Benign moderation has returned to the markets, in the absence of the continuing Greek debt crisis, post-default, and significant data releases (except confirmation of the recession in Italy). A quiet night for a change or the norm?
Lets check out what happened in detail before the open of the local markets – remember to read Trading Week to always put this daily noise in context:
Starting in Europe, the UK FTSE and the German DAX, were flat and up – the former up 0.1%, the latter over 0.3%. The two major European bourses have not yet broken resistance barriers set by this liquidity led (LTRO) equity rally, at 5950 and 6950 points respectively, but they are now getting close again.
The Euro (EUR/USD) was basically flat, consolidating at 1.315, sideways for now:
The USD Index has slipped below 80 points again, but remains strong, with support below at 78 points. The Swissie and Yen were the only gainers against the world’s reserve currency. As Deus Forex Machina pointed out this morning, the AUD is under pressure, steady for now at 1.051 against the USD.
The US markets finished flat as a pancake dripped in Canadian maple syrup (sorry writing this whilst hungry), with the S&P500 dead flat at 1371 points, where it’s gone from “toppy” to sideways:
On to the arguably more important debt markets, the US 10 year T-Notes yields up again to 2.03%, German bonds (bunds) were actually bid up, with yields falling to 1.76% and Aussie 10 year bonds yields down to 3.94%, with the yield curve still inverted. US T-Notes bear (sic) watching, I might update on this later.
To commodities where energies remained flat with WTI crude finishing just above $107 a barrel, and Brent crude just below $126USD on the spot markets – both still at high levels, with the former looking like breaking to the upside again:
Gold was flat and stayed over the $1700USD barrier again, finishing at $1701USD an ounce where it remains on the open of the Asian session, with a slight uptick likely during today. Silver was as volatile as ever but eventually finished flat at $33.71USD an ounce.
The S&P/ASX200 index futures point to a higher open, up 12 points to just over 4200 points on these flat, but hopeful leads.
My Trading Day post will cover the Asian market session and the “ASX8” stocks after the close in the afternoon.
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