Friday, it’s Friday. Here’s your morning market update:
– A better night for markets with US stocks and the US dollar higher after US Q4 GDP and personal consumption printed on expectations. This helped ease fears for the moment, so gold has been pushed sharply lower and the Aussie dollar is higher.
– Looking at specifics, the preliminary US Q4 GDP printed 1.3% for Q4 which is pretty good all things considered, and personal consumption during the quarter rose 0.7%. Both data suggest the economy has entered 2014 with genuine momentum but the big 8.7% fall in pending home sales last month – even taking the weather into account – and the increase in initial jobless claims to 348,000 is a cause for concern.
– So the Dow has rebounded from a weak January but will still finish weakly for the month. It’s up 0.69% at 15,847.51. The Nasdaq is 71.69 points higher for a gain of 1.77% with Facebook leading the charge with a 14% rally. The S&P 500 is up 1.12% or 20 points to 1,794.15.
– In Europe, stocks were also higher on the continent with the DAX up 0.39% and the CAC 0.55% higher. Stocks in Milan and Madrid up 0.39% and 0.70% respectively. But in the UK stocks were a little lower, down 0.10%.
– Locally futures trade on the ASX shows the SPI 200 is up 15 points to 5153 bid. But better stock performance has taken some of the safe haven bid out of global bonds so the 3- and 10-year bond contracts have fall 4 and 2.5 points respectively to 97.11 (2.89%) and 96.03 (3.97%) respectively.
– On FX markets, the US dollar was stronger which pushed the euro and pound lower. The euro lost 0.8% to 1.3552 while sterling lost 0.49% to 1.6479. Reflecting these moves, USDJPY is up 0.39% to 102.68 while the Aussie dollar is also up around half a percent to 0.8781.
– On commodity markets, Gold is clearly trading as a risk on/off switch losing 1.49% at the close but it mad a low around $1236 before bouncing back to $1243 oz this morning. Crude is up 0.75% to $98.09 but copper lost another cent to $3.24 lb. Corn rose 1.40%, Wheat is up 0.36% and Soybeans rose 0.45%.
On the data front, the Chinese New Year leaves that market out for the day and Korea and Hong Kong are also out. In Japan there is a raft of CPI data along with industrial production, unemployment, vehicle production, housing and construction.
Today in Australia we see private sector credit, while tonight in Germany retail sales are to be released along with EU CPI. In the US Chicago PMI, personal spending and consumption are out.