– It is all about Apple today as the market awaits what it hopes will be a solid results, but there is also some talk about the rise in margin debt on the NYSE and the risk this poses for the market. There are competing points of view obviously but here is a good BI take on things.
– It all added up to a fairly rangy day which at the end was essentially unchanged for the big markets in the US. At the close, the Dow was 0.01% lower, the Nasdaq 0.09% lower and the S&P 500 was 2 points or 0.13% higher at 1762. Data-wise in the US, home sales were disappointing, but then that’s to be expected with the recent political uncertainty and the spike in rates – both of which have been corrected.
– In Europe, the FTSE was up just 0.07% and the DAX fell a similar amount, down 0.08%. The CAC, however, was down 0.48%. Most focus is of course on the massive storm that has buffeted the UK and the west coast of Europe and which likely disrupted trade and kept traders at home.
– During overnight trade on the Sydney Futures Exchange the SPI200 still managed to eke out a 2-point gain to 5431 bid, which is remarkable after such a strong gain yesterday. On the bonds, the 3’s were up 2 points and the 10’s 1 in what was fairly quiet trade in global interest rate markets.
– On Forex markets, the Aussie held up reasonable well in Asian trade above 96 cents but has slipped back to 0.9572 for a small loss on the day. It was a similar story for the Euro (1.3793), GBP (1.6148) and USDJPY (97.65). The Fed will be the big catalyst this week for any moves.
– On Commodity markets, just when everyone started talking about lower petrol in Australia, Crude rallied 0.74% and is back at $98.57, Gold was essentially unchanged at $1353, Copper closed at $3.26. The Ags were up to their usual volatile ways with Corn down 2.05%, Wheat down 1.41% and Soybeans dropping 2.21%. Bitcoin’s rally continued and it sits at $208 this morning.
On the data front today, RBA Governor Glenn Stevens is talking at 9.30am at an Australian and New Zealand Investment conference. In Japan we get retail trade, India has an RBI decision due, while in the US tonight we get PPI, retail sales, Case Shiller house prices and consumer confidence.