Wall Street continues its winning streak and makes new highs

Wall Street has continued its winning streak, with the benchmarks  all closing at record levels yet again.

The Dow Jones Industrial Average gained 64 points, or 0.3%, to end at 19,613, while the S&P 500 added just 4 points, or 0.2%, to finish at 2,246. The Nasdaq Composite Index climbed 23 points, or 0.4%, to close at 5,417. The mood was risk-on with a dovish ECB and stocks rose with Wall street taking up the baton. The US dollar index ended 0.9% higher.  The Fed funds futures still implies a 100% chance of a rate hike on 14 December, with two more rate hikes priced in for 2017. 

There was a rise in US yields with the US 10yr treasury yields rising from 2.34% to 2.42% and 2yr yields rising from 1.09% to 1.13% before retracing to 1.10%  - the pressure on bonds and yields rising comes in a response to the ECB's announcements  while markets expect a potential reflationary fiscal environment in the US.

ECB, tinkering not tapering - Nomura