Oil is on the rise again this morning making a new 52 week high. WTI oil is trading higher by $1.15 to $111.45 a barrel. The stock market seems to love it as the S&P 500 e-mini futures(ES M1) are trading higher again this morning by 6.25 points to $1335.00 per contract. Who could have ever guessed that high oil would boost the stock market indexes on a daily basis?
Improving Economic Outlook Boosts Euro, British Pound
Stocks Extend Gains boosted by Strong Global Outlook
This week the EUR USD penetrated the 1.31 price level for the first time since May. The primary driving forces behind this move were the better outlook for the Euro Zone economy and the weak outlook for the U.S. economy. The data out of Europe may have brought the European Central Bank closer to a rate hike than the Fed.
U.S. stock futures are called higher this morning as investors look forward to a positive earnings season. Late yesterday Alcoa kicked off earnings season by reporting a $136 million profit on stronger-than-anticipated 22% revenue growth. Shares climbed after the report helping to drive the Dow higher.
Improved Outlook for Earnings Boosts U.S. Equities
Stocks Fall on Economic Outlook, Disappointing Earnings
Improved Global Growth Outlook Spurs New Zealand Dollar Rally
The NZD USD continued to mount a strong comeback rally following the formation of the .6572 closing price reversal bottom earlier in the week. The rally has already exceeded expectations, which is a sign of higher markets to come. The chart pattern suggests that a double-bottom is forming at .6560 to .6572 which projects a rally to .7238. This move may take some time to form.
U.S. Dollar Rallies; Boosted by Risk Aversion, Weak U.S. Employment Outlook
Thin trading conditions ahead of the U.S. Non-Farm Payrolls Report on Friday and less than stellar economic news from the Euro Zone helped to weaken the Euro on Thursday. The lack of fresh news from the Euro Zone regarding debt issues is encouraging investors to return their focus to the basic fundamentals.