Market Morning

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So the launch of the new iPad lifted markets. Or something like that – more likely the good ADP private employment numbers and the “good” private credit figures from the US, even though the latter is entirely driven by bubbling student credit creation. Lets check out what happened in detail – remember to read my weekly update to always put this daily noise in context:

The UK FTSE and the German DAX, were both up around 0.5%, as news that a slim majority of Greek PSI bondholders would agree to the debt swap. This is only a small move up and tensions are mounting in Europe, remember two major European bourses have failed to break resistance barriers set by this liquidity led (LTRO) equity rally, at 5950 and 6950 points respectively.

The Euro (EUR/USD) was flat after yesterday’s pummelling, still at 1.314 against the USD this morning, with most currencies (except the strong Yen) flat against the USD, the USD Index has slipped a fraction to remain just below 80 points, strongly consolidating at this resistance level.

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The AUD remains above 1.05 against the USD, coming into the jobs figures this morning, where a disappointing print is likely to put pressure on our precious proxy:

The S&P500 rallied around 0.7% to 1352 points, and remains weak and very “toppy”:

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The NASDAQ Composite rose nearly 1%, but bubblicious Apple (AAPL) barely moved on the release of its new iPad:

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On to the arguably more important debt markets, the US 10 year T-Notes yields rising slightly to 1.98%, German bonds (bunds) falling again, to 1.77% and Aussie 10 year bonds also gaining slightly, yields down to 3.96% with the yield curve still inverted.

To commodities, where the metals had a good night (particularly silver – up 2%) whilst energies regained the previous session losses. WTI crude finishing just below $105 a barrel, and Brent crude below $124USD on the spot markets.

Gold rallied slightly, gaining around $8USD an ounce to $1685 where it remains on the open of the Asian session, but still appears weak, with a series of lower lows on the daily chart:

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The S&P/ASX200 index futures to a flat open, up 10 points to around 4150 points on these good leads, but hesitant as all eyes on job figures released this morning..

My Trading Day post will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.

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