MARKET SNAPSHOT –
- SPI200 futures closed up 40 pts to 5736
- SP500 futures closed up 22 pts to 2442.50
- FTSE100 futures closed down 41 pts to 7330
- DAX30 futures closed down 21 pts to 12642.50
- GOLD finished up $2.50 to $1249.40 an ounce
- COPPER futures finished up $1.40 to $267.55 a pound
- OIL futures finished up $0.64 to $44.88 a barrel
- CRB Index finished up 0.98 pts to 172.70
- AUDUSD trading at 0.7639
- EURUSD trading at 1.1378
- GBPUSD trading at 1.2927
- USDJPY trading at 112.2900
Technology and Financials were the big winners overnight as they dragged the US Indexes to a very healthy gain at the close with the broader SP500 Index up 09%. US Banks benefited after the Federal Reserve has approved plans from the 34 largest to use extra capital for different purposes other than being a cushion against catastrophe. The Fed said that those lenders had passed the second tougher part of its annual stress test showing that many have not only built up capital buffers, but improved risk management procedures. Europe did not rebound like the US and closed lower as the ECB and BOE talk of monetary policy tightening and scaling back of stimulus.
The USD was weaker against a basket of major currencies after the ECB and BOE signaled a hawkish tone to monetary policy. The EURO and Pound kicked on strong benefiting form the comments while the AUD also gained from the weaker USD. The dollar also found pressure from sellers as a healthcare legislation vote was delayed which is seen as pushing back the timeline for tax reform which is regarded as essential to support lofty stock valuations.
Gold was higher along with Crude Oil as the USD weakened. Oil also gained as the US Energy Information Administration said weekly US production declined.
The ASX200 is expected to open up 40 points as the SPI200 benefited from strength in the US markets.
ECONOMIC DATA OUT TODAY (AEDT) –
JPY Retail Sales 9:50am
AUD New Home Sales 11am
EUR German Prelim CPI All Day
EUR Spanish CPI EUR 5pm
GBP Net Lending to Individuals, M4 Money Supply and Mortgage Approvals 6:30pm
USD Final GDP and Unemployment Claims 10:30pm
ASX200 INTRADAY LEVELS TO WATCH –