Global equities firmer, commodities softer, ASX futures up 23 points

US stocks closed near their highs after initially selling off following Monday's public holiday. All three major US indices remain either at or near their all-time highs, as illustrated on today's first chart that shows the cash index CFDs of the S&P 500 (orange), Dow Jones Industrial Average (black) and NASDAQ (blue). I've used a one-week chart that takes us back to pre-GFC levels to show the incredibly consistent and broad trend that these three indices remain in. 

The biggest movers last night were precious metals. Today's second chart shows the declines in US dollar spot gold (XAUUSD), silver (XAGUSD) and platinum (XPTUSD) since their strongest point this year in January. The UK last night announced a softer-than-expected CPI release and along with continued inaction in Europe with regard to progress talks in Greece, investors may be betting that the continuing downside in inflation figures will push the merits of a fundamental long gold or silver trade further out into the future. Gold fell 1.78% and silver fell 4.34% last night.

Commodities in general had a rough night unfortunately - copper was 1% lower and iron ore was 3.46% lower. Oil prices were steady and commodity currencies held up pretty well. Fortescue Metals Group (FMG) reported earnings yesterday, which were more or less in line with expectations, maybe a little better than expected. The 3c fully-franked dividend announced was good (all things considered), however we get the sense that FMG is playing up to a yield-hungry shareholder list by issuing this - it may have been more sensible to retain those earnings or put them towards paying off debt. Today's last chart shows FMG attempting to move higher from recent lows.

Today‚Äôs 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: Bank of Japan will release its monetary policy statement at 2pm, UK jobless claims out 8:30pm, and all eyes will be glued to the US Fed's minutes at 6am tomorrow morning, all Sydney time.

comments powered by Disqus

DISCLAIMER: Rivkin aims to provide clear and simple information to those visiting our website. If any part of this disclaimer does not make sense, please phone Rivkin and ask to speak with a member of our Dealing and Relationship Management Team. Rivkin provides general advice, securities and derivatives dealing services and accounting administration services. Rivkin does not provide advice that takes into account your, or anybody else's, investment objectives, financial situation or needs. We strongly suggest that you consult an independent, licenced financial advisor before acting upon any information contained on this website. Investing in and trading securities (such as shares listed on the ASX) and/or derivatives (such as Contracts for Difference or 'CFDs') carry financial risks. CFDs carry with them various additional risks that differ from more simple securities such as fully-paid company shares. Some of these risks include not owning the underlying instrument from which a price is being derived, settling trades 'over the counter' with a financial institution rather than on a stock exchange, and using leverage to gain access to trades that may have a higher face value than your initial deposit. This risk of leverage means that it is possible to lose more than your initial investment. Our aim is to create more life choices for our clients, which means improving the wealth of clients throughout many market cycles by nurturing a relationship spanning many years. If you are not comfortable with your understanding of the risks involved before using a Rivkin product and service, please contact our office to seek further information or a Product Disclosure Statement, or make an appointment to sit with one of our friendly financial experts. It is in our interest for your Rivkin experience to be a rewarding and comfortable one. Rivkin is a trading name of Rivkin Securities ABN 87123290602, which holds Australian Financial Services Licence No. 332 802.