Global Market Wrap: Ahead of Apple, All Looks Rosy

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Global Market Wrap

Ahead of Apple, All Looks Rosy

Equity Futures: Dow +41.00. S&P +5.70. NASDAQ +10.25. Japanese Nikkei +30.00. German Dax +3.00.

European Trade: European markets saw positive momentum around the opening bell, even though the Asian markets closed the trading session mixed. Most European indexes are advancing, as the heavyweight commodity companies posted important gains. Each of Europe’s biggest indexes, the Dax, FTSE, IBEX and CAC 40 are up approximately 1%, denoting strong momentum seen in the overall global market recently. 

The more volatile, and therefore more risky, Eastern European equity markets gained 0.50% on average in Monday trade, underperforming their Western counterparts. Most stocks from this region failed to find the momentum to push higher and easily hold. 

In the twelve months of trade since the Lehman Bros debacle the global daily trading ranges on equity trade has increased from around 0.5% to above 1% a day, in a reflection of the market’s inability to easily value risk. Fair value has created wider ranges each day, as speculative risk weighs the ebbs and flows of the post-credit crisis world.

S&P Futures: After an initial sell-off seen during the early Sunday open, S&P futures found the strength to recover every point lost earlier and even add some more. Right now, the S&P futures are trading near the 1090.00 resistance area, where the market had previously topped. 

Sector Moves: The commodity and the food and beverage sectors were responsible for most of the gains seen during the European session.

Commodity companies were pushed higher mainly by oil’s test of the $79.00, the highest value that oil has touched in a year, and on the rally seen in some metals. The food and beverages sector advanced after the Swiss-listed company, Nestle was upgraded to “buy” by UBS. In Monday trade, Nestle was up 3.5%, being the one of the best gainers on the Swiss Stock Exchange, together with Swatch. 

In German Dax trade, the gains were led by the carmaker sector, following the comments made by Daimler’s CEO, which said that the company would overshoot its saving target of 4% in 2009. This has helped Daimler advance 1.50%, while its rivals from Volkswagen gained 2%. 

Crude oil for November delivery was recently trading at $78.30 per barrel, lower by $0.20. Crude oil lost a few points, after it failed to break above the $79.00 area.  

Gold for November delivery was recently trading higher by $4.10, to $1055.60. Gold is currently testing the $1055 area, the same place where the market topped in Friday trading. A break above this level, together with the dollar weakness seen in the market will help gold gain some additional points.