The Australian equity market is pointed to another mixed start to the trading day after US stocks edged up with the Dow finishing slightly higher than the psychological level of 13000.

The Dow finish the session up 23 points at 13005.12 while the S&P500 index gained 4.59 points to settle at 1372.18.

On the economic front a report issued from the Conference Board showed that the US consumer confidence unexpectedly jumped to a one year high in February, gaining to 70.8 from an upwardly revised 61.5 in the previous month. However the Commerce Department reported that durable goods orders slumped 4 per cent in January, logging its biggest slide in almost three years.

The euro has strengthened against both the dollar and the yen on speculation that the European Central Bank allotment of three year loans to banks tomorrow will bolster investor appetite. EURUSD (see above chart) has traded up from overnight lows of 1.3390 to recent highs of 1.3469.

Gold continues to advance trading up from overnight lows of 1767.5 to as high as 1790 as investors look from an alternative to the weakening dollar.

WTI Oil continued to trade to the downside dropping over 1.75 per cent to as low 106.30 following the durable goods report.

The Volatility Index which is widely considered the best gauge of fear in the market traded down slightly but still closed above 18.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a mixed start to the trading day after US stocks finished flat after Moody downgrades during the European session.

The Dow finish the session up 8 points at 12969 while the S&P500 index gained 1.85 points to settle at 1367.59.

On the economic front US home sales gained over 2 per cent to 97.0, surging to a two year high in January.

The euro was weak against the majority of its trading counterparts as Moody’s Investors said that the Greek default risk remains high after the nation formally asked investors to exchange their holdings of government debt for new securities last week. EURUSD traded down from overnight highs of 1.3468 to as low as 1.3365.

WTI crude oil (see above chart) has traded down from overnight highs of 109.43 to as low as 107.31 as investors look to profit take on the 15 per cent rally over the past month.

Gold has declined for the second session in a row as the rising US dollar curbed demand for the metal as an alternative investment.

The Volatility Index which is widely considered the best gauge of fear in the market, closed above 18.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a flat start to the trading day after US stocks finished mixed although the S&P Index (see above chart) finished the week on its highest level since June 2008.

The Dow finish the Friday night session down 13 points to finish the trading week at 12961 while the S&P500 index gained 2.28 points and closed at 1365.74

On the economic front, the US consumer sentiment index gained to 75.3 in February, this is its best level in almost a year while new home sales declined 0.9 per cent in January to a seasonally adjusted 321,000-unit annual rate.

The euro has continued to trade to the upside against the majority of its trading counterparts as the agreement on the second bailout for Greece reduces investor’s concerns that the regions debt crisis will worsen.  The EURUSD traded up from overnight lows of 1.3358 to as high as 1.3490.

The AUDJPY rose for the eight consecutive weeks as RBA Glenn Steven’s commented that the monetary policy is about right reducing speculation that there will be further interest rate cuts in the near future. AUDJPY traded up from overnight lows of 86.09 to recent highs of 87.08.

WTI crude oil traded up from overnight lows of 107.98 to settle at 109.77 a barrel, recording its fifth weekly gain as investors fear that the cuts in Iranian supply will have an ongoing effect in Europe.

The Volatility Index, widely considered the best gauge of fear in the market finished the week at 17.31.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a positive start to the trading day after a late rally in the US equity market on the back of better than expected US economic data.

The Dow finished the trading session up 47 points to close at 12984.76 while the S&P500 index finished up 5.78 points at 1363.44.

Earlier in the trading day European shares finished lower after an EU official said the region’s economy is heading for its second recession in three years.

The euro reached a ten week high against the USD after a report released in Germany showed that business confidence rose to the highest level in seven months amid progress in taming the regions debt crisis.

On the economic front the US labour department reported that claims for unemployment benefits were unchanged at 351,000, less than analyst’s forecasts of 354,000.

WTI crude oil (see above chart) traded up from overnight lows of 105.43 to recent highs of 108.12 after the positive jobs data out of the US and the weakening USD.

Gold continues to be buoyed up by Europe’s bailout deal with Greece as well as increasing concerns over global inflation amid oil hike. Spot gold traded up from overnight lows of 1772.0 to recent highs of 1787.37.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a slightly weak open to the trading day as overnight stocks ended lower amid ongoing concerns over the euro zone debt crisis.

The Dow finished the trading session down 26.64 points at 12938.90 while the S&P500 index closed down 4.57 points at 1357.63.

Fitch ratings agency cut the Greek sovereign debt to “C” from “CCC,” saying that a default is “highly likely in the near term.” The downgrade comes after the debt-ridden nation secured a second bailout Tuesday.

On the economic front the Chinese manufacturing sector contracted for the fourth month in a row in February while weaker than expected PMI data was reported out of Germany overnight.

The pound declined from overnight highs of 1.5866 to recent lows of 1.5650 after minutes of the BOE meeting showed that two policy makers wanted a larger increase in asset purchases than the amount finally agreed.

Gold (see above chart) has continued to trade higher on speculation that the US will extend a stimulus to bolster the economy by continuing to exchange short term debt with longer term treasuries. Gold traded up from overnight lows of 1749.5 to recent highs of 1780.5.

The Volatility Index, widely considered the best gauge of fear in the market, traded above 18.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a mixed start to the trading day after US stocks ended flat in choppy trading conditions as investors were quick to take profits after the Greek bailout package was agreed.

