Well that was a fun (and wet) weekend, and now its on again.
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, which will be updated tomorrow, including my trading ideas for the week coming.
Most risk markets in Europe rose, with UK FTSE up 0.4% to 5965, the German DAX slightly lower, up 0.2% to 7157 points. The FTSE is teetering on its resistance level and breaching the pre-correction highs from April 2011:
The Euro (EUR/USD) was up 0.7% against the USD to be at 1.317, as all major currencies – except the Swissie and the Yen rose against the reserve currency, the USD Index 0.6% lower, just below 80 points. The AUD put on 0.6% to be at 1.058 against the USD.
Just a reminder, but not a recommendation, an Australian investor can go long the USD to hedge a falling AUD, using the Betashare ETF – code:USD. I regularly use this as a simple hedging tool in my super fund.
On the other side of the Atlantic, the US bourses were flat on inflation concerns and oil prices mildly, with the S&P500 up 0.1% still above 1400 points at 1404 points as the Dow Jones Industrial Average finished flat.
On to the important debt markets, where US 10 year T-Notes were sold off again, yields lifting to 2.35%, with German bonds (bunds) following to 2.03% yield. For reference, Aussie 10 year bonds were bid up slightly, yields slipping to 4.23% – just below the cash rate.
To commodities, where energies gained, WTI crude up slightly to $106.5USD a barrel, whilst Brent crude jumped over $2 to $125.7USD per barrel.
Gold (in USD) fell immediately on the open of the London session, down to almost $1640USD an ounce, before recovering sharply to end the day and week at $1660 even.
On these relatively good leads the S&P/ASX200 index futures point to a higher open, up around 15 points to probably open around 4295 or so points. Will we crack 4300 points today?
My Trading Day post will cover the Asian market session and the “ASX8” stocks after the close in the afternoon and I’ll endeavour to do some more in depth analysis, because moves are afoot and opportunities abound as the cyclical bull market in US stocks may become a bear market rally in Australian stocks.
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