Good morning! Wall St rallied overnight, and today the Australian market will be looking towards the release of the Reserve Bank’s minutes of its meeting earlier this month.
Go to it.
- The Larry Summers rally reverberated from Asia, through Europe and into the US as stock and bond markets rejoiced (the US dollar was not so enamoured) that the former Harvard President and US Treasury Secretary had withdrawn his name from the list of potential successors to Fed Chairman Ben Bernanke. It is all about perception of course and the FOMC on Thursday will ultimately be key but what a move
- On a quiet data day there was nothing to compete with the Summers news (NYC Empire manufacturing was lower at 6.3 but that was it) so at the close the Dow was up more than 100 points or 0.77%, the Nasdaq fell 0.11% and the S&P 500 broke but couldn’t hold 1700 finishing up 0.59% at 1698
- In Europe it was green across the board but the FTSE lagged again rising only 0.6% while the DAX was 1.22% higher and the CAC rose 0.91%. In Milan and Madrid stocks rose 1.05% and 0.65% respectively.
- On the Sydney Futures Exchange the SPI 200 contract is off about 10 points from the day close at 5245
- On FX markets the US dollar was hit hard initially but has regained some ground this morning with the Euro (1.3332, +0.2%) 50 points off its highs, with GBP (1.5897), Yen (USDJPY, 99.13) and AUD (0.9309) also well off their respective highs.
- Rates were lower with US 10’s at 2.88%, German Bunds at 1.95% and Gilts at 2.71%
- On Commodity markets Nymex crude lost 1.74% to $106.33 Bbl, Gold is at $1312 oz, Copper is at $3.23 lb. Our friends the Ags are at it again with Soybeans off 2.39%, wheat hardly moved and corn fell 0.44%
On the Data front Australian markets will be hanging on the release of the Minutes to this month’s Board meeting. The search will be on for any sense of whether – or not – there is an easing bias at Martin Place.
Elsewhere Korean PPI is out, the BoE quarterly bulletin also and then new motor vehicle sales in Australia. Chinese leading indicators and Foreign Direct Investment will be interesting as well and then onto Europe where we get EU current account, UK CPI and PPI, the ZEW Survey for Germany (huge) and then US CPI (also huge) and the NAHB Housing Index.