Equity markets in Europe increased overnight, but had no further leads as US markets were closed for a public holiday. As mentioned this morning, it seems all risk markets are rising at once, so let’s have a closer look at what happened last night in detail:
The UK FTSE finished up 40 points or 0.7% to 5945, almost at the psychologically powerful 6000 point level, well above its resistance level at 5700 points. The German DAX was up very strongly, over 100 points or 1.5% to 6948, also almost at another key level – this time at 7000 points, the support level before the correction in August 2011:
The Euro (EUR/USD) is currently trading at 1.323 flat last night as the USD Index was also flat, staying at just above 79 points, not adding weight to a risk-off correction, but not confirming a continuation of USD weakness.
The resilient AUD jumped again, staying above 1.07 where it remains in early trade this morning, with Aussie 10 year bonds sold off, yields gaining to be at 4.11% and just below the cash rate.
To commodities, WTI crude – the light sweet oil is now almost above $105USD a barrel on spot prices, rising over $1USD last night, not good news for US consumers with Brent crude also rising in kind to be above $120 on the 3 month futures.
Gold was basically flat with no noise coming from the US pits, and finished to be just below $1735USD an ounce, where it remains on the open of the Hong Kong session.
The Aussie SPI Futures are pointing to a slightly higher open for the S&P/ASX200 index, probably up 10 points around the 4260 points level on these mixed, but generally good leads.
Earnings reports are ramping up again today – with Boart Longyear, Downer EDI, Flight Centre, Mirvac, Monadelphous, Oil Search, Onesteel and Sonic Healthcare the major ASX200 companies announcing interim results.
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.