Equities: Stocks finished up over 1% today, the rally coming from an improved outlook for Greece and further speculation of some sort of bailout this week. Consumer spending came in above estimates further contributing to the rally. This friday will be the US non farm payrolls and unemployment rate, always a market mover. Last month the market moved down heavily in the two days preceding the report, in anticipation of bad data. The data turned out to be on the good side, sending stocks up. This month the expectation if for a significant loss of jobs due to the bad weather in february, but that this should only be temporary. Unemployment is expected to inch up to 9.8%. We could see some falls later in the week if last month's situation repeats itself, so will keep a look out.
Currencies: The Pound plunged today against the Dollar, on UK election poll results showing the possibility of a hung parliament. This is only the beginning of further downward pressure on the Pound. As the election gets closer, and the fiscal picture continues to worsen, the outlook for the Pound is not good. The Euro fell against the Dollar, this is a reversal of the usual correlation with stocks. Whether we'll see the Dollar continue to strengthen while stocks rise is anyone's guess, but this could be indication of the divergence between US and the Eurozone economies to come.
Commodities: Oil fell today, against diverging from its previous correlation to the equity markets. The stronger Dollar was the primary driver of the oil price today. Oil will probably be moved by the US non farm payrolls report so we'll keep a watch on it closely in the run up to it. Gold was flat today, unmoved by the Dollar's rally.
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