Market Morning

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Risk markets continued to rally last night, with the US dollar falling in response, as the US corporate earnings season rolls on.

In detail:

The UK FTSE put on 8 points or 0.1% to finish at 5702 points, just on its resistance level at 5700 points and looking bullish. The German DAX was also up, gaining 0.3% or 21 points to 6354 building on its bullish case, more easily seen in the weekly chart below, where if it closes the week at this level, would be higher than the October rebound high:


The Euro (EUR/USD) was up breaching 1.28 against the USD, currently trading at 1.284, as the USD Index fell 0.6 points, as all major undollar currencies ralled against the “toilet paper” standard, currently at 80.8, teetering on its short term trend, but still in a dominant intermediate trend (i.e in opposite to almost all risk markets.)

US markets were strong, as corporate earnings – although not beating expectations in the main, were solid, with the broader S&P500 Index up 14 points, or 1.1% to 1308 points back to a July 2011 high building on its breakout, although volume is building, it is still low. The Dow Jones lagged slightly, up 98 points or 0.7% to 12579 points and continued to gain momentum – a close above 12800 points would signal a new bear market rally. The tech heavy NASDAQ was up a strong 1.5% to 2769 points.

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The AUD and was bid up above 1.04 against the USD, currently trading at 1.0418, while it remained above 81 cents against the Euro, slipping slightly to 81.35 cents.

To commodities, and WTI crude, was lightly bid up around 40 cents a barrel to be at $101.09 a barrel whilst gold was in a wide trading range throughout most of the night, and finally saw some bids in the NYMEX session, currently at $1658USD an ounce, waiting for the open of the Asian session.

Silver was stronger than its shiny brother, rising almost 50 cents or 1.5% to be at $30.55USD per ounce on the spot markets. Aluminium slipped around 0.6% to remain below $1 per lb, copper up 0.7% building on its breakout – looking like heading for $4USD a lb – and nickel was flat, only up 0.1% on the London metals market (LME).

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The Aussie SPI Futures are pointing to a strong open for the S&P/ASX200 index, probably opening around the 4245 points level, with positive leads helping. Crucial unemployment data (see here for full weekly list) today might shake things up a bit.

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

www.twitter.com/ThePrinceMB

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