Here’s your morning market update to end a crazy week. Read, then Friday:
– Lots to talk about today but the focus in markets is the non-farm payrolls in the US which will be released at 12.30am AEDT.
– A better night on global stock markets with all three of the main US indices up more than 1%. At the close the Dow has risen 1.21%, the Nasdaq rose 1.13% and the S&P 500 rose 21 points or 1.22% to 1,773. In futures terms, the S&P 500 contract sits at 1,766 and is retesting the 15-month trendline that it broke down from over the past week.
– In Europe it was also a positive night, even though the ECB left rates unchanged and Mario Draghi declared once again that Europe was not Japan when it comes to deflation. So there is no easing but in a classic door ajar, moment Draghi said, “lending is stabilizing: things may get better, or they may stay where they are. Or they may get worse”. Perfect!
– So at the close the FTSE is up 1.55%, the DAX rose 1.54% and the CAC was 1.71% higher. In Madrid, stocks roared 1.94%, while the FTSEMIB in Milan soared 2.28%.
– The ASX did well also with a strong rally in trade yesterday, with a further rise of 34 points in futures trade overnight which left the March SPI 200 at 5115 bid. That’s about 120 points over the low of just the day before in terms of futures trade.
– On global FX markets, euro bounced sharply to a high of 1.3619 before pulling back to 1.3585 for a gain of 0.4%, GBP was unchanged on the day, resting at 1.6318, while the better performance on stocks and risk appetite rose 0.68% to 102.12. The Aussie is also up, rising 0.58% after yesterday’s solid trade and retail sales data. It sits at 0.8960 this morning awaiting what the RBA might say about it in the quarterly Statement on Monetary Policy at 11.30am AEDT.
– On commodity markets, Nymex crude was up 0.46%, Gold largely unchanged at $1257 and Copper soared 4 cents to $3.25 lb. On the Ags, Corn was flat, Wheat fell 1.15% and Soybeans rose 0.7%.
Data tonight and today will be dominated by the RBA’s SoMP and then NFP in the US. We also have the AiG performance of construction index in Australia, the HSBC Chinese services PMI and German and French trade data. In the UK, industrial production and trade are out.
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