Global Market Wrap:
European Indexes Reach 14-Month High
Equity Futures: Dow +36.00. S&P +3.50. NASDAQ +8.25. Japanese Nikkei +10.00. German Dax +13.00.
European Trade: Wednesday marks the third consecutive day in which the European markets continue to rise. The S&P futures also advanced overnight, as investor consider that the global economy is in a strong recovery phase.
Since the session started, the regional indexes across Europe gained on average 0.60%, with the Nordic and Eastern European markets lagging behind. However, in Western Europe, the CAC 40, DAX 30 and the FTSE 100 indexes reached the highest value in 14-months throughout the overnight session. Earlier in the day, the Nikkei index closed almost 2% higher, near the highest value touched since September 09.
The trading volumes have been very low in the cash and futures equity markets lately. This is happening because of the upcoming Holiday Season, which forces most institutional trade desks to close their books a few days earlier. Trading volume and liquidity are expected to return to the market during the first part of January, especially since Q4 earning results are quickly approaching.
Sector Moves: Banks and insurers added the most points in European trade, both sectors advancing approximately 1%. The only sector that declined in Wednesday trade was food & beverages, but the losses were contained. From the opening bell, the food & beverages companies lost 0.10%, after U.S. regulators said that Nestle violated U.S. marketing rules. In Swiss trading, Nestle was down 0.50%
European semiconductor companies also advanced on Wednesday, following the announcement made by Micron throughout the prior U.S. session, that semiconductors sales have picked up on smart-phones. As such, the German listed Infineon and the French listed STMicroelectronics were trading up 2.20% and 1.50% respectively.
Upcoming Economic Moves:
08:30 EST Cad GDP Exp 0.3%, Prev 0.4%
08:30 EST Usd Personal Spending Exp 0.6%, Prev 0.7%
10:00 EST Usd New Home Sales Exp 442K, Prev 430K
10:30 EST Usd Crude Oil Invent. Exp -1.5M, Prev -3.7M
Crude oil was recently trading at $74.75 per barrel, higher by $0.35
Gold was recently trading down by $1.80 to $1084.90.
TheLFB Trade Plan of the Day is one of the six that are available to members on the major pairs each day, plus four Jpy based cross pairs, as well as S&P futures, oil, gold, and the dollar index.
