As equity markets in Asia recovered from the “surprising” Chinese CPI result, European markets were on tenterhooks before posting solid gains, followed by the US markets, with all bourses finishing in the green. The reason? Greece signed off on economy-killing austerity measures, measures required to get 130 billion “financing package” i.e debt.
In detail:
The UK FTSE finished up 0.3% to 5895, still well above its resistance level at 5700 points with the German DAX up more than 0.5% or 40 points to 6788 points, still eyeing off the pre-correction support level (now resistance) at 7000, but a potential retracement or correction possible.
The Euro (EUR/USD) stayed above 1.32 against the USD and is currently trading at 1.328, as the USD Index slipped slightly, down at 78.15, refusing to go above resistance at 79 points.
The ever resilient AUD remained fairly strong, the commodity proxy staying below 1.08 against the USD, now trading at 1.078, whilst Aussie 10 year bonds were sold off again, yields rising to over 4%, at 4.07%, still below but catching up to the cash rate.
US markets were slightly less ebullient than their Euro counterparts, with the S&P500 Index finishing up 2 points or 0.2% at 1349 points and almost ready to take out its previous high, a tremendous recovery since the October 2011 lows:
The narrower Dow Jones was flat at 12890 points whilst the tech heavy NASDAQ Composite was the only real mover, up 0.4% or 11 points to 2927 points.
To commodities, WTI crude put on over 1%, finishing at $99.84USD a barrel, remaining below the “magic” $100 number. Let’s hope for US consumers that it stays that way, although Brent crude seems to be rallying again, up another $1.50USD a barrel to $118.70 on the 3 month futures.
Gold had another very volatile session (again I was up late last night trading it, it remains my favourite intraday security to trade) hitting a low of $1730 after rising well above $1750, consolidating at $1729USD an ounce, actually not moving much for the night, now waiting for the open of the Asian session.
The Aussie SPI Futures are pointing to a slightly higher open for the S&P/ASX200 index, probably up 7 points around the 4285 points level on these mixed leads. Rio Tinto (RIO) announced interim results after the close yesterday, so expect some movement there, whilst its golden counterpart in the ASX8, Newcrest Mining (NCM) reports today.
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.
Also note that Earnings Season continues today, with all eyes on Rio Tinto (RIO), whilst Telstra (TLS), BWP Trust (BWP), Stockland (SGP) and Tabcorp (TAH) also amongst the major reporters.