Market Volatility in US and Asia, Key BOE and ECB Meetings Later,06th June, 2013

Market volatility in US

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Now read uncertainty continues to cloud equity markets
The ADP private payroll survey data showed that private employers added 135,000 new jobs over the month of April. Expectations had been a rise of 167,000 jobs. May’s added jobs numbers will be out on Friday.
Also the ISM (Institute for Supply Management) releases their figures for May services index showing that their reading had risen to 53.7 from 53.1 in the previous month. While this is a positive gain and beyond the crucial 50 mark it still came below estimates of 54.

Stocks

Asian stocks did not react well to all the disappointing data or to the weak comments of PM Shinzo Abe in Japan, as many of the indices were close to 4 month lows. The Nikkei 225 reached 0.82 per cent lower while the Hang Seng in Hong Kong lost 0.87 per cent and the Shanghai Composite was down 0.11 per cent.
In Europe the stocks inched up ahead of the ECB and BOE’s statements due out later today. In today’s European early session the EURO STOXX 50 was up 0.12 per cent, the French CAC 40 gained 0.17 per cent and the FTSE 100 was up 0.02 per cent.
In the US, the stocks closed predictably lower with the DJIA down 1.43 per cent, the S&P 500 down 1.38 per cent and the NASDA down 1.27 per cent.

Forex

The US rallied from its losing position against the other currencies following the release of the data and was trading mostly up during Asian overnight session. The AUD dropped drastically to almost 20  month lows against the dollar, shedding 0.91 per cent. This came on the released of the Australian trade balance which fell to AUD 300 million in May from AUD310 million in the previous month. Investors had predicted a drop to AUD220 million.
The dollar made gains against the YEN but dropped 0.7 per cent against the EUR.

Commodities

Crude oil was the only commodity to move higher and rose by 0.34 per cent on the data releases. Gold and silver were trading lower, 0.07 per cent and 0.33 per cent respectively.

Today

Lots of data releases today including UK housing and BOE and ECB meetings then jobless numbers from the US. Today should be a volatile day for the markets , watch closely.