Title: Commodity Market Crash
There were muted moves on global equity markets overnight, in stark contrast to commodity markets, where oil plunged to its lowest levels since the start of 2014.
It was a mixed performance on Wall Street, where the S&P500 again failed to charge through 2000.
The ISM PMI read signalled US manufacturing growth accelerated last month at the fastest pace in three years.
However the data had little impact on US markets, which appear to have priced in most of the good news on the economy.
Across the Atlantic, European equities were capped by uncertainty surrounding the ECB’s timetable for fresh stimulus.
There was a sea of red in commodity markets. Oil nosedived another three percent amid mounting concerns energy demand is being outpaced by rising global supply.
Gold also took a major hit, with selling pressure coming from a jump in the US dollar.
The greenback rose strongly versus the yen, as the better-than-expected American manufacturing data raised expectations the Fed will stick to a mid-2015 timeframe for raising interest rates.
Elsewhere, the Aussie fell through 93 US cents following yesterday’s RBA meeting, which left the door ajar for further interest rate cuts.