The Before 24…
Global market news for your next twenty-four…
Good economic data and a reprieve from higher oil prices helped global markets rally.
Asian markets closed higher in their Tuesday trading session as oil prices recede slightly and investors look toward tomorrow and what news the LRTO will bring to the markets. The Nikkei was added 88.59 points hitting a 7 month closing high. The Shanghai added 4.79 on reports the Chinese government has softened it stand on local government funds. Now allowing banks to lend money to local governments to fund projects. The Hang Seng rallied 350 points as investors optimism soared with higher corporate earning.
European markets closed lower as the debate continued over the effects of the higher gas prices on the global economy and continued Greek debt issues. Not helping investors jitters comments from Germany Chancellor Angela Merkel saying there is no 100% guarantee a new Greece bailout package would succeed. Shortly after the close Germany’s parliament approved the Germany bailout plan despite Merkel losing part of her “majority” in the vote. Investors jitters increased as the LTRO ( the European version of the US tarp) edges closer. The last LTRO was held in December and caused risk appetite among investors to die off. Most analyst are predicting the results of this weeks action will give some investors the direction they may have been looking .
European markets traded slightly higher in their early Tuesday morning session as investors wait for the LTRO tomorrow. This despite the news late Monday that S&P has officially down Greece to selective default. investors and the global will have to wait to see if the ISDA, the official body who will decide if it really is a default and cause the CDS (Credit default Swap) to kick in.
The US markets closed mostly flat in their Monday trading session. The Dow closed down for a second day losing 1.44 points and again staying under the illusive 13K number. The trend of mid morning reversals continued. The US markets all opened down, including the DOW by triple digits rallying back only to rally throughout the session . A better than expected US housing reading and Dallas February manufacturing active grew faster than in January helped fuel the markets rally. The S&P rose 1.86 points while the Nasdaq notched it’s third straight day of gains adding 2.41 points.
The commodities picture was mixed on Monday. The WTI snapped it’s 7 day winning streak closing down. Meanwhile Gold saw a $3.10 gain. Food commodities were all higher Monday. Corn closed in the green despite strength in the dollar and a new “rumor” that the amount of corn acreage planted this spring may increase due to record prices in the last year. Soybeans closed higher for a 6 consecutive day and reached five-month highs. helped by projections of a smaller than expected crop from South America may cause additional export demand for the US. Wheat rode the rally wave Monday traded higher. Aided by short covering of positions and spillover of supply from it’s best friends corn and soybeans.
The Bond markets were slightly higher across the board as Euro worries and the effect higher gas prices will have on GDP (Gross Domestic Product).