AM Report 13th March 15

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Global Wrap - We Call The S&P/ASX 200 Up 48
Overnight markets rose after data from the US indicated that the Fed might be inclined to stay on its “patient” side for a while. The
result comes weaker than was expected at 0.3%MoM growth, and even after stripping volatile components (Auto and Oil), it still
came in under, at -0.1%. Severe weather over the period dampens holiday excitement.
New unemployment claims for the month of February came in better than expected, by16,000. Citi also passed the banking stress
test, which it previously failed miserably, with weaker outlook on tech pressured by computing chip maker Intel. Intel makes
computer chips for Apple Macbooks. Tech rose 0.5% compared to Financials at 2.2% and Utilities at 2%.
European markets showed mixed signals, with the DAX coming in flat at -0.1% and the FTSE 100 up 0.6%. Mining shares in
London also showed mixed signals, despite flat Iron Ore prices up 0.6% at USD/T$57.97, Uranium flat and Tin down 1.2%.
Treasury yields are up again, whilst the Treasury sold USD$13bn of 30yr bonds. US 2yr yields are down 0.02%, while 10 Year
Notes are up 0.01% to 2.12%.
All major currencies rose against the US Dollar in early trade, and continues to hold ground after weaker than expected retail
sales. The US economy is driven by two thirds in consumption, compared to investment. The Euro rose from touching lows of just
below 1.05, reaching a 12 year low, currently holding 1.0623, losing 12% from highs. The Aussie rose from lows of 76US cents to
77.03US cents, whilst the Yen held dollar movements as it seeks to break solidly into USDJPY122 territory.
High impact data coming out will be the European consumer price index (CPI) for February, coming out next Tuesday, as well as
YoY data and employment changes. This will soon be followed by FOMC policy statements on Wednesday.