Market Morning

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Risk markets were mixed last night as the S&P downgraded the EFSF, almost 2 billion Euro in French government bond debt was successfully sold, yet Portugese 10 year yields jumped to 14.4% from 13%, as it was downgraded to junk. US markets were closed due to a public holiday, but Q4 corporate earnings expectations are falling:

In detail:

The UK FTSE put on 20 points or 0.4% to finish at 5657 points, still below its resistance level at 5700 points and going sideways. The German DAX jumped, back up 1.25% or 36 points to 6220, and is dicing with resistance, and the closely watched 200 day moving average:


The Euro (EUR/USD) was up mildly, currently trading at 1.2678, as the USD Index was steady just below 82 points, currently at 81.79.

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US markets were closed for Martin Luther King Jr day, but US futures are up slightly, with the Dow Jones currently at 12453 points, up around 30 points before the start of the Asian session.

The AUD remained resilient amidst the downgrades and is slightly above 1.03 against the USD, currently trading at 1.031, while it remained above 81 cents against the Euro, now at 81.35 cents.

To commodities, and WTI crude, was bid up exactly 1%, up 99 cents a barrel to be just under $100 a barrel whilst Gold saw a similar bid, gaining $13USD $17USD an ounce or 0.8% to $1643, waiting for the open of the Asian session:

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Silver was up over 42 cents an ounce to be just below $30 per an ounce whilst other metal commodities were mixed, with aluminium reversing yesterdays losses, up 0.9%, copper up 0.6% building on its breakout, and nickel correcting 1.4% on the London metals market (LME).

The Aussie SPI Futures point to a higher open for the S&P/ASX200 index, probably opening around the 4160 points level, as leads from the US are non-existent, it will likely be a choppy session with lending finance data possibly moving things a bit.

Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.

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