Local Market Follows Strong US Leads With Early Gains
11.29 AEDT, Wednesday 27 February 2013
Local Market Follows Strong US Leads
With Early Gains
By Niall King (Sales Trader, CMC Markets)
After starting the week on unsure footing with weak Chinese PMI data and renewed Eurozone debt concerns, the Australian Market followed the US market’s strong lead overnight easing away from the 5000 point mark with early gains made in all the major sectors.
Tensions within the market early this week have been soothed by a variety of confidence-inspiring events overnight from the US. Federal Reserve Chairman Ben Bernanke's warmly received testimony to the Senate Banking committee that the Central Bank is not planning to curb stimulus anytime soon was compounded with stronger than expected housing and consumer confidence data.
The resulting appreciation of the US dollar against its Australian counterpart, trading at its lowest levels since October, has continued in early trade with the Aussie struggling to regain the losses it made overnight.
Some relief may come in the form of positive ABS construction data for the December quarter at 11.30am if this morning's reading breaches the expected 1.5%. Although more impact on the currency is likely to come from Thursday's much anticipated Capital Expenditure data.