June 28 New York
The DJIA soared by 143.95 points to 21454.61 while the S&P 500 Index rose by 21.31 points to 2440.69. The Nasdaq Composite Index gained by 87.791 points to 6234.414 while the Nasdaq 100 Index added by 81.434 points to 5753.032. The yield on 10-year Treasury notes rose by 2.3 basis points to 2.228 percent. The Yen strengthened against the U.S. dollar a bit to 112.30. WTI futures advanced 1.1 percent to settle at $44.74 after climbing 4 percent in the previous four sessions. Prices gained as government data showed a drop in U.S. gasoline supplies that have remained stubbornly high at the start of the summer driving season. Central banks set the tone on global financial markets Wednesday, with the latest comments from policy officials sparking a risk-on mood that sent U.S. stocks to the biggest gain in two months and roiled currencies from the pound to the loonie. The S&P 500 Index rebounded from the biggest selloff in six weeks, with bank shares rising to March highs Treasury 10-year note yields climbed above 2.22 percent. Technology firms snapped back to halt a selloff that dented confidence in the year’s biggest gainers. Small caps led the way with a rally that topped 1.5 percent and took the Russell 2000 Index within a point of an all-time high. The optimistic reading of the latest central bank proclamations – economies around the globe can withstand tighter financial conditions as growth picks up – changed the tone in financial markets less than a day after a host of events from an IMF cut to its U.S. growth forecast, a fresh blow to the Republican agenda in Washington and a global cyberattack had ushered in note of caution. WTI crude futures rose by 50 cents to $44.74 a barrel , rebounded mildly from $43.01 a barrel on June 23. The fall in crude price can largely be blamed on higher crude output in the U.S., coupled with concernes that the global crude market is heading towards oversupply in the medium-term perspectives. U.S. crude production rose 2.7 percent on year to year basis in May, after posting 2.4 percent growth in April. Today, U.S. produces more than 15 million barrels a day. Many economists pay attention to when the number of u.S. rigs in operation will begin to decline. In the U.S. 758 crude rigs were in operation as of June 23, the highest rig count so far this year. Global crude oil demand is expected to be 98.47 million barrel a day in 2017, being 1.6 percent increase on year to year basis from 2016 (Mitsubishi-UFJ Morgan Stanley). Crude oil demand in emerging market countries is growing at a sound pace. It seems unlikely that the price in crude oil will rise to be over $60 a barrel in this year.
