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

Getty/Spencer Platt

– It was a better night for stocks in the US. The ISM manufacturing index for New York ripped higher to 68.1 from 60.5 and is another sign that the US economic recovery is gaining a more solid footing. Also helping, according to NAB, was “Berkshire Hathaway shares that rose 3.1% after posting record quarterly profits. Doing no harm to investor sentiment, the Fed’s latest quarterly Survey of Senior Loan Officers released this morning reported “a continued easing of lending standards and terms for many types of loan categories amid a broad-based pickup in loan demand”.

– At the close the Dow was up 0.46% at 16,569, the Nasdaq rose 0.72% to 4,384 and the S&P 500 rose a solid 14 points for a gain of 0.72% to 1,939.

– In Europe the FTSE was largely unchanged but the DAX technical break continued with the index closing at 9,154, down 0.61%, despite the Portuguese government’s bail out of Banco Esporito. However the data on investor confidence released in the Sentix survey was not good, showing a drop to 2.7 from 10.1. Elsewhere the CAC rose 0.34% while stocks in Milan were up just 0.09%. Spanish stocks were down 0.17% – depressed by disappointing employment data.

– Locally the ASX futures market was up 4 points overnight with the SPI 200 at 5,488 this morning after a fall of 0.3% on the physical yesterday. The miners such as Arrium and Atlas Iron will probably have another good day though.

– In Asia yesterday even the most casual observer would be getting the notion that Shanghai shares are breaking out with the index moving 38 points or 1.73% higher to 2,223 – getting close to one year highs.

– Th Nikkei was down 0.31% at 15,475 but with USDJY in the mid 102 region and a more positive night on US markets it should do better today. Likewise the Hang Seng which was 0.28% higher in trade yesterday is likely to get a lift off the 24,600 close.

– US Treasuries were down a tick at 2.48% while German bunds rose one point to 1.14%. In the UK Gilts settled at 2.54% but Italian bonds rallied 6 basis points to 2.59%.

– On currency markets the Aussie was higher overnight to 0.9331 in a continuation of a little technically induced bounce. Euro is at 1.3420 and Sterling 1.6860. USDJPY is at 102.58. Boring!

– Iron ore for September leapt $1.42 tonne to $95.92 while September Newcastle coal climbed 55 cents to $69.85 tonne even though the news out of China suggested that Beijing is going to ban coal use in six provinces from 2020. More on that here.

– August Nymex crude arrested its recent free fall rallying 54 cents to $98.42 Bbl, gold is see-sawing in a range and sits at $1,288 while silver is at $20.17/oz and copper climbed 3 cents to $3.24 lb. The Ags were universally positive for a change with corn, wheat and soybeans up 1.77%, 1.82% and 1.44% respectively.

On the data front today the big one domestically is the RBA Board meeting and decision on interest rates. Virtually no-one expects the RBA to move today nor for the Governor’s statement at 2.30pm to materially deviate from the rhetoric of the post few months. Of interest though will be any jawboning of the Aussie dollar after the success the Kiwi’s had recently and comments about consumers and domestic growth. Trade and the AiG Performance of Services are also out.

Offshore the Markit and HSBC services PMI are out around the world along with EU retail sales tonight and US factory orders.

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