Afternoon comment courtesy of Spreadex – 31/0/13

Global markets continued to push forward today, but marginally, as key resistance levels impacted any substantial gains.  Updates from Diageo and Tullow captivated investors’ confidence in the equity markets and research notes which showed that UK-listed companies’ earnings seem to be beating European companies’ earnings for this quarter also provide bulls with further ammunition.  The best US ADP non-farm employment change figure since January and better-then-expected GDP data further helped. 

In addition, the few traders left in the markets today will be all hands on deck during the FOMC statement due for release later.  It seems the markets and, particularly the dollar going on its strength today, are bracing for speculation that the Federal Reserve will further indicate a preference for the slowdown of its asset purchases.  Thus, the long-standing debate as to whether equity traders have enough confidence to continue to buy stocks in the context of a withdrawal of stimulus aid, could finally be answered later today.