Markets had a bullish session last night, particularly Europe, even as the PMI data underwhelmed, except in the UK, it was US manufacturing data that also buoyed markets. Let’s have a look at the details of what happened.
Remember to read my weekly analysis of all major macro markets in Trading Week to put this daily noise in context.
The UK FTSE closed 1.8% higher to 5874 points, the German DAX rising 1.6% to be 0ver the important 7000 level again at 7056 points.
The Euro (EUR/USD) was up slightly, at 1.332 against the USD, whilst the AUD slipped slightly from its 1 cent gain yesterday, finishing just above 1.041 on the spot market.
As a result, the USD Index is off by 0.25%, down to 78.8 points and remaining just above its critical support level at 78 points. This is one to watch:
On the other side of the Atlantic, the US bourses were bid up, but not as much, with the S&P500 rising 0.7% to 1419 points whilst the Dow Jones Industrial Average was up 0.4% to 13264 points, now back at December 2007 levels.
Apple (AAPL) rose over 3%, rising to $618 a share and continuing to confound the realists:
On to the important debt markets, where US 10 year T-Notes were steady at 2.18% yield alongside German bunds at 1.8% yield. Aussies were sold off very slightly, yields rising 1 pip to 4.07% as traders and economists (definitely not repeating myself there) wait for the RBA to do something today.
In energies, crude futures were strong on reaction to the Chinese PMI, with Brent up 2% to $125.40USD a barrel and WTI also up 2% to $105.1 USD per barrel. Still quite high, and still one (two) to watch in week(s) ahead.
Gold (in USD) had another bullish night, at least in the NYMEX session where it jumped over $15 an ounce, before retracing a little bit to be at $1676 an ounce at the start of session here in Asia:
On these good leads the S&P/ASX200 index futures are up strongly – almost 20 points or nearly 0.5% to open probably around 4350 points. However, the New Zealand NXZ50 has opened down 0.1% so its a small mixed lead for how the Asian session will go.
There is important local data today, with retail trade figures from the ABS and of course the rates decision from the RBA, as rates speculation continues…
My Trading Day post will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.
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