The Australian equity market is expected to open up higher despite a mixed night on overseas markets. Most markets were up over night and it wasn't until the final hour of trade in the US until the markets gains were erased. The SPI futures are currently up 33 points to 4078.
Once again it was the Greek debt fears that caused the late selloff, the Dow finished 7.65 points or 0.07% higher to close at 11408.66. Both the S&P500 and the Nasdaq closed the day lower falling 0.17% and 0.86% respectively.
The US markets, in absence of any other major announcements most likely will tread water until the much anticipated Fed policy statement late tonight. The late sell off was on the back of reports that that the International Monetary Fund, European Commission and European Central Bank were expected to return to Athens in October, suggesting no immediate help to stave off the country's debt crisis.
The EURUSD traded stabilised and appears to have found some short term support around the 1.36 region. It failed to breach the 1.36 market yesterday after the news of the downgrade of Italy's debt.
Oil futures halted a two-session slide on Tuesday that had erased more than 5% of their value on optimism that US central bankers will soon announce steps to stimulate the US economy. West Texas Intermediate was last quoted at US$86.89 per barrel.
Gold futures rose back above $1,800 an ounce as investors returned back to the safe haven asset. Gold continued to draw support as investors remain cautious on the outlook for Europe's debt crisis and the Federal Reserve's policy committee meeting. Spot gold was last quoted at $1,803.25. Comex gold futures improved $30.20 (1.70%) to $1,809.10.
SPI 200 future
FTSE 100 Index
Bloomberg, Dow Jones News