The S&P/ASX 200 dropped 29 points yesterday, closing at 4,380.30. The Aussie index has opened over 60 points higher this morning thanks to the strong lead in from the overseas markets.
Last night the Dow Jones Industrial Average jumped 146 points (1.44%), ending the session at 10,363.02. Alcoa [NYSE: AA] kicked off the second quarter earnings season by reporting stronger than expected figures and the company has increased the outlook for aluminium products, as demand has picked up in all markets.
However while some investors are willing to jump onto any good news, volume on the US markets is still quite thin, which suggests that many traders aren’t buying into the rally.
The FTSE added a massive 2%, or 104, points to finish at 5,271.02. Good news for the Footsie came from the BP [LON: BP] disaster is showing signs of progress and a positive trading session in the US.
Adding to the vibe was one of the all important key inflation figures, the consumer price index (CPI), dropping from 3.4% to 3.2%. The decline is a sign that inflation is easing. However analysts are still worried that core inflation is an issue.
The Nikkei was lower by 10 points to 9,537.23
The price of spot gold in Australian dollars is $1,370.63, while in US dollars it’s $1,211.66. The price of silver in Australian dollars is $20.64 and in US dollars it’s $18.24.
The Aussie dollar is higher this morning as investors have an increased appetite for commodity driven currencies after the solid earnings reported in the US.
The Aussie dollar versus US dollar is AUDUSD 0.8844 and against the Japanese Yen it’s AUDJPY 78.56.
Oil has benefited from the good start to the earnings season in the US. Crude Oil closed at USD$77.26
For the biggest movers on the market yesterday click here…
That’s all I have for you this Wednesday, see you tomorrow.
Shae.
