Overnight markets have rallied for the second session as rumours grow that the Chinese GDP numbers could be better than expected.

The Dow Index rallied 181 points to close at 12,986, just below the psychologically level of 13,000 while the S&P 500 jumped 18.86 points, to finish at 1,387. Earlier in the session European shares rallied with the Dax finishing up over 1 percent at 6743.

The US Labour Department announced that the weekly jobless claims increased by 13,000 to a seasonally adjusted 380,000, this is the highest level since January.

The Australian dollar rallied after employment increased more than analysts expected and China’s new yuan loans were the highest in over a year.

Spot gold prices jumped more than one percent overnight on hopes that the Fed might consider stimulus to the US. Spot gold traded up from 1651 to recent highs of 1680.

WTI crude oil (see above chart) continued to rise as a weaker dollar triggered buying of riskier assets and hopes for US Fed stimulus re-emerged after data showed jobless benefit claims rose last week.

The Volatility Index plunged over 14 percent to close near 17.

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/

Global stocks finished higher Wednesday evening, helped by the ECB indicating that they will assist with liquidity to stem the spread of the regions debt crisis

The Dow Index (see above chart) rallied 89 points to close the session at 12,805 while the S&P 500 gained 10.12 points to end at 1,368.71, earlier in the session European shares closed higher with the German Dax finishing the session up 0.51 percent after a European Central Bank official signalled they may be prepared to add more liquidity to the European financial system if needed.

The US Beige book summary showed that the economy expanded at a modest to moderate pace in recent weeks.

The AUDUSD dropped to 1.0227 which is its lowest point since the middle of January yesterday before bouncing to 1.0335. Today traders will be looking at unemployment figures.

WTI oil prices rose on Wednesday after the US government released data that showed domestic fuel stocks fell much more than expected last week.

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/

Overnight stocks posted their sharpest session decline this year, closing in negative territory for the fifth straight session amid concerns over the health of sections of the EU and the global economy in general.

The Dow Index fell 213 points to finish at 12,715, recording its fifth straight decline and largest one day drop this year, the S&P 500 slumped 23 points to close at 1,358.

The Australian dollar fell against both the USD and the yen as increased concern that Europe’s sovereign debt crisis is worsening, reducing the demand for the higher yielding risky assets. The AUDUSD (see above chart) traded down from yesterday highs of 1.0356 to recent lows of 1.0249.

Gold moved to a one week high overnight spiking up from lows of 1632 to recent highs of 1661 as investors worries deepen as Spanish and Italian bond yields surge spurring demand for the metal as a safe haven.

WTI crude oil falls to an eight week low on forecasts that the US supplies rose to the highest level for this time of the year in over twenty years couple with the continuing fear of a global slowdown.

The Volatility Index which is commonly referred to the fear index has jumped over eight percent in the last session to close above 20.

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/

Markets have opened up weak on Monday evening following after weaker than expected US employment numbers were released on the shortened trading Friday session.

The Dow Index declined for the fourth-consecutive session tumbling 130 points to end at 12,929 while the S&P 500 declined 15.88 points to close at 1,382.

The US economy added 120,000 jobs in March, this is far less than the 200,000 that most analysts were anticipating.  The soft data raises the possibility that the recent rebound in US jobs markets could be grinding to a halt.

Gold rallied almost one percent after the disappointing jobs data reviving speculation that the Federal Reserve might try to stimulate the US economy.

WTI oil fell in light volume overnight as revived talks on Iran’s nuclear program eased fears of supply disruption and on ideas slowing U.S. jobs growth may lessen demand for fuel.

The Volatility Index which is considered the best gauge of fear in the market, finished the trading session above 18.

Looking ahead traders will be focusing on the Australian Employment numbers on Thursday.

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/

Markets across the board have been weak after sentiment turned negative after the FOMC minutes yesterday reduced the odds of another round of Quantitative Easing from the US Federal Reserve and concern about the Spain’s debt.

The Dow Index traded up from its lows but still erased 124 points to close at 13,074.75 while the S&P 500 tumbled 14.42 points to finish at 1,398.96. Earlier in the session the German Benchmark plunged 2.84 percent to close at 6784.

On the economic front, private employers added 209,000 jobs in March, according to the ADP National Employment Report. Economists had expected a gain of 200,000.

The euro fell to the lowest level in a month against the USD after demand declined at the Spanish bond auction, adding to concern the region is still struggling to overcome its sovereign debt crisis. The EURUSD (see above chart) traded down form overnight highs of 1.323 to recent lows of 1.3110.

Gold fell to a 12 week low on signs that the Federal Reserve won’t provide additional stimulus to the US economy, boosting demand for the USD and therefor eroding the appeal of the metal and an alternative investment

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/

Stocks ended in negative territory after the latest Federal Reserve meeting minutes showed that policymakers toned down the likelihood for further quantitative easing.

The Dow Index fell 64.94 points to close at 13,199, snapping a three-day winning streak while the S&P 500 Index wipe away 5.66 points to finish the session at 1413.38.

After the Fed released their meeting for March which suggested that policymaker’s desire for another dose of quantitative easing has reduced significantly due to the continuing improvement in the US economy. Although members stated that they do remain cautious about a broad recovery, especially on the jobs front. Gold slumped the most in four weeks trading down USD$30 within minutes from highs of 1676 to as low as 1638.

The USD gained against to its strongest level in over a week against the euro after the Fed announcement trading down from session highs of 1.3342 to recent lows of 1.3210.

The AUDUSD (see above chart) has been weak since earlier yesterday following the RBA announcement that rates will remain at 4.25 percent, they did state that a rate cut is possible if inflation continue to slow.

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/

Stocks closed mixed on Friday night but both the Dow and S&P Index logged their best quarterly gain in almost 14 years.

The Dow Index finished the session up 66 points at 13212, logging its sixth-consecutive month of gains in addition to a stellar first quarter. The S&P 500 also finished up 0.37 percent at 1408.

On the economic front the Commerce Department released numbers that showed that consumer spending increased to its biggest gain in seven months, in addition the Michigan’s survey showed that consumer sentiment rebounded to its highest level in more than a year.

The yen fell against both the USD and the euro after a gauge of Chinese manufacturing was stronger than expected, damping the demand for safe haven assets. EURJPY traded up from lows of 109.47 to as high as 111.03.

After closing at 1.0345 on Saturday morning the AUDUSD (see above chart) has gapped over the weekend opening up over 90 points and is currently trading at 1.0445 on the Chinese news.

Looking ahead this week we have both the European Central Bank and Bank of England interest rate announcements, US Employment Numbers and FOMC Meeting minutes.

Source
Bloomberg, Dow Jones News

http://www.vantagefx.com/market-news/market-wrap/