The Australian SPI 200 > Dec 09 futures contract was down 7 points or 0.2% to 4657.
The USD > strengthened against major crosses overnight with US industrial production figures released being stronger than expected. USD/EUR dipped to a low of 1.4503 overnight, and opens higher at 1.4524. GBP/USD weakened overnight after UK inflation figures disappointed dampening the prospects of an interest rate hike, the cross opens around 1.6250. USD/JPY opens strong at 89.81, trading higher overnight.
The AUD > weakened overnight, with the RBAs minutes revealing that the central bank may take it slow when considering future rate hikes. AUD/USD opens lower at 0.9054 declining steadily overnight. AUD/EUR opens marginally lower at 0.6233 after a quiet session overnight. AUD/JPY opens higher at 81.32 and the AUD/NZD trades weaker at 1.2567.
Crude oil > rose on reports that US industrial production increased in November, signalling a rise in fuel demand. WTI futures contract for January rose 1.7% to US$70.71 a barrel.
Spot gold > decreased overnight as the US dollar strengthened on speculation that the US Fed will increase rates following positive economic news. Spot gold declined 0.2% to US$1,124.02 an ounce.
LME > copper December futures decreased 0.3% to US$6,895 a tonne after the US dollar strengthened, eroding the appeal of the metal. Other base metal futures traded mixed with lead and nickel increasing 0.9% and 0.6% and aluminium decreasing 1.1%. Zinc closed unchanged.
US > bond yields were higher overnight after US industrial production increased in November, the most in three months, and the Federal Reserve began its two-day FOMC policy meeting. The 2-year yield increased 3bps to 0.879%, whilst the 10-year yield gained 6bps to 3.607%.
Australian > bond futures moved in line with Us Treasuries yet underperformed at both the short and long end of the curve. The implied yield on 3-year bond futures was up 2.5bps at 5.1% (price down 2.5bps to 94.900) and the implied yield on the 10-year bond futures edged 0.5bp higher at 5.625% (price down to 94.375).
US > equities fell for the first time in five days after reports on US wholesale prices and industrial production increased speculation that the Federal Reserve will unwind stimulus measures and raise interest rates. However, losses were limited following a rally in energy companies triggered by increasing oil prices. At the time of writing, the DJIA was down 0.3% at 10469, the S&P 500 declined 0.3% to 1111 and the Nasdaq was flat at 2212.
European > equities initially traded lower after German investor confidence fell, but later pared some losses on positive economic data from the US. The DJ Euro Stoxx 50 rose 0.1% to 2889, the German DAX increased 0.2% to 5811 and the FTSE was down 0.6% at 5286.
US > Corn declined 0.5% signs of accelerating inflation and US economic growth that may force the US Fed to raise interest rates. Wheat gained 1.1% despite the strengthening US dollar dimming prospects for exports from the US. Sugar lost 1.8%, while soybeans closed unchanged. Palm oil futures were up 0.4%.
