Shares surged for a second day, gold fell, as did silver, oil bounced back and bond yields rose as investors reacted positively to the news coming out of Japan, and the slide in the value of the yen.
The Dow and the S&P 500 index both closed at fresh all-time highs this morning, supported by a rally in energy shares and those stronger-than-expected earnings from Alcoa on Monday.
The news from wall Street saw a 30 point plus bounce in the ASX 200 futures market overnight, while the Aussie dollar held over 76 US cents.
The Dow added 120.74 points, or 0.7%, to close at 18,347.67, marking its first record in 14 months when it finished at 18,312.39 on May 19, 2015. The blue-chip gauge briefly hit an intraday peak of 18,371.95, according to FactSet data.
The S&P 500 set a fresh record Tuesday after closing on at a record for the first time in nearly 14 months on Monday.
The index rose 14.98 points, or 0.7%, to close at 2,152.14. Energy shares led the gains, advancing 2.3%, as US oil futures jumped more than 4%.
And the Nasdaq Composite added 34.18 points, or 0.7%, to end at 5,022.82, the index’s first close in positive territory for 2016 with a 0.3% gain.
In contrast to oil, gold and sliver futures fell as riskier investments came back into fashion. That was underlined by an 8 point rise in the US 10 year bond yield to 1.51%.
Comex silver futures turned lower with the September contract losing 13 cents or 0.7% to $US20.17 an ounce.
That was after the metal finished Monday at $US20.304, the highest since August 2014, according to FactSet.
Comex gold futures meanwhile lost ground fora fourth successive trading session.
August gold slid $US21.30, or 1.6%, to settle at $US1,335.30 an ounce.
And Comex September copper added 6.6 cents, or 3.1%, to $US2.213 a pound ahead of the release of Chinese trade data for June later today which is a traditional influence on the price of the metal.
This morning watch the Japanese market and the value of the yen – they are the drivers of much of the rebound in market sentiment after the big win on Sunday by prime Minister Abe’s government in the country’s upper house elections.
The Abe government will today downgrade the country’s 2016-17 GDP estimate, which will underline the market’s belief that another big stimulus package is being readied by the government and/or the Bank of Japan.
