Equities:
Global equity markets continue to trade flat as they await the next round of major data. There are clearly 2 schools of thought setting up in the market place. There are those that feel the market is oversold and those that feel the market is readying itself for a pullback coming into Q4. Japan’s Nikkei added 79pts as it remains 240pts above the 9,000 level. European markets were down slightly as the FTSE 100 lost 47pts to close at 5,302 while the Stoxx Europe 50 traded lower by 12pts to remain just 6pts above the 2,500 mark. In the U.S, the DJIA rose for a second day as it tries to climb above the 200 day moving average. Technology lead the Dow higher after the sector gained nearly 1% on the day and Cisco Systems gained 1.86%, as the Dow added only 9pts to close at 10,415.
FTSE 100
Commodities & Treasuries:
Commodities took a breather after Tuesday’s one day run up. Copper added 60 cents to close above $336. It was a wild ride for Oil as it initially fell below $74 before recovering during the U.S session. Oil ended the day down 50 cents to $75.25 a barrel. Gold continues it’s recent rally marking its 14th win in the last 17 sessions after bouncing off a recent low of 1,160. Gold gained nearly $5.00 to close at 1,229.60. Treasuries were mixed on the day as the 2.625% 10-yr continues to trade at a slight discount, yielding 2.64%. The 3.875% 30-yr, or the long bond, is trading a premium at 102-16, yielding 3.74%
Currencies:
With mixed market sentiment and little economic data released yesterday, the U.S Dollar traded virtually flat as the DXY remained at 82.24. The EUR was unable to close above 1.29 after testing that level the prior two days. The British Pound touch the 200 day moving average during intra day trading but retraced its losses to close the day with a small gain at 1.56. In spite of Oil’s lower close both the NZD and CAD gained against the Greenback while the AUD fell crossing just below .9000. The Japanese Yen continues to consolidate at the major resistance level near 85. The JPY closed the U.S session at 85.46.
Economic Outlook:
It was a light day for economic data releases yesterday and the Bank of England’s meeting minutes did not provide any additional headline news. In the U.S, Mortgage Applications rose by 13% as low rates on conventional mortgages are still pushing would be house buyers into the market. Later today the market will get a look at German Producer Prices. Switzerland will release their Trade Balance figures which have come in wider than forecasted the last few months. In the U.K, Retail Sales figures will print. In the U.S and Canada, Leading Indicators data will hit the wire. In addition, U.S Jobless Claims figures and the Philadelphia Fed numbers will print. Expect that prints that disappoint or that beat analyst expectations will give either sellers or buyers the fuel they are looking for, as markets have been trading near flat for 4 sessions.
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