Markets were fairly stable amid little noteworthy new flow and a mixed bag of US economic data. The S&P500 closed unchanged, while the USD and bond yields are slightly lower.

The multi-month rally in equity markets stalled as the stalemate on US fiscal stimulus continued. The S&P500 is currently down 0.2%, the AUD and NZD are lower, and bond yields are higher.

The multi-month rally equity markets resumed overnight, the S&P500 up 1.4% and near its record high. The US dollar fell slightly and bond yields rose slightly. There was little fresh news of note, apart from stronger US inflation data.

Equity markets swung from moderate gains to losses, the S&P500 making a fresh six-month high before closing down 0.8%. Bond yields and the US dollar rose, helped by stronger PPI inflation data. President Trump’s consideration of capital gains tax cuts initially helped sentiment, later dampened by news of stalemate in the US fiscal stimulus negotiations.

There was little fresh news to drive markets. Expectations of further US fiscal stimulus supported bond yields, but US sanctions on Chinese tech firms weighed on equities and risky currencies.

The news was mixed, leaving markets with mixed performances. Negatives included US sanctions on some Chinese technology firms, and failure to agree on the next US fiscal stimulus package. Against that, the monthly US jobs report was stronger than expected. The S&P500 closed up 0.1% on the day, but the NASDAQ100 fell 1.1%, the US dollar rose, and bond yields rose.

Sentiment was moderately upbeat on optimism a US fiscal stimulus package would be agreed this week. The S&P500 is up 0.6% on the day, the NASDAQ100 at a fresh record high, and the AUD and NZD performed well.

Sentiment was upbeat on optimism that Republicans and Democrats are approaching agreement this week on a US fiscal stimulus package. There was also promising news from Novavax on a COVID-19 vaccine. US data was mixed, with slowing job growth but rising services. The S&P500 is up 0.6% on the day, the NASDAQ100 is at a fresh record high, bond yields are higher, and the US dollar is lower.

Sentiment was cautious, as Republicans and Democrats failed to agree on a US fiscal stimulus package. The S&P500 is up 0.4% on the day, while bond yields and the US dollar are lower.

US equities remained upbeat, the S&P500 up 0.7% to a fresh five-month high, and the NASDAQ100 to a record high. Bond yields and commodities also rose, but so too did the defensive US dollar. US manufacturing data beat expectations.