Market Update 10/25/2012

Markets are rebounding at the European open. BASF and Unilever posted better than expected results. Asian markets and US futures all climbed.

ANZ Group reported record full-year profit on the back of cost-cutting and improving domestic and overseas business. The stock fell thou as the company warned of challenging times ahead.

Overall Australian shares rose 0.1 percent in patchy trading as the market consolidates recent gains. The 4,500 region has shown to be support for the S&P/ASX 200 index. The Australian market since June has been on a steady and quiet climb.

Investors will be watching durable goods orders and jobless claims out of the US for fresh signs of health in the US economy.

In forex markets, the yen weakened to the lowest level against the greenback in 4 months on speculation that the Bank of Japan will expand monetary stimulus next week. The Kiwi and the Aussie held their gains against the USD and the euro was trading higher as well.

US treasuries fell ahead of a 7-year note auction. Treasuries were also lower due to the buying in the equities markets. Risk traders were stepping back in to buy the dip today. German bunds were also lower ahead of money-supply growth report used by the ECB to measure inflation.

Oil rebounded after 5 days of losses. Expectations are running high that data out of the US today will be good.  December crude oil futures were last at $86.51, up $.78.

Gold and silver rebounded as investors boosted holdings in exchange traded products to a record. Gold was last at $1717.50, up $15.90 and silver was at $32.22, up $.60. The Fed’s QE policy is still intact and investors still want to hold precious metals.

Grains were relatively unchanged in quiet trade. Corn was last $756 a bushel, wheat $886 and soybeans at $1567.

Stay posted for latest updates and good luck trading!