Note: Market Morning is an update on overnight markets that was previously performed late in the afternoon in the “Trading Day” post. This will be more timely and provide our readers with an overview before the Asian risk markets open.
Risk markets surged overnight, with two factors at play: first in Europe, a very successful Spanish debt auction and rising German confidence numbers, followed by the US release of housing starts, up 9.3% at the highest level since April 2010.
In Europe, the UK FTSE finished up 1% to 5419 points, whilst the German DAX rocketed up 3% to 5847 points. In the after hours futures markets, both markets are following the US trade, up over 1 percent.
The Euro (EUR/USD) rose above 1.30 against the USD and is currently trading at 1.3079, as the USD Index retreats from its one year high, now below 80 points:
The US equity markets followed the European lead and then rallied further on the housing starts figures. The S&P500 closed up almost 3% to 12415 points, the tech heavy NASDAQ was up slightly more, 3.2% to 2603 and the Dow Jones up over 300 points or 2.9% to 12103.
The AUD headed straight back above parity against the USD, after proving resilient yesterday, and is currently trading at 1.0064, whilst WTI crude climbed more than $3 to $97.24 USD a barrel. Brent crude rose similarly, now at $107 a barrel.
Commodities rallied, with the CRB Index up almost 2% but remaining in a dominant downtrend, with gold jumped above the $1600 USD an ounce barrier at $1612 on the spot market before the opening of the Asian session, and is just under its long term trendline.
The SPI Futures point to a very strong open for the S&P/ASX200 index, currently up 80 points or nearly 2%, with eyes on the retail sector as bargain hunters permeate.