Your morning market update could be more exciting. Sorry about that.
– The S&P and Nasdaq are in the black this morning but the Dow is down because IBM has weighed on the index and is down around 3%. Other than that it has been a pretty boring night for stocks and MarketWatch reported that Jonathan Krinsky, chief market strategist at MKM Partners, said that “today (overnight) is the 4th narrowest range for a non-holiday week in the last 5 years”.
– So a fairly boring stock performance, with the Dow down 0.25% to 16,373, the Nasdaq up 0.41% and the S&P 500 up 0.07% to 1845. This is the highest closing level in the Nasdaq since July 2000.
– In Europe, stocks were down across the board, with the FTSE off 0.12%, the DAX losing 0.10% and the CAC in Paris eking out a tiny gain of 0.03%. In Milan, stocks fell 0.19% while in Madrid the early 2014 strength in the Spanish market reversed a little with the IBEX 35 falling 0.75%.
– In overnight trade on the ASX, the SPI 200 March contract fell 21 points to 5258 bid with the miners’ weakness yesterday no doubt weighing on the market once more. On the bond boards, yesterday saw a big readjustment in the market after the much higher-than-expected inflation result. The general consensus from the economists seems to be that the big spike questions the notion the RBA will ease again and that Australia is a low inflation economy. The 3’s in overnight rest at an implied yield of 3.03%, while the 10’s are at 4.14%.
– On FX markets, the big mover was sterling, which drove sharply higher after the unemployment rate unexpectedly fell to 7.1%. GBP is up 0.63% to 1.6576. Euro is around the same levels as yesterday at 1.6546 while the yen sits at 104.46. The Aussie is much stronger over the past 24 hours after the inflation data yesterday saw a very strong rally away from prices which were back near 3-year lows. Interestingly there was no real follow-through buying overnight and the Aussie sits at 0.8853 this morning.
– On commodities, Morgan Stanley cut their gold forecast overnight to $1160 for 2014 and $1138 in 2015. It didn’t have too much impact on prices though, as Gold rests around $1240 oz this morning. Crude was up another 1.91% to $96.78 while Copper sits at $3.37 lb. The Ags were fairly quiet with Corn up 0.29%, Soybean 0.04% and Wheat falling 0.18%. Bitcoin sits at $935.
On the data front, it is going to be a big day with the release of the preliminary HSBC Chinese PMI and then a raft of PMIs around the world tonight. In the US, jobless claims will be important tonight.