A relatively risk off night in Atlantic trading, as US home sales data brought equity markets back on track after the Euro bourses retreated earlier in the session. Let’s have a closer look at what happened last night in detail:
The UK FTSE finished down 20 points or 0.3% to 5915, after slumping over 1% in mid-session alongside the German DAX also down slightly to 6849 points, suffering a slight pullback.
The Euro (EUR/USD) stayed below 1.34 against the USD, to 1.337 where it is currently trading there this morning, looking to form an inverse head and shoulders bullish pattern on the daily charts, but struggling to make traction in the medium term:
The USD Index has gained slightly, to 78.5 points, rebounding off support at this level, not adding weight to a continued risk-on thesis, unless it drops below the 78 support zone:
The resilient AUD is back above general resistance at 1.07 where it remains in early trade this morning against the USD, in a tight trading range that could be building for a breakout above. This is also another barometer of risk – a breakout above these levels would be telling, to put it mildly, as AUD continues to be the speculator’s delight.
On the other side of the Atlantic, US equity markets were better performing then their cheese and beer swilling Euro partners, but still finished flat, with the S&P500 up 1 point and the narrower Dow Jones Industrial Average losing 1 point to close below the elusive 13000 point level (although it crossed it many times in intraday trade):
The tech-heavy NASDAQ Composite outperformed – going up a massive 2 points….
US 10 year T-Notes remain below 2% yield at 1.93%, the “dangerous” asset continuing to display strength in a risky world, alongside German bonds, at 1.83% yield as of last night. For reference, Aussie 10 year yields are hovering around 4% – slipping below to be at 3.99% yield again.
To commodities, WTI crude corrected somewhat to be below $108USD a barrel with Brent crude losing over $1 to be below $124USD on the 3 month futures and still at a record high, priced in Euros. The chart below of Brent crude clearly shows the recent breakout that is fuelling (sic) suggestions of slowdown in economic growth in developed (i.e oil addicted) economies, but this is only a short term move. For now.
Gold had its usual $10-15 trading range on the London and NYMEX markets after the Asian session, finishing at $1767USD an ounce, where it remains on the open of the Hong Kong session.
The flatness has extended to the S&P/ASX200 index opening 15 points higher open this morning, to around the 4275 points level trying to claw back the “spill” losses of yesterday. C
Trading Day will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.