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(Kitco News) – World stock markets were higher Wednesday, following the lead of solid gains posted in the U.S. equities on Tuesday that saw the major U.S. stock indexes hit record highs. U.S. President Donald Trump said he would revive the U.S. economy when he was running for the office, and this week he is signing directives to fulfill that pledge, including rolling back regulations on business and signing a controversial oil-pipeline-construction directive.
U.S. stock indexes are pointed toward further gains when the New York day session begins.
Gold prices are moderately lower Wednesday morning. The safe-haven metal is seeing some profit taking from the shorter-term traders. The rally in U.S. stock indexes to record highs this week is also pulling interest away from the safe-haven yellow metal.
The German government auctioned a 30-year bond Wednesday and the average yield was 1.20%, which was nearly double the rate of 0.64% that was fetched for a similar auction in October. Meantime, China government bond yields are also on the rise after Chinese authorities made a move to tighten loans to financial institutions. China's 10-year bond is yielding 3.34%. These are good examples of the significant rise in world bond market yields the past three months, including U.S. Treasuries.
The U.S. dollar index is lower Wednesday morning. The index Tuesday hit a six-week low. Recent selling pressure has produced early technical clues the dollar index has put in a market top. Dollar index prices have been trending lower for three weeks.
The other key "outside market" on Tuesday sees Nymex crude oil prices trading lower. While, OPEC and Russian oil officials said Sunday they are holding to their stated plans to reduce their collective crude oil output, that news has now been factored into crude oil prices.
U.S. economic data due for release Wednesday includes the weekly MBA mortgage applications survey, the U.S. house price index, and the weekly DOE liquid energy stocks report.
By Jim Wyckoff, contributing to Kitco News; firstname.lastname@example.org
Follow Jim Wyckoff @jimwyckoff for breaking market news.