Here’s your morning market update:
– Markets were positive, but fairly quiet by recent standards. The standout thought processes appear to have been relief that the Syrian issue might find a diplomatic resolution and hope that the FOMC might only taper by a little, or nothing at all, after next week’s FOMC meeting.
– The launch of the new Apple iPhone was a bit underwhelming and the market reacted poorly in the US overnight, knocking Apple shares down more than 5%, which saw the Nasdaq and S&P 500 underperform the Dow, which continued its positive run higher. At the close, the Dow was up 136 points at 15327, the Nasdaq was 0.11% lower and the S&P 500 was 5 points higher at 1689.
– In Europe, Shares rallied into the close to lift the FTSE and CAC 0.06% into the black, the DAX closed up 0.59%, while stocks in Milan and Madrid were 1.33% and 0.83% higher respectively.
– On rates markets, US 10’s rallied 5 basis points to 2.92%, but the big news was that Verizon completed a $49 billion sale of 10-year bonds at 5.19% which was half a per cent more than the usual rate on their 10-year securities. When you think about it, that’s a cheap rate to borrow at, given the metrics of corporate finance and the fact it’s the biggest corporate bond ever.
– Forex markets are just trading in a range mostly with the Yen gaining a little ground on the USD, which fell back under 100 and is sitting at 99.94. The Euro is back above 1.33 at 1.3308 and the Pound also gained, rising 0.57% to 1.5823.
– Locally the Aussie dollar benefited from the strong Westpac Consumer Sentiment data yesterday and an overall more positive tone in markets. Sitting at 93.30 – just below the high of 93.38 cents overnight – the Aussie looks poised for a breakout if it can find the impetus, or a reversal. Employment data today is key.
– On commodity markets, Nymex Crude is at $107.70 mostly unchanged, as is gold which is is at $1361 oz. Corn rose 1% and Coffee bounced 3.25%.
– On the Sydney Futures exchange, the SPI 200 is currently at 5241, bid up 10 points on yesterday’s close, while 10-year bond futures were dragged 5 points higher with the US rally.
– On the data front today, the RBNZ meets in New Zealand, Japanese Investment and machinery orders data is released and then we’ll get Employment data in Australia. Bank Indonesia has a meeting and Indian manufacturing data is out before European industrial production and Italian CPI data. In the US, it’s jobless claims, export and import prices, and a 10- and 30-
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