Global equity markets finished the day mixed. In Japan, following yesterday’s massive sell off, markets were flat, gaining just 17 points to close at 9,537.94. In the U.K, the FTSE 100 is getting closer to a drop below the psychologically important 5,000 mark after it was down again yesterday. The FTSE 100 shed 40.91 points to finish the day at 5.028.15. U.S equity markets rebounded Tuesday, following more than 2 days of losses. Prompting the buying was U.S. Fed Chairman, Ben Bernanke’s comments that the recovery is intact and pointed to the fact that small business confidence is the highest its been in 2 years. The DJIA gained 123.49 points to close at 9,939.98.
Commodities & Treasuries:
Commodities were up across the board yesterday. Copper advanced $2.30 while Oil rose just under $1.50 a barrel to close at $71.99. As investors worries were calmed following the U.S Fed Chairman’s remarks, traders reduced their Gold positions causing Gold to fall by more than $3.50 an ounce to 1,236.30. After falling more than 23bps over the last 3 business day the benchmark U.S Treasury 10-yr note fell 12/32nds, lifting yields 4bps to 3.189%.
The EUR is little changed after falling to 4 year lows last Friday. The EUR remains at a mid 1.19 handle. The DXY, the weighted currency basket against the U.S Dollar softened a little Tuesday, but still remains above 88. Majors were flat against the Greenback except for commodity currencies as commodities moved slightly higher. The AUD was able to retrace more than Monday’s losses as it gained 2.04% to close at .8275. The NZD gained 1.40% and the CAD gained 1.11%
It was a quiet day for economic releases yesterday, with the main attraction being Switzerland’s Unemployment reporting in at a healthy 3.8%. The U.S Fed Chairman reiterated his contention that the recovery is underway and sustainable. His comments gave the market a needed boost. In the U.K today, Trade Balance figures will report in. In the U.S, the Fed Beige Book notes will be released. Later in the day the the National Reserve Bank of New Zealand will announce its key interest rate decision. Many analysts are predicting a quarter point hike, but it is hardly penciled in at this point. And finally, Japan’s GDP will print, and although it slightly missed expectations last month it was still a robust 4.2%.
- Alex Perlmuter
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