The Australian equity market is set for a small drop on the open today after the US equities edged slightly higher Friday evening. Investors were looking to the weekend IMF meeting for some concrete details on how the Greece debt crisis is going to be contained, the outcome was some band aid fixes along with some promises that they will act decisively to tackle the dangers confronting the global economy.
The SP500 index rose 6.87 points to close the week at 1136.43 while the Dow closed up 37.65 points at 10771.48.
The EURUSD (see above chart) is trading up from Friday close after German Chancellor Angela Merkel said the euro zone leaders needed to erect a firewall around Greece to prevent market attacks on other European states.
The NZDUSD has traded off lows of 0.7723 early Monday morning after a government report showed that the August trade deficit was wider than analysts had estimated.
WTI crude traded down from highs of 81.61 in the US session to as low 77.57 ending the week down over 9 per cent, this is the biggest weekly decline since May.
Gold futures traded down over 6.0 per cent from highs of 1750 per ounce to as low as 1628.75 as investors opted out of the precious metal for cash. Silver has been the hardest hit commodity continued south from highs of 36.25 to open today at 30.15 and trading as low as 29.28. Over the weekend the CME raised the margin for both the futures contract due to the increasing volatility in the markets.
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