Market Update

03/09/10 - 06:45
Australia Research Team, IG Group
Stocks rose in US trade overnight, adding to their biggest gain since July, as a surprise jump in home sales and a better-than-expected jobless claims number tempered fears the economic recovery is weakening. Last night’s stronger data, coupled with the good manufacturing figures seems to have eased concerns over the economy.
The NASDAQ was the top performer, rising 1.1%. The S&P 500 closely followed, up 0.9% while the Dow Jones Industrial Average could only manage gains of 0.5%.
Across Asia, regional markets are mostly higher following the stronger-than-expected US economic data overnight. Although, there is some caution ahead of tonight’s non-farm payroll numbers. As at 06:25, the Nikkei 225 is the top performer, up 0.5% while the Hang Seng and Kospi are both 0.1% firmer. The Shanghai Composite is bucking the broader trend, down 0.5%.
In Australia, the ASX 200 is hovering around the flat line, well off this morning’s high of 4558. Strength among industrial, material and consumer staples names are being offset by selling pressure among the big banks. It didn’t take long for the profit-taking to start in the early session.
The sustained run of buying on Wall Street in the last few minutes of trade yesterday is poised to help lift the major European indices again at the open, though there is wariness ahead of the non-farm data release.
There are a few other fundamentals on the agenda today - notably eurozone retail sales - but it's going to be all eyes on the non-farms. Although the overall backdrop may be one of downbeat economic data, we saw a marginally better-than-expected weekly jobless reading yesterday and anything with a bit of gloss on it could help again lock in confidence for equities. Another risk however, comes with the US Labor day holiday on Monday so any uncertainty could add to the temptation to take money off the table, ensuring traders don't get caught on the wrong side of any big move lower in Asia or Europe at the start of next week.
Wednesday's gains may well have put some froth back into the market so there are still some healthy short-term profits out there that can be booked. Ahead of the open we're calling the FTSE up 8 at 5379, the DAX up 13 at 6097 and the CAC up 7 at 3638.
Plan your day
For further information, try looking at our rundown of today's key Economic Indicators. More in-depth market news is available within our PureDeal platform, as well as a range of free charting and research tools. See our PureDeal Resources section for an overview.
IG Index provides an execution-only service. The material above does not contain (and should not be construed as containing) investment advice or an investment recommendation, or a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Index accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of the above information. Consequently any person acting on it does so entirely at his or her own risk. The research does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. This communication must not be reproduced or further distributed.
Ready to spread bet?
Open an account online in minutes with no forms to print or documents to send.
- Latest Analysis
Forex Focus
Commodities Update
Autochartist
Weekly discussion and analysis of chart patterns from our partners at Autochartist.
- More Like This
- 03/09/10
All eyes on the non-farm payrolls after a positive session in the US...
Read more - 02/09/10
A mixed bag of economic data failed to give Wall Street direction this afternoon...
Read more - 02/09/10
The FTSE was sluggish this morning following yesterday's 141 points gain...
Read more - 02/09/10
US stocks surge though markets still wary ahead of tomorrow's non-farm payrolls...
Read more - 01/09/10
Wall Street rallied this afternoon as growth in Chinese and US manufacturing sparked a revival in risk appetite...
Read more

SHARE: