Your morning market update is a bit of a mixed bag.
– A better night for stocks, with rallies across the board. It seems the catalyst was the data from China yesterday with the HSBC Chinese PMI printing stronger than expected at 50.9, which overshadowed the more mixed results in Europe which saw French manufacturing still below 50, signalling contraction.
– So at the close the Dow was up 96 points of 0.62%, the Nasdaq rose 0.56% while the S&P 500 rose a more subdued 0.32%. Of note, in US data, jobless claims printed at 350,000.
– In Europe, stocks were higher with the FTSE up 0.58%, the DAX up 0.69% and the CAC up 0.36%. In Milan, the FTSEMIB rose 1.28% while in Madrid the IBEX was up 0.88%.
– On the Sydney futures exchange, the SPI 200 contract is up 9 points to 5379 bid. On the bond boards, the 3- and 10-year contracts are 3 and 3.5 points lower as bond yields around the world rose a little overnight. US 10-year Treasuries closed at 2.51%.
– On Forex markets, the US dollar lost further ground with the euro (1.3796) making a high at 1.3825. Sterling (1.6199) also made a high of 1.6222 while USDJPY(97.34) fell to a low of 97.15.
– So while the Aussie remains under pressure at 0.9608, the overall USD loss dragged it off a low of 0.9569 which was right on trendline support as you can see here.
– On Commodity markets, Nymex crude held $97 overnight, gold was up $16 (on the back of the USD more than anything) at $1350, while copper closed at $3.27 lb. The Ags were fairly quiet for a change but the ANZ put out a report yesterday saying that, “Global wheat prices are likely to have bottomed for the 2013-14 marketing year, hitting a seasonal low
in August and September” – good news for farmers.
On the data front we get CPI data, Singaporean industrial production, German IFO tonight, UK GDP, Brazilian trade and then US durable goods orders. It also appears that South Korean GDP data is out tomorrow morning.