Equity markets forge ahead

KUWAIT: Equity markets continued the trend of setting fresh records, as the S&P closed at an all-time high of 2,534.58. Asia-pacific markets followed suit, as regional developments drove trading. Meanwhile, Asia-Pacific currencies rose against the dollar, with the dollar index down to a level of 93.430. The yield on the 10-year US Treasury was flat at 2.319 percent, still down from 2.371 percent on Monday.

Britain’s construction industry has contracted for the first time since the immediate aftermath of the Brexit vote, as rising political uncertainty led to a sustained drop in new work. September data revealed a difficult month for building companies, as new projects planned before the referendum failed to materialize. The drop in workload was attributed to a loss in confidence and subdued appetite for risk, especially in the commercial building sector. The headline reading on the Markit UK construction PMI report fell to 48.1 last month from 51.1 in August.

Producer prices increased better than expected showing good signs of inflationary pressures in the Eurozone. The release is welcomed as markets await the ECB’s decision on reducing their QE program later in the month. Reports show that prices increased by 0.3 percent in August against a 0.1 percent expected. Annually, prices are now 2.5 percent higher.

In commodities, gold prices rose yesterday after hitting a 7-week low in the previous session, supported by a dollar pull back from a monthly high against a basket of currencies. Gold was up 0.3 percent to 1,275.34.