US shares nudge higher in light trading

Both the Dow and S&P remain close to their all-time highs, but with an absence of economic news today, trading has been subdued.

It is Veterans Day in the US today: although most of the financial markets are still open, the bond markets are shut, there is an absence of economic reports and many people are on holiday. The upshot is that trading volumes have been thin and price movements have generally been slight.

By early afternoon in New York, the Dow had crept up just 0.08% or 12 points to 15,773, adding to the record closing price achieved on Friday. Similarly, the S&P 500 and NASDAQ 100 edged up very small amounts, both gaining 0.04%, leaving the S&P 500 at 1771.4, less than one point from its all-time closing high.

The US benchmark indices have managed to retain some of their upward momentum, therefore, in spite of Friday’s strong payrolls number that has revived speculation that the Fed might taper sometime in the near future. While I think this remains unlikely given the current levels of US inflation and unemployment, it does provide an intriguing build-up to Janet Yellen’s testimony in front of the Banking Committee in the US senate on Thursday. Ms Yellen has been nominated to replace Ben Bernanke as the Fed Chairperson, and her speech is likely to offer insights on her position on monetary policy.

The strength of Friday’s US jobs report and the ECB rate cut on Thursday contributed to a substantial drop in EUR/USD last week, but the currency pair has recovered somewhat today, bouncing 0.27% to 1.3406.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

This information has been prepared by IG, a trading name of IG Markets Limited and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. International accounts are offered by IG Markets Limited in the UK (FCA Number 195355), a juristic representative of IG Markets South Africa Limited (FSP No 41393). South African residents are required to obtain the necessary tax clearance certificates in line with their foreign investment allowance and may not use credit or debit cards to fund their international account.