The Aussie market looks set for another day of gains as European and US markets post their 4th consecutive day of gains. The SPI futures are currently trading up 46 points.
News that major central banks across the world had agreed to lend money to European banks, relieved some of the recent funding pressure.
The Dow Jones Industrial Average closed at 11433.18, up 186.45 or 1.66%. Gains were led by the financial and energy sectors although all sectors posted gains for the day.
Markets rallied as the European central bank announced that it would reintroduce three-month dollar liquidity operations in the 4th quarter. The ECB will be assisted by other major central banks and will be introduced in three separate operations before years end to help the banks.
As the major central banks coordinate their efforts to flood the markets with US dollar. The EURUSD (see chart above) reached highs of 1.3937 overnight as the US dollar was sold off heavily. The US dollar lost ground on all major pairs except the Yen.
Gold fell down as investors dumped the safe haven asset sliding to the lowest level in 3 weeks. WTI oil traded higher as the US dollar fell closing at $89.40.
SPI 200 future
FTSE 100 Index
Bloomberg, Dow Jones News