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Morning Brief 03.04.2017

03 April 2017

After strong first quarter US stock index closed after modest loss on Friday. Nasdaq Composite dropped 2 points from its record high and closed at 5911, S&P dipped 5 points and closed at 2362, the Dow Jones shred 65 points and closed at 20663.

Real estate sector and utilities strengthened and financial sector shares dragged the index down.

US treasury yields found it hard to move upward due to the several Federal Reserve officials’ comments that the Central bank is not in a hurry to tighten monetary policy as there is no sign of overheating in economy, including St Louis Fed President James Bullard, New York Fed president William Dudley and Minneapolis Fed President Neel Kashkari.

On the economic Front, According to the U.S commerce department the personal income increase 0.4% in February versus the 0.4% expected, personal spending improved 0.1% versus the 0.2% expected. In another data University of Michigan index came out to be at 96.9 versus the 97.6 expected and Chicago PMI climbed 57.7 in March versus the 56.9 expected.

 According to private sector ANZ survey, Australian jobs ads increased 0.3% last month, reversing the February’s fall of 0.8%. Year over Year edged up to 7% from 6.9%. On the other hand Australian House prices growth is going to take some time, according to data, capital city dwelling values move upward 1.4% in March, which also takes the combined capital city index to an annual growth rate of 12.9%; which turns out to be the highest annual rate growth since the May 2010. Four of Australia’s city among eight capital cities is now displaying annual growth rate values higher than 10%, while Darwin and Perth continue to trend lower on an annual basis. Sydney house prices increase 18.9% on year in <arch. RBA previous week announced steps to decrease the lending to investors. Australian dollar is expected to trade little lower in today’s trading.