S&P 500 closes at record high as growth stocks rise

Tuesday, May 13, 2014

US benchmark indices closed at record highs yesterday supported higher by a rally in growth and technology stocks. The S&P 500 closed towards 1,896.65 adding 0.97% throughout the session as volatility dropped towards a four month low with the VIX pulling back to 12.13. The DJIA rallied higher for the fourth consecutive session, briefly topping 16,700 before posting a close at 16,695.47. 

The bullish sentiment on Wall Street carried over to Asian trading with Japanese equities rallying on yen weakness. After strengthening towards 101.50 against the dollar the yen has softened towards the 50 day MA currently at 102.39, supporting benchmark stock indices higher with the advance led by carmakers as Nissan expected profits to rise to their highest level since 2008.

Chinese stocks were relatively subdued overnight as investors held out for key economic data. Both industrial production and retail sales disappointed in April, coming in at 8.7% and 11.9% y/y respectively against expectations of 8.9% and 12.2%. Both the CSI 300 and Shanghai Composite corrected lower, erasing some of Monday’s gains. Indian stocks rose to a record level while the rupee also strengthened as exit polls indicated a win for Narendra Modi. The S&P BSE Sensex added over 2% while the INR pulled back towards 59.5925 against the dollar.

Three month LME nickel prices rallied for a fifth straight session on Monday, reaching a 27 month high with prices early on this morning testing levels towards $21,625/tonne as supply concerns continue to dominate market sentiment. Prices have rallied 19% since the start of the month after breaking of consolidation around $18,500/tonne with the recent impulsive rally adding 15% in the last four sessions alone.

S&P 500 rallies to a record high as VIX drops

SPX Index SP 500 Index SPVIX 2014 05 13 07 20 09

Weaker JPY supports Japanese stocks higher

JPY Curncy Japanese Yen Spot 2014 05 13 07 54 34

Disappointing industrial production and retail sales depress Chinese stocks

CHVAIOY Index China Value Added 2014 05 13 07 37 48

Nickel surges higher on supply concerns

LMNIDS03 Comdty LME NICKEL 3 2014 05 13 07 48 49

Events for today

0001

UK

Apr

BRC Retail Sales

0630

CN

Apr

Retail Sales & Industrial Prod.

0700

DE

Apr

Wholesale Price

1000

DE

May

ZEW Economic Survey

1330

US

Apr

Retail Sales

1330

US

Apr

Import/Export Price

1500

US

Mar

Business Inventories

 

 

Topics: Equities, JPY, LME, Nickel
More from: Kash Kamal