Market Commentary | Stock Market News
29.03.10
Afternoon thoughts from the Trading Room – 3.30pm.
Across Asia, regional markets are mostly firmer on the back of the fifth direct gain in US consumer confidence and an increased yearning for riskier assets. Both the Nikkei 225 and Hang out frequent Seng are 0.6% stronger while the Kospi is up 0.3%. The Shanghai Composite is bucking the head, down 0.2%.
Following a positive session on Wall St, the Australian customer base is currently up 0.4% at 4917 having traded to a tainted of 4924. The return of risk appetite overnight is seeing the earthly, industrials and energy sectors adding the mass of the points today.
BHP Billiton’s notice this morning that it had agreed with a number of its customers to move to more patronize re-pricing of iron ore is also supporting the resources array.
The gains in US markets overnight were positive indeed. The underlying backdrop continues to better with stock gains becoming more reliant on improving corporate earnings and money-making data continuing to show signs of improvement.
And, so far it’s been a jobless salvage. Once we begin to see some traction in the labour market, the restoration will really gather steam. This could start Friday, with the nonfarm payrolls several expected to show the highest number of jobs created in more than 2.5 years.
Energy for both the economy and the stock market is clearly towards the upside. There’s a competent chance this will continue as we head into April, which has historically (dating all the way back to the 1950’s) been one of the most months for equities, both locally and in the US.
Those currently compendious-the-market anticipating a pullback may want to re-over their positioning.
Market Update from the Trading Live – 1.15pm Australia 200 CFD Index: 4909.30 (0.3%)
AUD/USD – Forex traders were very bullish overnight but have quietened down during the Asian term this morning. Since 6am, the Aussie has traded between 0.9157 and 0.9178. An article noting RBA watcher and columnist Terry McCrann stating rates will go higher next week is further dollop to support the market, with buyers stepping in on any fancy. In a note from ANZ, it said extreme euro positions are still being pared back and eyes are on US nonfarm payrolls out at the end of the week. The dealer believes the number will likely be positive and if it has turned, you will be looking at some plausible momentum, which will be positive for risk.
Source: IG Markets CFD Trading