The S&P 500 edged another 0.1% higher, Energy stocks fell and oil prices pared gains following disappointing inventory data and the US dollar traded marginally lower against a basket of peers.
Energy stocks were among the worst performers yesterday as oil prices fell from intra-day highs after the EIA reported a fourth successive weekly drop in crude stocks, but said gasoline inventories had risen by more than expected.
Turning to fixed income markets, the yield on 10-year bonds rose 4bps to 2.34% (bond prices fell) as speculation continued on who might take the helm of the Federal Reserve when Janet Yellen’s term ends in February next year.
The positive mood in equity markets was also evident in Europe. The Euro Stoxx 50 index gained 0.3% and the German DAX rose 0.4%, settling at a record high.
The yield on Spanish bonds rose 7bps yesterday (bond prices fell) ahead of today’s deadline for Catalan President Puigdemont to formally respond on whether independence was declared or not.
Asian equities fell from intra-day highs overnight following Chinese economic data. Japanese stocks finished a modest 0.3% stronger while Chinese equities fell 0.5%.
China reported that its economy expanded 6.8% last quarter, with retail sales and industrial output accelerating in September.