Market Brief
Asian equities traded higher this morning as global sentiment improved post G20 summit. The USDJPY traded through 100.00 to 100.18 to post a 5-month high, however these levels were unsustainable and the heightened volatility through Asian session brought the pair back down to the 99.50 vicinity. Gold weakened considerably yesterday as the G20 deliberated, boosting risk appetite – pulling investors out of the safe-haven trades.
The G20 agreed to provide $1.1Trillion to the IMF to tackle the global downturn, including support for lower income countries. A further $250Bn was allocated to boost the international money supply. This concerted and almost historical effort by the 22 most powerful states on the planet has had markets reveling in the sunlight as gleams of hope seep through.
Other news to hit the newswires yesterday was the less than expected 25bps cut by the ECB ( from 1.50 to 1.25 ). Trichet also mentioned that any unconventional measures needed more time to be drawn up before a final decision is made at the ECB’s next meeting next month.
The renewed faith in the global markets have weighed heavily on commodities. Gold dropped as low as $895.30/oz yesterday and later stabilized just under $904/oz. Ahead today we expect the NFP’s to be quite dismal but already priced in – look for a figure between -650K and -700K.
| Global Indexes | Current Level | % Change |
| Nikkei 225 Index | 8749 | + 0.35 |
| Hang Seng Index | 14550 | + 0.20 |
| Shanghai Index | 2413 | - 0.49 |
| DJIA futures | 7914 | - 0.55 |
| Nasdaq futures | 1295 | - 0.46 |
| FTSE 100 Index | 4085 | + 4.65 |
| DAX Index | 4353 | - 0.81 |
| World Markets | Current Level | % Change |
| Gold | 906.48 | + 0.27 |
| Silver | 12.922 | - 0.37 |
| VIX | 42.04 | - 0.57 |
| Crude wti | 52.01 | - 1.20 |
| USD Index | 84.617 | + 0.20 |
| Todays Calender | Estimates | Previous | Country / GMT |
| Non-Farm Payrolls | -660K | -651K | USD / 12:30 |
| USD Unemployment rate | 8.5% | 8.1% | USD / 12:30 |
| USD Change in manufacturing payrolls | -160K | -168K | USD / 12:30 |
| ISM Non-Manufacturing Composite | 42.0 | 41.6 | USD / 14:00 |
| US Bernanke Speaks | - | - | USD / 16:00 |
Currency Tech
AUDUSD
R 3: 0.7231
R 2: 0.7200
R 1: 0.7159
CURRENT: 0.7149
S 1: 0.7117
S 2: 0.7071
S 3: 0.7026
EURJPY
R 3: 136.40
R 2: 135.00
R 1: 134.40
CURRENT: 134.15
S 1: 134.23
S 2: 133.23
S 3: 132.47
USDSGD
R 3: 1.5259
R 2: 1.5148
R 1: 1.5058
CURRENT: 1.5044
S 1: 1.5030
S 2: 1.4997
S 3: 1.4973
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
