Talks of Euro power brokers cobbling a rescue package for Spanish banks saw risk gain a bid tone in overnight trading and the positivity was brought over to the Asian session, with equity markets making strong gains across the board.

While the majors held on to overnight gains, fresh advances were not seen, not until the AUD employment report was released. May employment numbers gained 38.9k, with full time employment seemingly gaining at the expense of part time employment.

US indices closed sharply up yesterday at their session highs. The Diversified Financials and the Auto Components sectors strongly outperformed while the Food & Staples retailing and the Household & Personal Products sectors were the worst performing sectors. The S&P 500 (1315.13) remains below its 20d moving average (1318.1 - downward slope) and 50d moving average (1360.5 - downward slope). The index crossed back above its 200d moving average.

 

Posted by Mike Moloney | Account Executive