A very positive Friday on equity markets, as the global dataflow excited markets, the biggest showing U-3 unemployment (i.e the very narrowest of measures) falling to 8.3% in the US. Germany, another exporting powerhouse that purposefully has a cheap currency, also saw a reduction in unemployment. Too bad for the peripheral Euro states with record high unemployment, and too bad they have a purposefully expensive currency, although at least bond yields are starting to fall for the PIIGS.
In detail:
The UK FTSE finished up very strongly, nearly 2% again at 5901 points, well above its resistance level at 5700 points with the German DAX also powering ahead, up 1.7% or 111 points to 6766, the pre-correction support level (now resistance) at 7000 closing in fast.
The Euro (EUR/USD) climbed above 1.32 against the USD but is currently trading at 1.3124, as the USD Index slipped to be just above 79, still below support at the 79.6/80 point zone. The ever resilient AUD remained above 1.07 against the USD, with the ebullient perma-bulls calling for 1.10! 1.15! 1.20! for what is probably the most speculative currency in the world. The commodity proxy is currently trading at 1.075, whilst Aussie 10 year bonds came off a bit, yields rising to 3.86% still below the cash rate.
US markets of course all finished in the green with the broader S&P500 Index finishing up 19 points or 1.4% to 1344 points, whilst the narrower Dow Jones was up 156 points or 1.2% to 12862 points. Finally, the tech heavy NASDAQ Composite was up 46 points or 1.6%, all signs pointing to continued bullishness on the American bourses.
To commodities, WTI crude rebounded after slipping earlier in the week, but still remains well below the psychologically important $100USD a barrel level, with March futures at $97.84USD. Let’s hope for US consumers that it stays that way.
Gold fell off the wagon, falling over $32USD an ounce or nearly 2% overnight to $1725USD, where it remains, now waiting for the open of the Asian session. Explanation? Better economic data = Fed might raise rates sooner? How about just noise?
Silver took a similar dive, lsoing 2% to be at $33.72USD per ounce on the spot markets. Metal commodities continued to rebound across the board on the London metals market (LME), with aluminium up nearly 3%, copper also 3%, nickel up just over 2%, and tin up 1%.
As such, the Aussie SPI Futures are pointing to a very strong open for the S&P/ASX200 index, probably up more than 1.5% or over 60 points around the 4315 points level, on these great leads.
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.