The Dow finished the trading session up 15.82 points at 12965.69 while the S&P500 index closed up 0.98 points at 1362.21.

The euro has traded down from overnight highs of 1.3294 to lows of 1.3200 after the Euro zone finance ministers completed a 130 billion bailout for Greece to avoid a default in March, in the deal private bondholders will take a greater loss while the Greek government will commit to deep cuts across the board.

Gold (see above chart) has advanced the most in more than three weeks as agreement on a bailout package for Greece boosting commodities in general. Gold traded up from lows of 1736.25 to recent highs of 1759.95.

WTI crude oil rose to a nine month high due to the after the confirmation of the Greek bailout package coupled with the ongoing issues out of the Middle East. WTI crude gained over 2 percent to finish the trading session at 106.14.

The Volatility Index which is widely considered the best gauge of fear in the market has finished the session on its highs of 18.70 after trading as low as 17.66.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a positive start to the trading day after the Euro zone finance ministers look to approve a second bailout for Greece that will resolve the country’s immediate repayment issues.

The US equities were closed overnight due to the Presidents Holiday. The German Dax Index (see above chart) finished up 102.5 points at 6945.

The euro strengthened the most in almost two weeks against the USD on continued speculation that the EU finance ministers were close to settling their differences over the Greek bailout. EURUSD has traded up from overnight lows of 1.3184 to as high as 1.3276.

On an economic front we have the minutes from the latest RBA meeting where they surprised the market and kept rates on hold. RBA Governor Glenn Stevens will also be speaking later in the day.

WTI oil rose to a nine month high of 105.44 after the Iran said that it halted some of its crude exports and investors positive sentiment that an agreement will fuel the demand for the commodity.

Gold has risen for the first time in three days as most commodities rose on the back of Chinese measures to sustain economic growth and the weaker USD spurred demand for the metal as an alternative asset.

Source
Bloomberg, Dow Jones News

EURUSD

The Australian equity market is pointed to a solid start to the trading week after more positive news out of Europe over the weekend.

The Dow finish the Friday night session up 45.79 points at 12949.87 while the S&P500 index gained 3.19 points and closed above key levels of 1361.23.

The Chinese central bank announced that the will cut the reserve requirement ratio for their banks by 50 basis points which reduces the amount of cash they must hold. Boosting their  lending capacity by an estimated 350-400 billion yuan.

On the economic front, US CPI numbers climbed in January as the prices in gasoline rose, according to the US Labour Department, logging its biggest gain in four months.

The euro strengthened against the majority of its trading counterparties on Friday evening on hopes that the complex negotiations over a new debt relief package for Greece were coming together ahead of the Monday meeting of euro-zone finance ministers. The EURUSD (see above chart) has traded up from Friday evening lows of 1.3114 to recent highs of 1.3202.

WTI crude rallied from Friday evening lows of 102.52 to recent highs of 104.05 as Iran reports that they have stopped exporting to French and British companies.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, ended below 18.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a solid start to the trading day after overnight equities rallied on the back of robust economic news out of the US.

The Dow finished the trading session up 123 points to 12904 while the S&P500 index gained 14.81 points to close at 1358.04

On the economic front US weekly jobless claims fell to the lowest point in four years posting a surprising drop of 13,000 to a seasonally adjusted 348,000, according to the Labor Department. Housing starts gained more than expected, climbing to 1.5 per cent. Meanwhile the Philadelphia Federal Reserve said its business activity index climbed to 10.2 in February.

The euro rallied against the USD after a report that the European central banks will exchange their existing Greek bond holdings for new ones in an effort to help the situation in the debt-ridden nation. The EURUSD (see above chart) traded up from lows of 1.2975 to recent highs of 1.3162.

In a choppy session the AUDUSD traded up from overnight lows of 1.0649 to recent high of 1.0774 after positive domestic employment numbers reported yesterday afternoon.

Gold rebounded off overnight lows of 1705.75 to rally to recent highs of 1730.05 as the USD declined against the euro increasing the demand for the precious metal as an alternative investment.

The CBOE Volatility Index, widely considered the best gauge of fear in the market, jumped above 20.

Source
Bloomberg, Dow Jones News

The Australian equity market is pointed to a negative start to the trading day after overnight equities fell following the US Federal Reserve’s meeting minutes, amid ongoing worries over Greece.

The Dow finished the trading session down 72 points to 12780.95 while the S&P500 index lost 7.27 points to close at 1343.23, earlier in the session trading as low as 1338.50.

The Federal minutes showed that a few of the officials felt that another round of bond buying would be needed before long to support the US economy.

The EURUSD has continued to show signs of weakness due to the ongoing issues in the trading down from overnight highs of 1.3194 to lows of 1.3042.

Gold rose for the first time in three sessions on news that the Chinese central governors pledge to help resolve Europe’s debt crisis boosted demand for commodities in general. Gold traded up from yesterday lows of 1718.75 to as high as 1737.85.

WTI oil (see above chart) has traded to one month highs after a report showed that Iran halted shipments to Europe and the US. The futures traded up from lows of 100.61 and peaked as high as 102.52 before settling at 102.05.

The Volatility Index, widely considered the best gauge of fear in the market, climbed over 10 percent to close above the level of 21.

Source
Bloomberg, Dow Jones News