Market Morning

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Risk markets fell last night, as ructions over the continued debate over whether or not private bondholders should escape nearly scot-free from their bad investment choices continued, overshadowing good flash services/manufacturing PMI data from France and Germany. US corporate earnings were not disappointing, on the whole (consumers still love eating “food” at McDonald’s and using Apple products) but not earth shattering either.

In detail:

The UK FTSE lost 30 points or 0.5% to finish at 5751 points, still above its resistance level at 5700 points whilst the German DAX slipped slightly, losing 0.3% or 17 points to 6419, also above its recent resistance level.

The Euro (EUR/USD) remained above 1.30 against the USD, buoyed by the good PMI data, and is currently trading at 1.303, as the USD Index was stable, currently at 79.9, below its short term trendline and remaining above support at 79.4 points.

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US markets were very flat again, with the broader S&P500 Index finishing down – barely – to 1314 points, on low volume. The Dow Jones was down 33 points, or 0.3%, to 12675 points. Finally, the tech heavy NASDAQ Composite was up 2 points – flat – to 2786 points, with Apple soaring in after-close trade.

The ever resilient AUD slipped slightly overnight, slightly below 1.05 against the USD this morning, currently trading at 1.048, and also slipped below 81 cents against the Euro.

To commodities, and WTI crude retraced again, still flirting with the $100USD a barrel level whilst gold was sold off by almost $10USD an ounce, now at $1665USD waiting for the open of the Asian session.

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Silver fell as well, taking back most of yesterday’s gains to be at $30.52USD per ounce on the spot markets. Aluminium was flat, hitting resistance at $1 per lb, copper similarly standing by, whereas nickel surged over 1% on a flat day on the London metals market (LME).

The Aussie SPI Futures are pointing to a slightly higher open for the S&P/ASX200 index, probably opening around the 4240 points level, on mixed leads waiting for the important CPI print just before lunch, with no much other data to go on.

Australian corporate earnings season picks up pace today with Alesco (ALS) reporting.

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

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