Interesting night of consolidation with the data in Europe and the US neither really good nor bad.
German GDP printed as expected up 0.4% on the quarter for a 1.3% year on year result. The Case Shiller home price index printed 13.4% on the year but consumer confidence in the US was a little weaker than expected at 78.1 versus 80 expected and 79.4 last.
In the end US stocks were off a little with the Dow down 0.17%, the Nasdaq down 0.12% and the S&P 500 down 3 points or 0.14%.
The S&P is trying to break up and through the recent highs and while I’m not overly bullish a gave a small group talk last night and I was reminded that even the Fed taper is still a net positive cash flow into the market so perhaps all the economic data which is pointing to a slow down matters less than all the money still flooding the market.
I’m not a buyer up here – but that’s a very long term monthly outlook.
In Europe a day after multi-year highs the FTSE fell 0.51% on the back of some concerns over the miners with what is going on in China. On the Continent Spanish stocks rose 0.49% but the rest of the region was largely unchanged with the DAX, CAC and FTSEMIB down 0.10%, 0.09% and 0.02% respectively.
Locally the ASX SPI 200 March contract fell 6 points in overnight trade.
On global FX markets the Chinese Yuan had a decent weakening yesterday and the PBOC has widened the band to help it lose more ground against the US dollar. this is helping constrain the Aussie which has slipped back to 0.9013 this morning from a high around 0.9050 yesterday.
90 cents is the key level on the day and a break might see a run lower. equally a break of 50 would see a run toward 80 which is the top of the recent box.
Elsewhere Sterling was interesting and it had a volatile night and has slipped back to 1.6675ish which seems the pivot point of the recent trading range. USDJPY is off a little as well at 102.77 and Euro was flattish for the 4th day in a row sitting at 1.3740.
On commodity markets gold has closed at its best level since October last year and above the recent highs resting at 1340.68 this morning. Nymex crude was down about 0.8% to $102.00 bbl and stock piles tonight might be interesting. Copper is at $3.31 while the Ags were mixed again with corn and soybeans up more than 0.8% but wheat fell 0.45%.
On the data front in Australia today we have construction work done and then Gfk consumer confidence in Germany and UK GDP which will be huge for Sterling shorts like myself. In the US new home sales will be of interest.
Have a great day and good hunting