So what was the most important market milestone reached overnight for the local market today?
Was it the Standard & Poor’s 500 Index breaching the 2,000 point level for the first time, the Euro hitting an 11 month low against the greenback, or the global iron ore price dipping lower, to under $US89 a tonne?
Judging by the small, eight point rise tipped for the local market by the share price futures contract, it was the antics on Wall Street which will be the big influence – at least at the start trading.
The S&P 500 closed 0.1% higher at 2,000 points, after hitting an intra day high of 2005.4.
It was in fact quite a hesitant day for the index and Wall Street-trading volumes for the day were only 4.5 billion shares, around 20% less than the average according to Bloomberg data.
European markets had a good day with some reaching their highest levels in a month.
German bond prices continue to rise, driving yields even lower with the 10 year bond yielding 0.94%, still less than the all time low of 0.926% hit on Monday.
The two year bond closed with a negative yield of 0.01%, after closing Monday at -0.04%.
The markets in Europe are wary of the August inflation data due for release later in the week which could show the eurozone tipping closer to deflation.
July inflation was an annual rate of 0.4%, and another weak reaidng will increase pressure on the European Central Bank to be more decisive at its September meeting next week.
But will the continuing weakness in iron ore prices undermine confidence today, as it has done on several previous days?
Overnight the price of 62% fe (iron oxide) iron ore for immediate delivery to the port of Tianjin in China fell to $US88.90 a tonne, down from its Monday closing price of $US89.20.
The decline marks another two-year low for the commodity, which has fallen close to 35% so fart this year.
It is now at its lowest since September 2012 when prices fell as low as $US86.70.
The ASX 200 Index rose 2.7 points, or 0.05% in a tortuous day of trading yesterday to end on 5637.
The All Ordinaries Index, meanwhile, closed up 1.7 points, or 0.03%, at 5634.5.
BHP Billiton shares eased 0.1% to $37.22, Rio Tinto lost 0.7% to end on $64.11, while Fortescue Metals down shares lost 1.4% to end at $4.28.
The market reaction for this fall in the iron ore spot price is far more accommodating than earlier in the year and two years ago.
The question is for how long will this stance last before some investors panics and starts attacking the price of Fortescue (the prime target for shorting) – if the spot iron ore prices dips to $US85 or lower?
