Aussie Dollar, Oil And Stocks Rally

Aussie Dollar, Oil And Stocks Rally

There is no papering over the fact that I have no idea what drove the huge rally overnight. Initially the rally in stocks was blamed on a rumour (since debunked) that Romney was ahead in the crucial state of Ohio but the fact that the rally held and that Oil kept rallying says that something else is going on.

All the economic news was pretty weak overnight with German factory orders down 4.7% in September for the 4th monthly decline and much worse than the expected fall of -1.5%. Markit's Eurozone Composite PMI fell in October to 45.7 from 46.1 in September, which now brings the stretch of months below 50 to 9. In the UK the NIESR GDP estimate came in at 0.5% from 1% last. Redbook sales in the US were off 0.6% for October and the New York ISM fell to 45.9 in October from 52.9 last. Canadian data was equally poor with the Ivey PMI falling to 58.3 from 60.4 sa last time.