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Current Futures: Dow +85.00, S&P +10.70, NASDAQ +12.75
European markets and U.S. futures surged higher during the overnight session, as investors return to the financial markets. Asian shares also moved higher, boosted by the commodity stocks, following the same template set in the last few sessions of trading.
European markets moved higher, following S&P futures, which managed to break above the 945.00 resistance area during the overnight session. This move also broke Friday’s resistance area, set during the NFP release that was not able to hold its value. If S&P futures manage to hold above the 945.00 area this time the road might be clear for a test of the November highs, around the 990-1000 area.
In European markets the vast majority of stocks headed higher. Every company member of the German DAX rose on Wednesday morning, while in the U.K. FTSE only eight companies declined out of the 102 members, of which all fell less than 0.5%. The same situation was seen in Japanese Nikkei trade, were only a hand full of stocks moved lower. TheLFB-Forex.com Trade Team noted that this reveals investor optimism, something that really has been lacking over the last two weeks, when global equity markets entered into a sideways move.
The main driver throughout the Asian session was the raw material sector, which benefited from the rally observed in the commodity market. This helped the Asian equity traders look pass poor releases, which showed that inflation at the wholesale level fell the most in 22 years in Japan, while machinery orders hit a 27-years low. Moreover, the rating agency S&P issued a warning on the Asian-Pacific region, saying that the huge deficit problems may cause rating downgrades on some countries.
Overnight, the Japanese Nikkei rose 204.67 points (2.09%) to 9,991.49. The Australian S&P/Asx gained 89.50 points (2.27%) to 4,024.40. The U.K. Ftse gained 66.83 points (1.52%) to 4,471.62, while the German Dax rose 89.09 points (1.78%) to 5,086.95
Crude oil for July delivery was recently trading at $71.20 per barrel, higher by $1.20.
Gold for July delivery was recently trading higher by $6.80 to $961.50.
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