Australia, New Zealand shares climb after Yellen's rate remarks


Australia, New Zealand shares climb after Yellen's rate remarks

-The S&P 500 index advanced 0.7 percent as of 4 NY, 0.4 percent short of its closing record.

The S&P/ASX 200 index, recovering Wednesday's losses, rose 1.1 percent, or 62.97 points, to 5,736.80. Plus, we revisit the Trump administration's economic plan of growing the economy at 3 percent and if the plan is feasible.

The biggest banks by market value, Commonwealth Bank of Australia and Westpac Banking Corp, were among the top gainers on the benchmark by weight, up 1.9 percent and 0.5 percent respectively.

The Dow Jones Industrial Average closed up 123.07 points, or 0.6%, at 21,532.14, its first new closing high since June 19.

Oil stumbled after settling higher overnight.

The Fed chair illustrated an economy that is growing steadily, adding jobs, benefiting from steady household consumption and strengthening on increased business investment. This had offset higher levels of production noted in an International Energy Agency report.

The net impact of Chair Yellen's statement ahead of this testimony has been one of U.S. Dollar weakness, with the Greenback plunging down to test ten-month lows; and this came after resistance showed at the key Fibonacci level of 95.86 on DXY yesterday.

Keep an eye on China's trade data (no set time), which could be a catalyst for the AUD and commodity players, but we have seen a nice trend in real imports and exports of late and we have reason to feel this changes. The Aussie dollar last traded at $0.7743, above the $0.76 handle seen earlier this week. Of course, we can't forget earnings too and the market is clearly telling us that they expect the consensus of 7% Q2 EPS growth for the S&P 500 corporations to perhaps be closer to 9-10%.

EUR/USD dipped by 0.44% to $1.1415 while EUR/GBP fell 0.82% to £0.8853. Meanwhile, optical lens supplier Largan Precision reported a fall in quarterly net income, according to local media.

Wall Street rallied after Fed Chairwoman Janet Yellen's testimony to Congress this week as she seemed to open the door for such a pause, by acknowledging that a recent decline in inflation further below the central bank's 2% target may not, in fact, be as fleeting as policymakers had hoped.

-The 10-year U.S. Treasury yield dropped four basis points to 2.32 percent. The gauge erased the loss and was trading less than 0.1% higher as of 9:30 a.m. ET.



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