Market Morning

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Financial markets found some calm overnight even though the anticipated Italian debt auction was successful, it had little to no effect on long term yields, but good economic data out of the US (home sales and unemployment claims) gave the bourses the kick they needed, and generally most risk markets found bids.

In Europe, the UK FTSE finished up 1% to 5566 points, whilst the German DAX was up slightly higher by 1.4% to 5848 points, although both markets saw little rise after the Italian auction, and followed the US data lead instead.

In the after hours futures markets, both markets and indeed almost all Euro equity futures are up slightly in anticipation of the last trading day of the year.

The Euro (EUR/USD) stayed below the “critical” 1.30 level against the USD, although almost reached the former support level intraday, and is currently trading at 1.297, as the USD Index slipped ever so slightly, still above 80 points and looking to finish the year as it started, which can’t be said for the Euro…

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US equity markets jumped on the economic data print, all finishing up around 1%. The S&P500 closed up 13 points or 1% to 1263 points, the tech heavy NASDAQ up almost 1% to 2613 and the Dow Jones was up 1.2% or 135 points to 12287, all on light volume.

US index futures have actually slipped after the close this morning 8am AEDST, although only minor.

The AUD remains remarkably resilient and remains above parity against the USD, actually climbing above 101 cents, currently trading at 1.0137 against the USD.

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With tensions rising in the Straits of Hormuz, and on the back of good US data, WTI crude rose almost 0.5% to but still below $100USD a barrel to $99.78, with Brent crude also up to be above $108 USD per barrel.

Other commodities slipped slightly, with the CRB Index down half a percent and still in a dominant downtrend, reverting back to pre-QE2 values, but the main casualty was gold was another casualty, falling another $17USD an ounce, now at $1545 and remains well below its nearly 3 year long trendline.

The Aussie SPI Futures point to a higher open for the S&P/ASX200 index as we follow the US lead, currently up 24 points or over 0.5%, probably opening around the 4085 level.

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Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon. The Aussie market closes at 2pm AEDST today, as this is the last Trading Day of the calendar year.

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