Market Comforted By Stevens’ Comments
11.25 AEDT, Friday 22 February 2013
Market Comforted By Stevens’
By Niall King (Sales Trader, CMC Markets)
The Australian market has shrugged off Thursday's dramatic pull-back and opened strongly after receiving what has been viewed as reassuring comments about global economic conditions from RBA Governor Glenn Stevens in Canberra this morning.
Further falls in the US markets overnight amid concern that the US Fed would slow stimulus had been expected to drag on the local market in early trade. But this was defied as gains by all the major banks eased the local index back over the 5000 point mark.
Having been under attack overnight to the tune of a four-month low, Governor Stevens comments have also seen the Aussie dollar fight back strongly, up half a cent in early trade on the view that while keeping their options open the Reserve Bank may not be looking to ease policy further anytime soon.
Looking further afield, this evenings IFO Business Climate reading from Germany is likely to command the attention of international markets. A reading at or above the expected 104.9 may see some of yesterdays losses reversed across both the single currency and European markets.