Once again, Greece is the word which is governing global market activity at the moment. Overnight the premise of a grand rescue for the Greek economy sent US equity markets north bound, with investors mustering the courage to jump back into higher yielding assets. This was evident in solid greenback weakness against major counterparts. The US dollar index which measures the dollar's value relative to six major foreign currencies is currently down 0.65 per cent to 79.78.
Europe's largest national economy, Germany released Consumer Price Index overnight - the key measure of inflation contracted 0.6 per cent in the month of January, representing annual growth in line with estimates of 0.8 per cent. German Trade Balance beat estimates recording a EUR16.7b surplus in December, declined from the downwardly revised EUR17b surplus in November. The UK Good Trade Balance recorded a deficit of GBP7.3b widening from Novembers deficit of GBP6.8b. Economist had predicted a narrowing deficit of GBP6.6b. UK Total Trade balance also fell short of estimates recording a deficit of GBP3.3b against the previous GBP2.9b deficit.
The surge in US equity markets revived investor confidence, evident in a solid night from key commodities. This helped the Aussie dollar resume an upward trajectory reaching highs just shy of 88 US cents. Locally this morning will see the release of the Westpac Consumer Confidence figures for February - In January the index increased by 5.6% in January from 113.8 in December to 120.1.