DOW

The Australian equities are pointed to a flat open for the start of the week after US stocks drifted in and out of positive territory throughout the overnight trading session.

The Dow (see above chart) closed up 22.6 points at 12231.11, while the S&P500 index inched up 0.5 points to finish the week at 1285.09. Friday’s small gains came a day after the Dow surged more than 300 points as investors praised a European plan to combat Greece’s debt issues, expand a bailout facility and recapitalize the region’s biggest banks.

On the open of the US markets economic data released showed that  personal income grew just 0.1 per cent in September but consumers increased spending by 0.6 per cent while the US gross domestic product rose by 2.5 per cent in the third quarter, the fastest rate of increase since the third quarter of 2010.

The AUDUSD finished the week sharply higher at 1.0708 as risk sentiment was boosted by new European measures designed to curb the effects of the region’s debt crisis

The volatility index continued to trade off overnight closing on its lows of 24.53, this is the lowest level it has traded since the start of August.

The US Federal Reserve, European Central Bank, and Reserve Bank of Australia all have interest rate announcements scheduled over the next three days.

Source

Bloomberg, Dow Jones News

Dow

The Australian equities are pointed for a strong start to the trading day after European and US shares surged as investors applaud the agreement reached by the European lawmakers in their bid to resolve
the European sovereign debt crisis.

The Dow (see above chart) finished up 339.51 points at 12208.55 moving above the 12000 level for the first time since early August while the S&P500 index rallied 42.59 points to close the session at 1284.59.

The EURUSD rose the most since March 2009 briefly trading through the 1.4200 level for the first time since early September after private investors agreed to take a voluntary 50 per cent write down on their sovereign Greek bonds. The firepower of the euro-zone bailout fund will be increased to about $1.4 trillion and Greece will work to reduce its debt to 120 per cent of gross domestic product by 2020.

Both the Aussie and the Kiwi rose to a seven week highs against the USD after the European agreement helps investor sentiment supporting the demand for higher yielding assets. The AUDUSD trading up from yesterday lows of 1.0390 to as high as 1.0756.

WTI oil surged over 4 per cent trading up from lows of 90.78 to near three month highs of 94.31 after data released showed that the US economy grew by its highest level in a year.

The volatility index has traded off over 14 per cent at 25.46 which is the lowest it has been for 13 weeks.

Source

Bloomberg, Dow Jones News

NZDUSD

The Australian equities are pointed for a positive start to the day after a volatile US session overnight which saw stocks pushed higher in late trade as investors grow some confidence that the European leaders commitment to preventing a banking crisis and Chinese purchases of euro-zone debt could help resolve the region’s sovereign debt woes.

The Dow rose 162.42 points to close the trading day at 11869.04 while the S&P500 index gained 12.95 points to finish the session at 1242.00.

The NZDUSD (see above chart) has traded up form overnight lows of 0.7914 to recent highs of 0.8005 after the Reserve Bank of New Zealand held its Official Cash Rate steady at 2.50 per cent given ongoing global economic and financial risks but Governor Alan Bollard said that future cash rate increases are likely if global developments have only a mild impact on the country.

Gold continued to advance to a one month highs trading up from overnight lows of 1702.5 to recent highs of 1726.45 extending on its longest rally since August.

WTI crude dropped the most in more than three weeks after a government report showed larger than projected gain in US stockpiles. WTI traded down over 3.2 per cent to lows of 90.12.

The volatility index dropped over 7 per cent overnight as investors get some confidence back on the prospect of a resolution in the European area.

Source

Bloomberg, Dow Jones News

USDJPY

The Australian equities are pointed to a weaker start on the open today as hopes for a solution to the European debt crisis faded following the cancellation of a scheduled meeting for the European Union
lawmakers.

The Dow fell 207 points to close 11706.62 while the S&P500 index lost 25.14 points to finish the trading day at 1229.05. Each of the index’s 10 sectors dropped.

