Your market update today includes good news from Germany and jobs data.
– It was a positive night and most stock markets were awash in green with stronger German factory orders (+3.3% v +0.5% expected), strong UK IP (+0.9% v +0.5% expected) and slightly better US leading indicators, all of which suggest that at least in the G4, things are on the improve.
– At the close, the Dow is up 126 points or 0.82% to 15,747, the S&P is up 7 or 0.40% to 1,770 but the Nasdaq is a little miffed and down 0.20%.
– Across the Atlantic, the DAX reacted to the strong German data by rallying 0.35%, while the CAC was up 0.79%. In Milan, stocks rose 0.90% and in Madrid the IBEX was 0.42% higher. In the UK, the FTSE was largely unchanged.
– Closer to home on the Sydney Futures Exchange, the SPI 200 contract rose 7 points to 5425 bid, which is a solid result and support has been strong on every dip so far this week. On the Bond boards, Dec 3-years were up 2 points and Dec 10-years up 2.5 points, reflecting the rally in US markets where the 10’s fell 4 points.
– On FX markets, the euro took a lift from reduced expectations of an ECB cut after the release of an MNI report suggested it’s not going to happen tonight and of course the strong German factory orders (even though EU retail sales were weak). This morning, the euro is up 0.36% to 1.3521, GBP rose 0.24% to 1.6082. USDJPY is up 0.19% to 98.68 while the Aussie dollar is 0.23% higher and breaking up through the resistance zone, sitting at 0.9528 after a high or 0.9542. Traders will be watching the employment data today.
– On Commodity markets, Bitcoin made a new all-time high overnight and sits at 265 this morning. Nymex Crude bounced a little up 1.6% on a lower-than-expected rise in stocks and the technicians reckon that the low is in for this run. Gold rallied just under $10 oz to $1316 but Copper fell again to $3.23 lb. On the Ags, the relative quiet largely continued – Corn fell 0.94%, Wheat fell 0.38% and Soybeans rose 0.3%.
On the data front, there is no bigger number for the Aussie dollar each month in Australia than the employment data and today is the day. The market is expecting a rise of 10,000 and an unemployment rate of 5.7%. Before that however, we get the AiG performance of construction index. In Europe tonight, German industrial production is due to be released before the BoE and ECB interest rate decisions. Then in the US we get preliminary GDP and jobless claims.