Financial markets started 2012 with a bang, although only a few were open, the German DAX in particular firing off, up 3% following its 15% loss of last year. This was supposedly on the back of a higher, but still contracting manufacturing gauge which beat low expectations, and looks set to raise risk higher across the world. The UK and US markets were closed yesterday, as was the local and Asian bourses, which all open this morning.
The futures are pointing to a flat open for the FTSE later this evening, AEDST and the DAX to remain flat, but elevated.
The Euro (EUR/USD) stayed below the “critical” 1.30 level against the USD, falling further overnight, currently trading at 1.2925, as the USD Index remained above the 80 points level, although the other major non-US currencies increased slightly.
As noted above, US equity markets were closed. Futures are pointing to the S&P500 opening around 15 points lower to 1252 points, the tech heavy NASDAQ to open flat and the Dow Jones down around 50 points to 12232.
The AUD continues its resiliency into the new year, staying above parity against the USD currently trading at 1.0122 against the USD and just over 79 cents against the Euro (which, strangely is touted by the likes of Craig James at Commsec, as being “rejoiceful” for Australians, except the manufacturers, local tourism industry and retailers of course….)
With tensions rising in the Straits of Hormuz as Iran “calls the shots”, WTI crude actually fell almost 1% to $98.83, with Brent crude also down to be at $107.38 USD per barrel.
Commodities were light on trade and mixed, with the CRB Index up slightly and still in a dominant downtrend, reverting back to pre-QE2 values, gold was relatively quiet to start the year, currently at $1555USD per ounce and remains well below its 3 year long trendline.
The Aussie SPI Futures point to a lower open for the S&P/ASX200 index alongside the Nikkei 225, currently down approx. 30 points or 0.7%, probably opening around the 4030 level.
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon. Further technical analysis of all markets will commence as they all open and trading volume picks up after the Christmas-NY break.