The selloff followed a report that a Wednesday meeting scheduled for the EU finance officials were cancelled, although a scheduled summit among European leaders seeking a way out of the debt crisis is still planned.

The yen once again touched a post World War II high against the USD and rallied against the majority of its trading counterparts as investors sought cover in the currency as a safe haven. USDJPY (see above chart) traded down from overnight highs of 76.32 to as low 75.74.

WTI crude oil continued to trade up and settled at 93.17, this is its highest levels in nearly three months on strong fund buying encouraged by tightening US oil inventories.

Gold traded up to one month highs of 1705.22 as the precious metal broke ties with riskier assets due to the uncertainty over the upcoming European Union summit.

The volatility index rallied over 10 per cent to close the session above 32.00.

Source

Bloomberg, Dow Jones News

EURUSD

The Australian equities are pointed to a reasonable start for the trading day after US stocks closed higher on the back of continued solid company earnings and rumours of another possible round of easing from the Federal Reserve.

The Dow advanced 104.83 points to settle at 11913.62 while the S&P500 index added 15.94points to close at 1254.19. Investors reacted positively to a set of merger announcements and were heartened by the lack of negative news out of Europe.

The EURUSD (see above chart) traded up from overnight lows of 1.3823 to recent highs of 1.3953 on increasing speculation that European lawmakers are finalising a deal to boost the euro zone’s bailout fund.

USDJPY has finished the overnight session near its lows dispute the Japan’s finance minister vowed to take “resolute action” on the strong yen.

Gold rose for a second day running tracking the gains in other commodities as renewed optimism for growth in China boosted prospects for raw materials.

WTI oil rose to a two month high after inventories fell at key US delivery points. WTI traded up from overnight lows of 87.47 to as high as 91.81, this represents a gain of 4.4 per cent gain.

The volatility index closed below 30 points for the first time in over a week a investors gain confidence that euro zone leaders were nearing an agreement on bank recapitalisation.

Source

Bloomberg, Dow Jones News

Dow

The Australian equities are pointed for solid start to the week after US stocks surged on Friday evening on the back of some solid corporate earnings and optimism that the European lawmakers are nearing an agreement.

The Dow (see above chart) rallied 267.01 points to finish the session at 11808.79, ending the week up 1.4 per cent  while the S&P500 index gained 22.86 points to close at 1238.25, this is its third-consecutive week of gains and longest winning streak since February.

The yen surged to a record high against the dollar Friday, trading down from highs of 76.91 to as low as 75.83 as the Japanese cabinet approve the expansion of a nearly Y12 trillion plan to help companies contend with the rising yen prompted traders to question the country’s resolve to halt its rise.

WTI crude oil rose from lows of 85.98 on Friday evening to as high as 88.93 per barrel on renewed hopes for a solution to the sovereign debt crisis with European leaders meeting this weekend.

Gold rose for the first day this week trading up from lows of 1620 to as high as 1649.65 as a weaker dollar and optimism about Europe’s debt crisis drew some buyers to the downtrodden markets.

The volatility index finished the final day of the week down 9.95 per cent to close at 31.32.

Source

Bloomberg, Dow Jones News

EURUSD

The Australian equities are pointed for a small gain on the open of the market today after US stocks rallied late in their session in volatile trading conditions on the back of continuing worries about the European sovereign debt.

The Dow finished the session trading up 37.16 points at 11541.78 while the S&P500 index settled at 1215.39. Stocks moved higher mid US trading session after French President Nicolas Sarkozy and German Chancellor Angela Merkel issued a joint statement pledging that European Union leaders would have a bailout plan in place by Wednesday.

The EURUSD (see above chart) traded as high as 1.3845 only to drop to lows of 1.3636 in erratic trading as investors don’t show any signs of taking any comfort from European leaders’ moves to contain the euro zone’s debt crisis.

Gold fell the most in two weeks as commodities in general declined on concern demand for raw materials may slow as Europe struggles for a solution for their current debt crisis.

