Stocks in Asia rise following upbeat data from the US and Australia.

  • Australia's central bank said the economy will expand at more than three times the pace forecast in August, and signaled it will continue to lead the world in raising interest rates.  The Aussie climbed against almost all of its major counterparts.  Yesterday in the US, the Dow Jones Industrial average climbed 2.1%, the most since July.  Data from the Labor Department showed initial jobless claims dropped to 512,000 last week, the lowest level since January, and worker productivity climbed at a 9.5% annual rate in the third quarter, the fastest pace in six years.
  • Today's NFP report may show US employers cut the fewest jobs in October in more than a year as economic recovery eased the worst labor-market slump since the 1930s.  According to market median forecasts, payrolls fell by 175,000 workers, the smallest drop since August 2008 and the unemployment rate climbed to a 26-year high of 9.9%.  The latest projections would bring total jobs lost since the recession began in December 2007 to 7.4 million, the biggest decline of any economic slump since the Great Depression.
  • The greenback could be heading for a weekly loss against the majors if the NFP reports fewer job cuts in the US, boosting demand for higher-yielding assets.  The EURUSD briefly traded above 1.4915 yesterday before settling at 1.4864.
  • Both the Bank of England and the ECB left their policy rate unchanged at 0.5% and 1.0% respectively.  The Bank of England slowed the pace of bond purchases, by only increasing their quantitative easing program by 25BLN sterling against higher expectations.  Trichet indicated unlimited 12-month loans to commercial banks won't be extended after next month's operation.

Currency to watch out for: EURUSD & GBPUSD

  • The EURUSD pivot point is at 1.4825 with a preference to enter into long positions at 1.4835
  • The GBPUSD pivot point is at 1.6525 with a preference to enter into long positions at 1.6535

Today's calendar and market movers:

  • Germany Factory Orders month on month expected to drop to 1.0%
  • US Non-Farm Payrolls expected to drop -175,000 in October, a significantly lower figure when compared with -263,000 in September, -304,000 in July and -463,000 in June.  The reduction in payrolls probably lifted the unemployment rate to 9.9%, up 0.1% from September.
  • The Group of 20 is due to meet about a range of global economic issues including bank bonuses and macro-economic exit policies, in St. Andrews.

Stocks:

  • US Equities rallied on Thursday, with gains broad based, after better than expected weekly jobs and non-farm productivity data.  At the closing bell the Dow closed up 2.08%, the S&P closed up 1.92% and the NASDAQ closed up 2.4%.  The NSADAQ slightly outperformed its peers after Cisco reported earnings that topped analysts' estimates and confirmed it would buy back 10BLN USD.
  • As of 07:00 GMT the Nikkei is trading at 0.74% and the Hang Seng at 1.57%.