Wall Street bounces back

What a performance from the major US indices this morning!

Despite the

·         Weak global data last week

·         Major credit rating agencies indicating that a Greek rollover to be a credit default

·        Moody’s downgrading Portugal’s credit rating to junk on Tuesday. Sovereign CDS rose much higher for Portugal, Italy, Ireland, Spain and Belgium

·         China markets were dragged lower by mainland bank stocks

·         China raised benchmark interest rates for a third time on Wednesday

·         Weak US economic data – ISM growing at a slower pace

US investors ignored all the ‘news’ and pushed the major indices much higher!

Investor’s mindset. The global mindset could be in synch most of the time or they could be different or individual as in Asia, Europe and US. This is a classic case where the US mindset forms their own and deviate from the norm (and despite weak US data, US debt worries, slow global growth concerns)

For the record,

·         The US dollar index rose to 75.01

·         Gold closed (up) around US$ 1.529

·         Crude oil (up) at US$ 96.89

·         VIX (down) at 16.34

·         The commodity currencies; Aussie (1.0698), Kiwi (0.8269) & Loonie (0.9652) and

·         The Euro and Gbp at 1.432 and 1.60 respectively.

Two major events are in store on Thursday – ECB MPM and on Friday – US Nonfarm payroll and Unemployment rate.