daytrades october 06 morning ...

Good Morning Traders,

DOW Snapshot from previous trading session

"U.S. stocks rallied right out of the gate and continued to surge Tuesday, with all three major indexes gaining about 2% and finishing at their highest levels since May. Investors welcomed a surprise move by the Bank of Japan to cut its key lending rate, as well as improved data for the U.S. service sector.

Early Tuesday, Japan's central bank announced a move to lower its key interest rate to between 0% and 0.1%. It previously stood at 0.1%. The bank also said it would purchase about $60 billion of government bonds and other assets, to boost the pace of the country's recovery. The Bank of Japan downgraded its economic forecast, but investors took the monetary policy move as a hopeful sign for the world's third-largest economy. Investors were also encouraged after the Institute for Supply Management's index measuring U.S. service sector activity rose more than economists had forecast.

"The markets are feeling reassured after Japan's move to ease monetary policy and the fact that the service sector, which accounts for 90% of our economic activity, is stronger than we were expecting," said Jack Ablin, chief investment officer at Harris Private Bank. U.S. stocks are coming off of a big dip on Monday, when investors were feeling cautious ahead of corporate earnings season and key employment data due later in the week. Last week, they kicked off the start of October and the fourth quarter with modest gains."

The DJIA Index finished the trading session Up 193.45; and
The SPI Futures are currently: Up 63 pts atm.

Of note in the US this evening:

ADP Employment Report [Merits extra attention]

EIA Petroleum Status Report [Merits extra attention]

...AND...

Of note in Australia today:

AiG Performance of Construction Index (Sep) [Moderate volatility expected]
[Based on 120 interviews to companies, the HIA/AiG Performance of Construction Index, released by the Australian Industry Group and the Housing Industry Association, is considered as an indicator that measures the conditions on the short and medium term in the construction market. Companies answer questions related to production, employment, prices supplier deliveries, inventories and new orders. A high reading is seen as positive, or bullish for the AUD, while a low reading is seen as negative, or bearish.]

Gold is currently trading Down $0.10 & is sitting at US$1,340.50/oz atm [Source: Kitco]
Oil is currently trading Down $0.26 & is sitting at US$82.56/oz atm [Source: Bloomberg]
The Dollar: The AUD/US is currently trading @ 0.9718 cents [Source: Forex. Live]

Have a great day trading today all.

Cheers, Tweets

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