Morning all
Thanks to Trees et al
The ASX looks set to end a 6 day losing streak this morning as financial and energy stocks drove US markets higher ahead of the Fed decision on interest rates announcement late tonight.
Dec. SPI futures are 56 points higher at 4960
European equities bounced back on Tuesday from sharp declines in the previous two sessions as energy stocks tracked higher crude oil prices and steel makers gained following a European Commission move on Chinese and Russian steel imports.
The STOXX Europe 600 Oil and Gas index surged 3.9 percent, the top sectoral gainer in Europe, after oil rose following its lowest in nearly 11 years. BP, BG Group and Royal Dutch Shell rose 2.6 to 4.0 percent.
"A short-term reversal of the decline in oil prices that began on Monday and continued through Tuesday has relieved the pressure on stock markets," Jasper Lawler, analyst at CMC Markets, said.
DAX +3%
STOXX +3.3%
FTSE +2.3%
The S&P 500 and the Dow were on track in late trading for their best two-day run since mid-October as recovering oil prices lifted energy shares and financial stocks rose on a widely expected interest rate hike by the Fed.
"What it comes down to is investors wanting some certainty. If you're going to raise rates, just do it already and give me a clue on what the glide path is going to be," said Matthew Tuttle, chief executive of Tuttle Tactical Management in Stamford, Connecticut.
Bank stocks rose on the expectation of improving interest income from higher rates, with Goldman Sachs' 2.9 percent rise providing the biggest boost to the Dow. JP Morgan, Morgan Stanley, Citigroup and Bank of America were up about 2.5 per cent.
Exxon (
XOM.N) powered the S&P 500, with a 4.1 percent rise, while Chevron (
CVX.N) rose 3.6 percent after crude prices recovered from their steep fall on Monday.
Futures contracts showing a 78 per cent likelihood that the US will raise its benchmark from near zero on Wednesday, and traders are looking past the first increase and contemplating a landscape of relatively low borrowing costs for years to come.
US markets lost strength into the close.
S&P 500 +1%
Nasdaq +.95%
Oil rose 3 percent on Tuesday as short-covering and technical support halted its slide to 11-year lows, but traders said the market remained fundamentally weak from oversupply and could be hit by a dollar rally ahead of an expected U.S. interest rate hike.
Brent and U.S. crude's West Texas Intermediate futures rose 86c a barrel, up for the second straight day after oil bears failed to push prices below a seven-year trough.
"People are buying on the dips," said Jeffrey Grossman, crude dealer at New York's BRG Brokerage, who expects Brent to return closer to the $40-a-barrel level it fell under last week.
Oil $37.17
Copper hit a week low on Tuesday as the dollar rallied and investors feared the first US interest rate rise in nearly a decade could trigger a default among highly leveraged miners. Three-month copper on the London Metal Exchange ended down 2%. Copper appears to have found a near-term floor around $US4500, just above November's 6-1/2 year lows, with traders expected to close short positions into the year end.
Nickel closed down 2.6%. The global nickel market moved to a deficit of 400 tonnes in October from a surplus of 8,500 tonnes the previous month, revised figures from the International Nickel Study Group showed on Tuesday.
Gold prices ended the U.S. day session slightly lower in quieter, two-sided trading Tuesday. The feature in gold and silver markets was position evening ahead of the highly anticipated conclusion to the FOMC meeting Wednesday afternoon. February Comex gold was last down $2.00 at $1,061.40 an ounce.
HUI flat
AUD Gold $1475
BHP ADR +.6
RIO ADR + .1%
AUD 71.97
Todays news
RBA Bulletin
US-
FED rate decision
Housing and Building stars
Oil inventories
Have a good day
Sauces - Bernaise, Bordelaise, Mushroom
