Local Market Opens Up Following Positive US Lead

11.51 AEDT, Wednesday 27 March 2013

Local Market Opens Up Following Positive US Lead
By Niall King (Sales Trader, CMC Markets)

The Australian Market has opened in positive territory this morning, taking the lead from its US peers, which rose overnight despite mixed economic data from the world's largest economy. For now though, the US economy's general drift towards safer waters appears to be enough to offset the lingering concerns over the manner of the Cypriot bailout and its potential implications for other peripheral nations in the Eurozone.

Having come under pressure yesterday as the fragility of market confidence in the Eurozone was exposed once more, the miners have enjoyed some respite this morning. Early gains were made across all the majors while the financials are relatively flat.

As the opening of old wounds in the Eurozone puts pressure on the single currency, the Aussie Dollar continues to be one of the beneficiaries. Down from its overnight highs but still comfortably above $1.0470 against its US Counterpart, recent strength in the Aussie has continued as imminent interest rate cuts by the RBA appear increasingly unlikely.

The local market is likely to be influenced in the coming days by events overseas as the fall out to Cyprus continues in Europe and more economic data is released from the US in the form of unemployment claims on Thursday evening.

Web: http://www.cmcmarkets.com/

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