Your morning markets update has everyone Waiting on payrolls.
– With the non-farm payrolls data out tonight in the US, markets had an excuse to do nothing as they await the globe’s single-most important data release at 11.30 pm Sydney/Melbourne. After nights like these, there is always some confused commentary and this morning is no different. The reality is that new all-time highs and no further catalyst with a massive data release the following day just means sideways trade. Which is what we saw.
– So at the close, the Dow was down 0.05%, the Nasdaq rose 0.15% and the S&P 500 was up a tiny 0.03%. It is a pretty big week for Q3 earnings in the US as well, which is another reason to watch and wait. Speaking of earning, McDonalds hit their numbers but gave a dire outlook for Q4 while Apple rallied – but check out the story on Ipads. In Europe however, the FTSE was 0.47% higher, the DAX virtually unchanged up a tiny 0.02%, the CAC fell 0.21% while stocks in Milan were virtually unchanged, down 0.04%. In Madrid, stocks managed to rise 0.36%.
– On the Sydney Futures Exchange, the December contract of the SPI 200 managed an 8-point rally overnight to 5343 bid. The 3- and 10-year futures were 2 and 2.5 points lower respectively as rates offshore lost a little ground and US 10’s closed at 2.61%.
– On Forex markets, it was fairly quiet except for the move higher in USDJPY (98.20, +0.51%) after the Japanese export and import data yesterday (+11.5% and +16.5% year on year respectively) left the market concerned about the state of the Japanese economy. Realistically though, while exports were down, the import number speaks potentially to a domestic recovery – but equally a CAD. Elsewhere, the Aussie (0.9656) is mid-range after an fall yesterday to 0.9640 and a high over the past 24 hours at 0.9679. Euro is hardly changed at 1.3678, the pound likewise at 1.6146.
– On Commodity markets, Nymex crude is back below $100 Bbl for the first time since July this year and closed this morning at $99.15. Traders will be watching the $98.68 level, which is the 200-day moving average, as a key support level. Gold is barely moved at $1316 oz, Silver was up 1.66% at $22.18 oz and Copper is at $3.29 lb. The Ags were moving around again with Soybeans up 0.85%, Wheat down a similar amount and Corn up 0.40%.
On the data front, Chinese leading and house price indices are out in Asia and then there is a big vacuum until non-farm payrolls tonight. The market is expecting 180,000 and an unemployment rate of 7.3%.