Here’s the morning market update from Greg McKenna at GlobalFX.
– Stocks and bonds ended the week stronger after the weaker than expected new home sales in the US which fell 13.4% versus the expected 1.4% drop. Clearly this sort of thing takes the pressure off the Talk of Taper and both sectors benefited.
– At the close, US stocks were higher across the board with the Dow up 0.32%, the Nasdaq up 0.53% while the S&P 500 rose back to 1664 up 7 points or 0.42%. In Europe the FTSE was 0.70% higher, the DAX rose 0.23%, CAC 0.24% while Milan and Madrid were up 0.19% and 0.66% respectively.
– US 10-year rates closed at 2.81% while 10-year Gilts were 2.71% and Bunds 1.94%.
– On Global FX markets, the weak housing data knocked the US dollar for six against the Euro (1.3380) which spiked but then drifted over over subsequent hours. Sterling (1.5573) did likewise but got hammered into the close and the Yen (USDJPY, 98.67) gained as well before the US dollar strengthened into the end of the week. For the Aussie dollar, it was a 40-point bounce into resistance at 0.9030/40 before it drifted off to close at 0.9025 where it is this morning.
– On commodity markets, gold spiked as well on the broad US dollar weakness after the housing data closing at $1396 up 1.84%. Silver’s spectacular move continued up another 3%, while oil also rose on the weaker USD up 1.32% to $106.32. The Ags were at it again with volatility the order of the day – corn rose 1.64%, wheat 0.63% and soybeans were 3.2% higher. I’m guessing margin calls have increased on these futures.
– On the data front there is some important things this week, none more so than the Ifo data in Germany tomorrow night and US GDP data on Thursday. Today, however, sees the release of trade data in New Zealand, Singaporean industrial production, a Bank Holiday in the UK and Durable Goods and Dallas Fed manufacturing in the US.
Follow Greg Mckenna on Twitter
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.