Here's Your 20-Second Guide To What Aussie Traders Will Be Talking About This Morning

Friday morning market updates are the best updates.

– Markets decided they might have over-reacted to the Fed taper and Yellen’s guidance on rates overnight with US markets higher and the US dollar unable to hold onto peak gains. Some reports are also saying that it was the strong data, particularly the Philly Fed Indexes’ jump to 9 from -6.3, that drove stocks higher. That’s probably true but it also reinforces why the Fed is still tapering and why the FOMC members think rates will be higher in 2015 and 2016. Just something to think about.

– On the Crimean front, as the Russian Lower House votes to annex Crimea, President Obama has stepped up pressure by targeting Russian President Putin’s Inner Circle with sanctions.

– So at the close, the Dow has a triple-digit gain of 109 points for a rise of 0.67% to 16,331. The Nasdaq is up 0.26% and the S&P 500 is up 11 points to 1,872 for a gain of 0.6%.

– In Europe, the FTSE fell 0.47% and in Madrid the IBEX 35 fell 0.13% but across the rest of the Continent, stocks were higher with the Stoxx 600 up 0.11% to 328. The DAX rose 0.2%, the CAC is up 0.46% and the FTSE MIB in Milan rose 0.56%.

– Here at home, the June SPI 200 contract on the ASX Futures market is up 17 points to 5312.

– On currency markets, the Aussie dollar has found support at an up-sloping trend line again overnight and traders will be watching that into week’s end. It sits at 0.9027 this morning, down 0.1%. Elsewhere, the euro has lost more ground, down 0.41% to 1.3774 but the ANZ reckons it’s a buy in a note released overnight. The pound is lower and is also on trendline support at 1.6497 this morning. USDJPY rose 0.11% to 102.41.

– The Chinese yuan continues to weaken, with USDCNY rising to 6.23 this morning – we’ve had a look at the impact on Australian business here.

– On commodity markets, Gold came back from a low around $1319 to sit at $1,326 this morning, down 0.81%. Copper pulled back after yesterday’s big bounce from the lows and sits at $2.98 lb, down 1.72% this morning. Crude has also slipped back under $100 Bbl, losing 0.94% to $99.38. On the Ags, there was a reversal of fortune with Corn down 1.85%, Wheat off 1.68% adn Soybeans up 0.17%. The Oats and Coffee sell off continued down 4.7% and 5.8% respectively.

On the data front, it is a very quiet slide into the weekend with only an Australian leading index of growth and eurozone current account and consumer confidence to trouble the scorers.

Here is Ric Spooner’s Stock to Watch Today:

The market was underwhelmed by yesterday’s profit result and guidance that gross margin is likely to be flat in the 2nd half.

Myer gapped below its 200 day moving average and another test of the $2.40 support area is now in prospect. Whether Myer can hold this support, especially after it loses its 9c dividend looms as a key test of investor support.

Ric Spooner, Chief Market Analyst CMC Markets

Follow Ric on Twitter @ricspooner_CMC

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