Your morning market update, where the Aussie just won’t be kept down.
– US consumer confidence rose to 82.3 which was much better than expected and also a six-year high for the conference board measure, while the Case Shiller home price index was a little weaker at 13.2% year on year. New home sales printed 440,000 units in February, down a little on the 445,000 expected.
– So at the close of trade, the Dow is up 91.1 points or 0.5%, the Nasdaq is up 0.1% and the S&P 500 is up 8 points to 1865.6 for a 0.4% gain.
– European shares ignored the weaker-than-expected German Ifo data (110.7 for climate and 106.4 for expectations) and rose strongly, with miners like BHP and Rio doing well in UK trade. At the close, the FTSE was up 1.3%, the DAX rose 1.62% while the CAC was 1.58% higher. In Spain, the IBEX 35 was more subdued, rising 0.79% while in Milan, stocks closed up 0.95%.
– Locally, the ASX SPI 200 June contract in overnight trade has risen 21 points to 5359 bid.
– Worth noting, although it hasn’t had any impact on overnight trade or the Aussie dollar, is yesterday’s fears about the collapse of a small Chinese bank.
– On interest rate markets, US 10’s are down 1 point to 2.73% with UK 10’s around the same level. Bunds sit at 1.58%. In local interest rate futures trade, the June 3-year bond sits at 96.97 (3.03%) while the 10-year is at 95.90 (4.1%)
– On FX markets, the euro sits at 1.3802 down a little while sterling is back above 1.65 up 0.15%. USDJPY is at 102.28 but the Aussie is the major winner as it just keeps on keeping on, up at 0.9171 this morning. The RBA won’t like this move but it seems there’s not much they can do about it.
– On Commodity markets, Copper was the big gainer overnight, up 6 cents a pound to $2.05 for a 2% rise. Nymex Crude was largely unchanged at $99.50 Bbl while Gold sits back in the doldrums at $1312.90 oz. On the Ags, Corn fell 0.92%, Wheat fell 0.59% and Soybeans were 0.16% higher.
On the data front today, it is once again very quiet but RBA Governor Stevens is talking tonight. Gfk consumer confidence is out in Germany tonight before mortgage applications and Durable Goods in the US.
And now from CMC Markets’ Ric Spooner is today’s Stock of the Day
Internet Service provider TPG Telecom unveiled a strong profit result yesterday. This appeared to have had a knock-on effect for rival iiNet which broke out of a bullish “flag” chart pattern.
Press commentary earlier in the week had again discussed the possibility of TPG making a move to buy iiNet.
Ric Spooner, chief market analyst, CMC Markets
You can follow Ric on Twitter @ricspooner_CMC