Your morning market update has a new Fed chair:
– Janet Yellen has made a great start to her tenure as Fed chair, with markets applauding her calm resolve to continue with the path that she and the rest of the Fed set under previous chair Ben Bernanke. She noted “I expect a great deal of continuity in the FOMC’s approach to monetary policy.” You can read more on her testimony from BI USA here.
– So at the close, the Dow is up 189 points for a rise of 1.2%, the Nasdaq is 41.1 points higher and the S&P has roared through 1800 rising 19.5 points to 1819.
– In Europe, stocks roared higher as well with the FTSE up 1.24%, the DAX rising 2.04% and the CAC 1.08% higher, a figure that was replicated in Madrid with Milanese stocks up 1.04%.
– Locally on the ASX Futures overnight, the SPI 200 March contract is up 45 points to 5247 bid. On the bond boards, global traders weren’t so keen to hear that a steady hand is on the tiller and that the taper would continue. So US 10’s rose 5 points to 2.72% (still a great result really), UK 10’s were up 3 points to 2.75%. Locally, the 3’s rose 3 points to 96.91 (3.09%) and the 10’s were up 4.5 points to 95.83 (4.17%).
– On global FX markets, it was another day of strong AUD gains after the NAB Business survey and home loan and housing data. Many commentators liked to focus on the number of loans – which was down – but it’s the value which caught our eye and likely the RBA’s as well. So this morning the AUDUSD is up 0.97% to 0.9035. The euro is down a smidge at 1.3635, GBP is up 0.3% to 1.6449 while the USD gained against the yen, with USDJPY rising to 102.64.
– On commodities, Gold’s rally continued with the break of the recent high emboldening bulls and it’s up another 1.2% to $1291.80 this morning. Nymex crude is holding near $100 Bbl at $99.87 this morning while Dr Copper is down a cent at $3.26 lb. On the Ags, Corn fell 0.34%, Wheat rose 0.94% and Soybeans rose 0.7%.
On the data front today we get the Westpac-Melbourne Consumer Confidence data , machine orders out of Japan and loans and trade from China. Tonight the focus will be on the BoE inflation report and Governor Carney will speak. Indian industrial and manufacturing output will be released.
Mario Draghi’s speech tonight will also be keenly awaited.