Market sentiment improved overnight with US equity bourses higher across the board on better than expected employment and ISM non-manufacturing data. July ADP employment posted a gain of 42k, beating estimates for a reading of 30k, while ISM printed at 54.3, up from 53.8 a month prior. The news eased nervous investors after a flurry of disappointing data on Tuesday triggered a sell-off in equities, with the dollar index slumping to its lowest level in nearly four months. The Dow, the S&P, and the Nasdaq were higher by 0.4%, 0.6%, and 0.9% respectively. Asia Pacific markets were mostly firmer with the Nikkei 225 gaining more than 1.7% on better than expected earnings reports and positive data out of the US. The S&P/ASX 200 index was also higher by 0.5% after Australia posted its highest trade surplus on record on Wednesday. Treasury yields came off record lows, while the yen retreated from an eight-month high against the greenback on improving risk appetite. Investors remain cautious however, ahead of tomorrow's jobs report out of the US.
Commodities were generally lower with crude oil creeping back below $82 per barrel. Gold continues to hover just below $1200 per ounce, after reaching as high as $1203 yesterday in New York. The dollar index relinquished gains to trade at 80.66, with support seen just below at 80.60. The swissy and the loonie were the best performers against the greenback, both advancing nearly .6% on the session.
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