Your morning market update finally features all the big milestones.
– Okay, can we signal the high in stocks now? The bulls were able to square the circle and hit the triumvirate of milestones with the Nasdaq hitting 4000 at the time when the S&P 500 was above 1,800 and the Dow above 16,000. At the close, the Nasdaq is back at 3,995 +0.08%, while the Dow sits at 16,073 (+0.05%) and the S&P is at 1,802 for a fall of 0.15%. Data in the US was on the weaker side with the Dallas Fed Index falling to 1.9 from 3.6 and pending home sales down again, falling 0.6% in October – 5 months in a row now, I think.
– In Europe, the FTSE rose 0.33%, the DAX a stellar 0.88%, while the CAC in Paris somehow rose 0.55% even though French business climate data remains subdued. Maybe the source of the pseudo-ebullience is the fact that Christian Noyer said rates in Europe are low, will stay low and may even go lower. Such a plan and the possibility of QE surely increases the chance the Fed will taper sooner rather than later.
– Closer to home on the Sydney Futures Exchange, the December contract of the SPI 200 is up 2 points at 5,376 bid. On the bonds the 3’s are 2 points higher while the 10-year bond contract has risen 3 points on the Dec contract and 4.5 for the March contract. Offshore US 10’s fell a point to 2.74%, Gilts were 2 points lower to 2.61% while Bunds also dropped 2 points to 1.73%.
– On currency markets the Aussie dollar’s recent fall stabilised somewhat with a low of 0.9117 overnight but it is back around the 0.9160 region this morning. The euro tried so hard to break out yesterday but failed at 1.3560 and sits at 1.3512. GBP is off nearly a full big figure from the high of 1.6240, resting at 1.6147 this morning. USDJPY continues to rally, however, which is driving some big moves in yen crosses. It sits at 101.71.
– On Commodity markets, it was a nice bounce in Gold from a low in the US session of $1227 to sit back at $1248 oz this morning. Crude is down 0.8% to $94.08 but it is actually an up day, in terms of price action from the open and the low. Of course the Iran deal is the key driver here, with questions about whether and how additional supply can be absorbed into the market at the current price. Of course, it probably can’t and a break of $91.30/50 is key, according to the technicians. Copper’s rally continued up another cent per pound to $3.24 and the Ags were all higher with Corn up 0.65%, Wheat up 0.46%, while Soybeans rose to 0.68%. Bitcoin was positively boring, moving through only an $81 range and it sits at $811.87 this morning.
On the data front today, RBA Deputy Governor Phil Lowe is speaking at 9.15am while Buba President Weidmann is also speaking today. Tonight in the US there is more housing data, with the release of housing starts, building permits and the Case Shiller house price index. Also out in the States is the Redbook Index, consumer confidence and Richmond Fed manufacturing.