Morning traders. Many thanks to Foil Hat and Gttrain for standing in so ably yesterday and for all the well-wishers. Good to see the regulars on form - some funny stuff on the threads.
Market wrap:
Shares face a tepid open after US stocks edged lower on fresh signs of stress in Europe's debt crisis.
The June SPI 200 futures contract retreated 13 points or 0.3% to 4991 as Europe's problems regained the spotlight a day after the S&P 500 surged to within two points of its October 2007 record high.
The US's benchmark index swooned at the open, but recouped most of its gains to end the session less than one point or 0.05% weaker at 1,562. The Dow pared a 120-point plunge into a loss of 34 points or 0.23%, while the Nasdaq secured a gain of 0.14%.
"Clearly we are giving back some of [Tuesday's] gains as we once again have some of the fears creeping up from Europe," a senior technical strategist at Schaeffer's Investment Research in the US told Reuters. "But again it seems like we continue to bounce right up against this new S&P high and can't quite get through."
US stocks sagged as traders digested a night of generally negative developments in Europe's grinding debt crisis. Italy's borrowing costs rose to their highest level since October after the leader of the centre-left political group ruled out a coalition government, increasing the likelihood that the country will have to go back to the polls. Economic data showed confidence in the euro-zone deteriorated this month, Italian manufacturing and retail sales declined and the French economy contracted last quarter. The Institute of International Finance warned the Cyprus bailout will increase funding pressures on banks in Italy, Spain and Portugal.
Traders largely ignored a report showing pending home sales in the US declined 0.4% last month. A revival in the housing market has been one of the engines of US growth over the last year.
European markets pared losses as Wall Street started to rebound, but most finished deep in the red. Germany's DAX lost 1.15%, France's CAC 0.98%, Britain's FTSE 0.18%, Italy's FTSE MIB 0.92% and Spain's IBEX 35 1.13%.
Oil shook off early weakness to grab a fourth straight day of gains. West Texas Intermediate crude for May delivery was lately up 18 cents or 0.2% at US$96.51 a barrel.
Gold rallied for the first session in four as rising European tensions encouraged some traders to buy havens. The June contract, now the most-active, advanced $9 or 0.6% to US$1,604.70 an ounce.
A strengthening US dollar helped push aluminium, zinc and lead to their weakest levels in four months before rebounding. In London, copper lost 0.2%, lead 0.4% and tin 1%. Zinc added 0.3%, aluminium 0.3% and nickel 0.4%. US copper for May delivery was recently up one cent or 0.35% at US$3.45 a pound.
TRADING THEMES TODAY
EASTER CAUTION?: The buy-the-dip crowd were handed a golden opportunity in the US last night and pushed the major indexes pretty close to where they finished Tuesday's rally. A big win for the bulls. Still, it would be great to see the S&P 500 finally take out the 2007 record high. That could come as early as tonight. However, with Wall Street due to trade twice before the ASX re-opens on Tuesday, we may see some caution on our market today heading into the Easter long weekend following yesterday's welcome rally. Worst job on the planet today? Cypriot bank teller. Cyprus's banks re-open tonight for the first time since depositors learned about the heavy savings levy that is central to the nation's bailout deal. Tin hats on.
ECONOMIC NEWS: The monthly inflation gauge is due at 10.30am EST, followed by private sector credit figures at 11.30. Highlights in Europe tonight include retail sales and money supply data, plus German employment figures. The US heads into a three-day Easter weekend with weekly jobless claims, final GDP figures, GDP price index, Chicago manufacturing and natural gas storage.
