Financials lead positive opening

Financials lead positive opening

By Niall King (Sales Trader, CMC Markets)
17 April 2013

Following a string of gloomy global economic data and a near meltdown in commodities, equity markets seem determined to cling to the coattails of the American dream and are once again bouncing to the tune of an expected continuation of monetary stimulus. The Australian market appears no different after a positive opening to proceedings this morning. Green is the predominant colour with the financials leading the way with early gains made across all the majors.

Weak consumer confidence numbers from Germany have not been enough to quell US investors overnight as strong housing data and corporate earnings from the world’s largest economy saw to a rebound in equity markets.

Having weathered a storm which saw it drop as much as 2 cents against its US counterpart this week, the Aussie dollar has finally found calmer waters. Yesterday's RBA minutes suggest that historic rate cuts should still have enough legs in them to see the economy through. AUD/USD is ranging between 1.0370 and 1.04 in early trade and could edge higher should local equity markets continue to advance over the course of the day.

Investors craving growth and stimulus will watch on eagerly in the early hours of Thursday morning when insight into the latest thinking on monetary policy from the US is revealed in the form of the Beige book. Later in the morning, the local market will look to the Quarterly NAB Business confidence reading for inspiration.

www.cmcmarkets.com

ENDS

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