Press Release – CMC Markets
US market reaction upon recommencement of trading will be interesting to see as traders weigh up the economic implications of the storm. But while the storm has placed US sharemarkets on hold, European markets have been ticking along nicely and this has …15.32 AEDT, Wednesday 31 October 2012
Europe provides direction with US market activity on hold
By Tim Waterer (Senior Trader, CMC Markets)
US market reaction upon recommencement of trading will be interesting to see as traders weigh up the economic implications of the storm. But while the storm has placed US sharemarkets on hold, European markets have been ticking along nicely and this has lulled investment interest in defensive assets such as the US Dollar.
Today the AUD made a low key run towards the 1.04 level on thin volumes, with the currency receiving some support from a strong showing in the latest building approvals data (which came in at a rise of 7.8% vs forecast of a 1.1% rise). A bright session on European markets last night had the AUD well placed at the commencement of the Asian market hours today. The resumption of US markets tonight and reaction of traders to the Super storm will likely dictate which side of the 1.04 mark the AUD resides ahead of the Chinese PMI on Thursday.
With the US battening down the hatches, local market direction was derived from the strong showing across Europe last night. Mild relief regarding Spanish GDP as well as decent earnings across Europe made for a positive bias on the ASX200 today in the absence of key US index activity. Mining stocks were among the better performers on the Australian market which contributed to the ASX200 making a play for the 4500 level once again. The share performance by NAB was among the local lowlights however after announcing a sizable profit decline. Looking ahead, Chinese PMI data due on Thursday could set the tone for trading sentiment ahead of the Friday US jobs report.