US Central Bank Surprised Markets Extended Open In Australia
US Central Bank Surprised Markets; Extended Open In Australia
By Chay Flack (Equities Dealer, CMC Markets Stockbroking)
The US central bank surprised markets last night by not reducing the bond stimulus as was widely expected, sending the US market to record highs.
Ben Bernanke has kept the chance of a drawdown this year on the table as he keeps an eye on economic data but emphasised that there is no fixed calendar schedule. The stimulus will continue to see the US operating irrationally as bad market news will be seen as positive to keep the stimulus in play and good news is likely to see a fall in the US market. The Dow Jones is up 147.21 points (0.95%).
The confidence in the US has seen a push in the Australian dollar at 95.05 US cents. This is up 2.58 cents this week from Friday’s close.
We are seeing green across the board as the Australian futures are up 61 points. There is an extended market open this morning due to double witching (expiry of futures and options) where we will see the market full open by 10:16:00 (+/- 15 seconds). This can see additional volumes trade in the market open as institutions look for trading opportunities.