– More red across global stock markets overnight as stronger data in the US once again worried traders about the prospect of Dectaper at this months FOMC meeting. The second read of US Q3 GDP saw an upgrade from 2.5% to 3.6%, while at the same time jobless claims fell to 298,000, against expectations of 325,000 and personal consumption in Q3 was 2.0% slightly stronger than the 1.9% expected. Heightening tensions a little were comments from Atlanta Fed President Dennis Lockhart who said the Tape should be on the table at this month’s meeting.
– So at the close the mid day recovery faltered and stocks continued to weaken into days end and finished near the lows which is an ominous warning for Asian trade. . The Dow is down 0.43% to 15,820, the Nasdaq is off 0.12% at 4,033 and the S&P 500 is 0.44% or 8 points lower at 1,785.
– In Europe both the BoE and the ECB left rates unchanged and ECB President Mario Draghi said the ECB is still trying to figure out how to add further stimulus to the European economy and that they would “consider all available instruments”. But this didn’t help stocks with the DAX down 0.61%, the CAC 1.17%, Madrid 1.56% and Milan 1.75%. The FTSE was down a more benign 0.18%.
– On the ASX the close yesterday afternoon was very weak and the technical picture just awful. Overnight the market has slipped further and the SPI 200 contract at 7.15 AEDT sits at 5187 bid, down 22 points on the Dec contract. In continuation terms a move toward 5,065/75 is on the cards based on the technicals.
– On FX markets there was an insane response to no rate cut in Europe but strong growth in the US – Euro rose. that is not how its supposed to work and is frankly quiet weird when you look at the merging fundamental economic disparity between the two regions. But regardless Euro sits at 1.3672 this morning up 0.61%. GBP is performing what might be considered more normal and is down 0.28% to 1.6336 but the US dollar is under the pump against the yen with USDJPY slipping back to 101.64 for a loss of 0.68% on the day. The Nikkei will remain pressured today on this basis.
– The Australian dollar is stronger after another acute weak period after the trade data yesterday. It is establishing a solid support zone for the moment around the 90 cent region and while it is not out of the woods it is up 0.47% at 0.9071. To put this in context though the Aussie is trailing the Euro with EURAUD at its highest level since early 2010 above 1.50 at the moment.
– On commodity markets Gold slipped back losing the $20, which is a large part of what it gained the night before and it sits at $1228 this morning. Silver lost 1.44% to $19.49 oz. Nymex Crude was 0.27% at $97.46 Bbl, copper fell 2 cents to $3.26 lb and on the Ags corn fell 0.65%, wheat dropped 1.43% and soybeans fell just 0.15%.
– On Bitcoin there was a bit of a kerfuffle when the Chinese regulators banned banks from trading the coins which saw it fall from above $1200 yesterday to a low of $870 before recovering to $1140 this morning.
Datawise tonight is the big one with the release of non-farm payrolls. The market is currently looking for around 180,000 and a number around here or above 200,000 might make things interesting for traders tonight.
In Australia today we get the AiG performance of construction index, trade in France tonight, Factory orders on Germany and Brazilian inflation. Also out in the US is the unemployment rate, consumer credit and the Michigan consumer confidence number.