Market Morning

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Risk markets had a generally good day on the European and US sessions, based on two factors. First, the UK surprised with a slightly higher than expected GDP result, even though the Treasury warned of a 0.7% annualised growth rate and 2% inflation for 2012. And secondly, although US third quarter GDP was disappointing at 1.8% annualised (instead of 2% estimated), unemployment claims fell to their lowest level since April 2008.

In Europe, the UK FTSE finished up over 1.2% to 5456 points, whilst the German DAX followed, up 1% to 5852 points. In the after hours futures markets, both markets are up slightly following the US lead.

The Euro (EUR/USD) was bid up only slightly against the USD and is currently trading at 1.305, as the USD Index continues to stay doggedly over 80 points.

US equity markets were positive but subdued, on light volume. The S&P500 closed up 10 points or 0.8% to 1254 points, the tech heavy NASDAQ was the same, up 0.8% to 2599 and the Dow Jones up only 0.5% or 62 points to 12169.

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The AUD was bid up slightly alongside most commodities, and is currently trading at 1.0126, whilst WTI crude diced with the $100USD barrier again, rising $99.31 USD a barrel. Brent crude was flat and remains at at $107 a barrel.

Most commodities were lightly bid up, although metals were mixed, with the CRB Index up only a few points but still in a dominant downtrend, with Gold slipping slightly and in a tight trading range during the overnight session, currently at $1605 on the spot market before the opening of the Asian session.

The SPI Futures point to a strong open for the S&P/ASX200 index, currently up 48 points or over 1% to about 4130 points, as the market continues its roller coaster ride through the Christmas period.

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