The Dow Jones industrial average closed over the 13,000 level Tuesday for the first time since summer of 2008, though profit taking ahead of US cash session open indicates a open below 13,000.
The S&P and Nasdaq futures are indicating a slightly higher open (+.15%) this morning as the ECB promised more liquidity to their members.
More specifically the ECB will lend 800 financial institutions 529.5 billion euros ($712 billion) over a there year period.
In reaction to the ECB liquidity injection Eurodollar futures are slightly down to the 1.344 level after a roller coaster overnight session with a high being 1.3487. The DAX and the CAC both rose half a percent in European trading, Asian exchanges are also green in reaction to US and European futures.
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Commodity markets showed risk is bid once again overnight following the equity index’s lead, with crude oil futures regaining quite a bit of ground lost yesterday afternoon; trading as high as 107.40 before relenting a bit.
Both gold and silver reacted to the ECB news, whipsawing up and down; gold rallied into 1792.2 before finding footing around the 1788 level.
Federal reserve chairman Ben Bernanke will deliver a semi-annual testimony on monetary policy and the outlook for the US economy today from Washington. Mr. Bernanke’s testimony is sure to inject a bit of volatility into the index’s based on past testimony’s from the reserve chairman.
In stock specific news, Apple computers is trading in the pre market at a new all time as high of 541 in anticipation of the iPad 3 launch. First Solar, maker of solar panels shares are down 7% to 33.60 as the company reported less than stellar results yesterday after the bell.