Markets

Everyone is talking about the US unemployment rate which dropped to 7.8% last month, but the equity markets took a more sober view and the candlestick from Friday’s trade on the S&P 500 is on the ordinary side of ordinary.

The dealer played the risk-on card in the past 24 hours but the bullish bounce in Asia passed Europe by even thoughoil, the US dollar, gold and the Australian dollar reacted strongly to the improved sentiment.

Stocks were mixed overnight as the market continues to wait for non-farm payrolls on Friday.

Stocks were lower overnight apparently as some concerns about the coming earnings season and exactly what game Spain is playing weighed.

The see saw pattern of trade continued last night with Europe on a tear early and the rally continued even though the data on balance stills speaks of economic weakness.

Turkey shooting season continued Friday with markets deciding it was time for a bit of weakness in equities and some US dollar strength.

The only way is up, baby – for you and me now!

Policy uncertainty and protestors in the streets dominated markets overnight as the protests across Europe and enduring European punch up over the implementation of OMT weighed heavily.

Not a great night if you are in the bullish camp with the Dow falling 100 points along with weakness in the euro,  The Australian dollar, crude oil and gold.

More consolidation or back sliding markets overnight – depending on your point of view – as the reality of the data continues to undermine the hope of QE.

For the first time in ages we had a quiet end to the week without the usual data, corporate announcements or other fractious goings on.

Data, data, data – weak, weak, weak.

Stocks reversed yesterday’s disquiet and rallied overnight after the Bank of Japan (BoJ) set up a nice rally in Asian trade by joining the free money party with the Fed.

Stock markets drifted lower in Europe, were largely unchanged in the US, the CRB lost almost another 1% as the US dollar’s recovery continued over night as markets focus on what is in front of them now.

What a difference a day makes.

The Dow and S&P 500 climbed to 5 year highs on Friday night while the NASDAQ is up in a stratosphere not seen in more than a decade as the Fed’s plan for an open ended QE3 program gets traction in asset markets.

Stocks rallied, the US dollar fell lifting the euro, Australian dollar and others while gold, crude and copper all rose as well. The catalyst of course was the FOMC (Federal Reserve Open Market Committee) announcement which is clearly a victory both for Ben Bernanke and for the global economy.

The Dow Jones Industrial Average finished at its highest level in around 5 years overnight as hopes that the Fed will deliver QE3 outweighed the threat by Moody’s to take away the US’s AAA rating.

That was quick.

US Non-farm payrolls disappointed on Friday adding only 96,000 jobs against expectations above 120,000 but the markets were in far too ebullient mood to let this disappointment rattle.

By Chris Becker Where do the markets stand now that Super Mario has unleashed the demons of inflation – or is that deflation – with the unlimited bond buying program?

Draghi delivered on his plan to address the debt crisis overnight which in and of itself is newsworthy given all the false steps and miss starts we have seen over the past year.

More leaks out of the Europe have laid out what is at the table at tonight’s ECB meeting.

I thought that the market, stocks that is, might rally as we head toward Mario Draghi’s important announcemenon Thursday but the data just won’t co-operate.