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Current Futures: Dow -11.00, S&P -2.00, NASDAQ -1.75
European markets are currently trading mixed, even though Asian shares closed higher. S&P futures are trading slightly under the 945.00 resistance level, the highest level touched since early November.
The European markets continued the same trend on Wednesday as they have in the last few days. Barclays led the declines among the financials, after plunging 14% yesterday after its Abu Dhabi investors’ sold a $5.7 billion stake. Carmakers opened slightly higher, as the bankruptcies of GM and Chrysler might increase the stake of the European car manufacturers in the U.S., which at present is the biggest market by value.
A release during the overnight session showed that the Australian GDP expanded 0.4% in the first quarter, even though the market expected to see the economy contract 0.1%. According to the latest reports, Australia is the only developed economy in the world that grew in the first quarter of 2009, a performance that once again shows the strength of the regional economy. Consumer spending grew 0.6% in the first three months of the year, having by far the biggest upside contribution to the GDP read. Exports also rose in the first quarter compared with the previous one.
TheLFB-Forex.com Trade Team said that the GDP report can be added to the green shoots theory. The staggering majority of Australian exports are commodities, and the report shows that demand is picking up again, as companies refurnish their inventories. Moreover, Australia’s largest trading partner is China, and demand is picking up in the economy that is to be the engine of the global recovery
Overnight, the Japanese Nikkei added 37.36 points (0.38%) to 9,741.67. The Australian S&P/Asx rose 61.90 points (1.56%) to 4,017.20. The U.K. Ftse declined 34.58 points (0.77%) to 4,442.44, while the Germans Dax declined 33.54 points (0.65%) to 5,110.52.
Crude oil for July delivery was recently trading at $68.20 per barrel, lower by $0.30.
Gold for July delivery was recently trading higher by $0.80 to $985.30.
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