Yesterday saw the U.S. stock market, as measured by the benchmark S&P 500 Index, close at the new all-time high price of 3014.30. However, analysts tend to remain unconvinced of the health of this bull market. The Index’s rise was barely up on the previous day’s close of 3013.77, and volatility was well below its recent average. The narrower Dow Jones 30 Industrials Index also closed at an all-time high, following a very similar pattern to the broader S&P 500 Index.
Currency and commodity markets were also quiet, with little of note excepting the break of the New Zealand and Australian Dollars to a new three-month high price against the U.S. Dollar. The NZD/USD currency pair reached a high of 0.6738 during the Tokyo session earlier today as New Zealand inflation data came in on target, showing an annualized consumer price increase of 0.6% in line with analysts’ expectations. The British Pound has held off from its recent lows but continues to look weak as Brexiteer Boris Johnson appears only days away from assuming office as Prime Minister. It seems overwhelmingly likely that the new British government will be prepared to leave the European Union either with or without a deal at the end of October.
Attention is now likely to turn to the release of U.S. retail sales data due later today, plus the scheduled public appearances of both the Chair of the Federal Reserve Jerome Powell and FOMC member Charles Evans.
E.U.: Iran Nuclear Breaches “Not Significant”
The European Union’s foreign policy chief Federica Mogherini positioned the European Union towards an attempted rescue of the JCPOA “Iran deal”, declaring that Iran’s breaches are not significant and may be reversed. She invited Iran to reverse its recent breaches. As expected, the E.U. is trying to defuse recent rising tensions between Iran and the U.S.A. and its allies. Boris Johnson, the overwhelming favorite to be anointed as the U.K.’s new Prime Minister on 24th July, said publicly yesterday that he would not currently back the use of military force against Iran.