of April, with new US jobless claims falling for the fourth consecutive week to a post-virus low. Stocks finished near their highs overnight, with the S&P 500 finishing right on the key 4,200 level.
Many investors are worried about adage of selling in May, with the concerns exacerbated by the strong bullish run that markets have enjoyed. May is sometimes a weaker month, although that is not always the case. We will have to continue to monitor technical signals for signs of a pullback and be quick in adjusting positions if key levels of support break; until that happens, we have to assume that the upwards movement will continue.
Australian shares fell off late yesterday with our market failing to propel through the 7,100 resistance level. The futures have us opening higher today but below 7,100, so it will be interesting to see if we rise to test that level during the session. Strong commodities prices should help strengthen our market today but some poorly received earnings results from ANZ and NAB have held our market back; Macquarie is the last of the major banks to report (today), so it will be interesting to see how that is received.
The XJO is expected to edge higher on open this morning following a strong night in the U.S. The volatility we experienced the past couple of days puts us back at 7100 resistance level, which we should go on to test once again today. U.S futures have edged into the red this morning and if they remain so, it is likely we hold 7100 going into the weekend.
US shares pushed higher overnight on the back of strong economic data. Shares finished at the highs of the day, with even the recently weak technology stocks managing to reverse off their overnight lows to finish in the green. US jobless claims data came in stronger than expected, as did wages data.
Tonight we will get the full US employment data, with unemployment expected to fall to 5.8%. Most US markets are now sitting quite close to their all-time highs, with only the technology stocks holding the NASDAQ index still some distance below its all-time high. Every major US sector group closed higher overnight, with Financials and Consumer Staples the strongest performers. Consumer Discretionary and Energy stocks lagged a bit overnight, but still closed in the green.