Global equities higher, precious metals and commodity currencies drop, German CPI deflates, ASX futures 53 points higher

European stimulus measures won't come soon enough as far Germany is now concerned, after the annualised inflation measure there came in at -0.5% versus expectations of -0.2% and a previous print of 0.1%. Stocks there nonetheless finished higher, with the cushion of upcoming European Central Bank (ECB) stimulus assuring investors that, despite the low CPI reading, action on combatting such data has already been taken. US equities performed well, with the Dow coming out 1.31% and the S&P 500 & NASDAQ both up about 1%.  

Despite a report from Thomson Reuters that shows central banks bought the most amount of gold in 2014, as a whole, since 1971, prices in US dollar gold and silver fell sharply overnight. In today's first chart you can see that traders have taken profits and knocked the strength out of both of these precious metals, and this comes at the same time has US dollar strength managed to weaken anything trading against it. Today's second chart shows the US dollar's effect on the Aussie, Kiwi and Canadian dollars, which, after enjoying some strength earlier this week on dovish US Federal Reserve comments, have all resumed their broader downtrends to counter the US dollar's broader uptrend. 

The recent falling price of copper is no doubt a concern for many, as it tends to act as a barometer for global economic health, and it did continue to fall last night. However, despite the US dollar strength, iron ore and oil prices lifted and this will be no doubt of more immediate concern to Australian investors, who will be capitalising on a bullish close of the US S&P 500 last night. The US stock market, as measured by the S&P 500, now sits at 2,021 and is still 70 points shy of its all-time highs. Earnings reports are knocking US equities levels around a little at present, but as a whole if markets there can lift around three percent from here, they'll be back in record territory.

Today’s charts are taken from the Rivkin Trader platform. 30,000 global instruments available to trade including FX, commodities, index, ETFs and international shares. Trade Australian share CFDs from just $8 or 0.10%. Click here or phone 1300 748 546 to get your free $100,000 demo account.

Upcoming economic announcements: Japanese CPI at 10:30am and industrial production at 10:50am, Eurozone CPI at 9pm, Eurozone employment report at 9pm, Canadian GDP at 12:30am and US GDP at 12:30am, all Sydney time.

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