– Stocks recovered a little of the previous days losses in US trade overnight as a little bit of bottom picking, less bad data in terms of US factory orders (-1.5%) and a decent New York ISM (64.4) saw the bearishness that seemed all-pervasive just 24 hours ago abate.
– At the close the Dow is up 72 points or 0.47% to 15,445. The Nasdaq is up 0.88% and the S&P has recaptured 13 points or 0.79% and sits at 1,755. Worth noting is that technically last night’s move was likely given the extreme falls of the previous trading days. A few more days and a solid non-farm payrolls on Friday might be needed to heal market wounds.
– In Europe, the US recovery at the open helped drag stock markets off their lows. The FTSE fell 0.26%, the DAX fell 0.64% while stocks in Paris, Milan and Madrid all rose 0.23%, 0.60% and 0.29% respectively.
– Locally on the ASX Futures market overnight, the March SPI 200 contract is down 10 points to 5040 bid. On the bond boards, the 3’s fell another 6 points overnight to 97.03 (2.97%) while the 10’s lost 6.5 points to 96.005 (3.995%). Offshore US 10’s lost 4 of the 6 points they gained the night before, rising back to 2.63%. Of note overnight was Richmond Fed president Jeffrey Lacker saying the Taper would continue.
– On global FX markets, the Aussie was the standout, rising 2.06% to 0.8932 this morning, which is more than 200 points above yesterday’s low of 0.8728. That was on the back of an apparent change in stance from the RBA yesterday. Elsewhere, the better tone in markets saw USDJPY rally 0.63% to 101.62 while the Turkish lira rallied to 2.24 against the US dollar. GBP and euro were fairly quiet and sit at 1.6320 and 1.3515.
– On Commodities, Gold slipped back a little to $1,255.70 for a small loss of 0.37%. Nymex crude rose 0.99% to $97.38 while Dr Copper rallied 2 cents to $3.22 lb. On the Ags, Corn bounced 1.32%, Wheat roared 3.95% higher suggesting a turn in the protracted bearishness in the grains, while Soybeans were 1.49% higher. Bitcoin sits around $930, basically unchanged and much less volatile than was the case last year.
On the data front today, Kiwi employment data is out along with AiG PSI in Australia. Indonesian GDP will be interesting and we also have a raft of Markit Services PMI’s tonight in Europe and ISM non-manufacturing in the US. Also out are EU retail sales and the ADP employment report in the US will be watched closely for a guide to non-farms on Friday.