Market Watch

A jump in China’s iron ore demand saw a renewal of risk appetite in the financial markets. This helped ASX rise 0.8% to close at 5476, further boosted by a revenue beat and dividend upgrade from NAB. Meanwhile in Europe ECB President Draghi managed to steal the limelight from Fed Chair Janet Yellen.

Mario Draghi indicated a strong signal that the ECB possess a challenge with deflation in the Eurozone and it is prepared to act, commenting that the ECB will adopt some sort of easing measures in June. Testifying to the US Senate, Yellen largely reiterated her previous day’s messages that interest rates are unlikely begin to rise until the economic conditions in US improve further.

Overseas equity markets rallied taking a lead from the Asia on the back of better than expected Chinese Trade balance data. In Asia the Nikkei finished up 0.93% and Hang Seng was up 0.42%. At close all the stock markets in US were up except Nasdaq due to recent crash in Twitter shares.

In commodities space Ukraine tension somewhat subdued demand for gold. The yellow metal traded sideways at $1289/oz while Oil dropped 0.5% to $100.25. Copper got a boost thanks to the Chinese data and traded at $3.08/lb.

The AUD rose to a three week high as job numbers surprised the market adding 14,200 jobs in April, smashing the forecast of 8,800 jobs. The unemployment rate remained firm at 5.80%. Trade figures in China helped improve overall sentiment in the Chinese economy and this carried over to our market, pushing the Aussie Dollar higher. Chinese exports climbed 0.90% in April from last year and imports gained 0.80% leaving a trade surplus of $18.46 billion.