Your morning market update incl-… hang on, it’s Cup Day.
– Let’s face it, with Melbourne out for the day and Sydney getting ready to go to Melbourne Cup functions around lunch time, most traders will have their head in the form and be waxing lyrical with why their pick is going to win. There will be a little bit of work first though, and the Reserve Bank Board meeting is important as well. But with no move expected, it should be a fairly quiet day.
– Overnight in the US, however, stocks managed to push higher once again with the Dow up 0.15%, the Nasdaq up 0.38% and the S&P 500 up 6 points or 0.36% to 1768. The good news was that the NYC ISM surged from 53.6 to 59.3 while factory orders were up 1.7% in September, which is a reasonably solid performance in what it suggests for the economy.
– Across the Atlantic, EU Manufacturing PMI hit expectations printing 51.3, Germany was a little stronger than expected at 51.5, Italy undershot a little at 50.7 and France went further backwards printing 49.1. Initially these results seemed to weigh on European bourses but by the close of play they were firmly in the black. The FTSE ended up 0.43%, the DAX was 0.32% higher and the CAC up 0.37%. In Milan, stocks rose 0.77% while in Madrid the IBEX was 0.36% higher.
– Closer to home, the SPI 200 contract rallied 17 points to 5396 after a big reversal yesterday in our time zone. On the bonds, the 3-years fell 1 point and the 10-years bond future was half a pip lower, which reflected a fairly quiet night in US 10-year Treasuries.
– On FX markets, the Aussie was the big winner after the stronger-than-expected retail sales yesterday coupled with low inflation and the strong rise in the ABS house price indices. This morning, the Aussie sits at 0.9509, up 0.72%. The euro is 0.24% higher at 1.3520, sterling gained 0.31% to 1.5972 and USDJPY 98.57.
– On commodity markets, Crude was largely unchanged at $94.47 Bbl, Gold was similarly quiet at $1311 but Copper tanked 5 cents a pound or 1.4%. It’s been in a fairly tight range for a while now but it bears watching. Corn, Wheat and Soybeans fell 0.41%, 0.67% and 0.24% respectively.
– Bitcoin ripped higher from the 213 open yesterday morning to 234 this morning and seems biased higher.
On the data front today, in Australia we get the release of the AiG performance of Services Index, HSBC CHina Services PMI, RBA decision and statement this afternoon before European PPI and ISM non manufacturing PMI in the US.
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