WTI oil future prices ended an erratic day lower on Thursday due to worries over weak U.S. oil demand and the prospects for progress in resolving the euro zone’s debt crisis.

Source

Bloomberg, Dow Jones News

EURUSD

The Australian equities are pointed for a drop of about one per cent on the open of the market today after US stocks slid into negative territory on the back of the Federal Reserve’s gloomy assessment on the U.S. economy.

The Dow fell 72.43 points to finish the session at 11504.62 while the S&P500 index lost 15.50 points at 1209.88. Both Indices had been in positive territory prior to the release of the Fed’s “beige book” report of economic activity around the country, but quickly sank to hit the day’s lows as investors pared back risk in line with the central bank’s cautiousness on the domestic economy.

The EURUSD (see above chart) turned negative in the overnight session trading down from highs of 1.3871 to lows of 1.3732 after the latest plan for Europe’s bailout fund weighed on the common currency.

WTI oil fell from one month highs of 89.66 to lows of 85.98 per barrel after a split emerged between France and Germany on the proposals to increase the European bailout fund and the negative outlook from the Federal Reserve on the US economy.

The volatility index traded up from lows of 32.00 to as high as 35.55 overnight showing that investors are showing signs of nervousness ahead of the European lawmakers meeting during the weekend.

Source

Bloomberg, Dow Jones News

EURUSD

The Australian equity market is set for a positive start to the day after overnight positive lead overnight on the back of a report showing that France and Germany had agreed on a EUR2 trillion plan to combat Europe’s sovereign debt crisis.

The Dow rose 180.05 points to finish the session at 11577, after earlier falling as much as 101 points while the S&P500 index gained 24.52 points toclose at 1225.38. Each of the index’s 10 sectors traded in positive territory.

The EURUSD (see above chart) finished the session flat after a reasonably volatile session trading as low as 1.3653 after Moody’s Investors Services cut Spain’s government bond rating only to spike to highs of 1.3818 after the UK Guardian cited unnamed European Union diplomats as saying that the euro zone’s two largest economies had agreed to boost the bailout facility of the 17 nations that use the euro to EUR2 trillion.

Gold fell for a second day as weaker than expected growth in China and worries about the euro-zone kept investors focused on holding cash instead of precious metals. Gold traded down from yesterday highs of 1677.05 to lows of 1627.50 only to bounce on the back of rallying equities late in the session.

WTI oil advanced to their highest level in a month overnight, trading up from lows of 85.60 to as high as 89.05 after shrugging off concerns about weakening Chinese economic growth.

Source

Bloomberg, Dow Jones News

Dow

The Australian equity market is set for a weak open today as US stocks plunged overnight on investors concern that the progress in negotiations to resolve the European sovereign debt issue has stalled and will not be able to be completed by the end of the euro-zone summit on Sunday.

The Dow (see above chart) lost 247.49 points to close the session at 11397.00, finishing near its lows. This loss has pushed the Dow back into the red for the year. The S&P500 index shed 23.72 points to finish the day at 1200.86. All S&P 500 sectors lost ground.

The negative tone for the overnight session was set before the US open when German Chancellor Angela Merkel said it will be impossible to resolve every sovereign-debt problem at a euro-zone summit Sunday. The EURUSD dropped from highs of 1.3916 to recent lows of 1.3728.

The AUDUSD traded down from highs of 1.0372 to lows 1.0159 on investor’s concerns about the state of the European economy.  Today the RBA will release the minutes of its meeting on Oct 4^th where Governor Glenn Stevens signalled that there is more scope to cut interest rates if necessary.

Gold fell from three week highs of 1695.85 to lows of 1665.20 as the dollar’s rally reduced demand for the metal as an alternative asset.

The volatility index bounced off lows of 28.15 and traded up over 18 per cent to close on its highs at 33.39.

Source

Bloomberg, Dow Jones News