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Trading Resources Daily Market News Market Talk - 09/03/2011
Trading News and Views: 09 March 2011Indices:European markets:European stocks namely the FTSE, DAX and the CAC gained on Tuesday after concerns of oil supply not sufficient relaxed as Kuwait said that it is in talks with OPEC to increase production. Mark Priest, senior equities trader at ETX Capital in London, said: " Looks like we are in for a reasonable rally today, with the fall in the oil price calming investor nerves. But the focus will remain on the Middle East."
Across Europe, the UK’s FTSE 100 rose 0.2 percent , the DAX advanced 0.4 percent and the CAC 40 surged 0.3 percent. US markets:The DOW, Nasdaq and the S&P rose after oil prices fell yesterday. Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago, said: “At the moment, I think we just remain nervous -- the situation in the Middle East is still fluid. We'd like to see a little more clarity there, and we certainly don't have that." (source: reuters.com). The Dow Jones Industrial Average rose 64.56 points at 12,154.59 ,the Standard & Poor's 500 was also rose by 6.54 points to 1,316.67 and the Nasdaq rose 12.61 percent to 2,758.24. (source: reuters.com).
Asian markets:The Nikkei rose after investors bought as oil supply concerns relaxed. Koichi Ogawa, chief portfolio manager at Daiwa SB Investments, said: “If oil stays in a $100-$120 per barrel range for around half a year the global economy could see a severe slowdown, pushing investors away from stocks, so everything depends on the Middle East now. Shares of exporters such as automakers are being pressured by higher oil prices. At the same time it's also hard to buy stocks tied to domestic demand due to political turmoil, with lack of trust in the government undermining the mood of consumers." The benchmark Nikkei advanced 0.2 percent at 10,525.19. The euro moved upwards yesterday against the yen and the dollar, after not so good German Factory order numbers, prompting the ECB to consider their interest rate rise. Joseph Capurso, a currency strategist in Sydney at Commonwealth Bank of Australia, said: “If you are looking at the big economies in Europe, things are certainly improving, and leading the way is Germany. With the ECB being so hawkish and the Federal Reserve being so dovish, we expect the euro to keep tracking higher.”
The euro rose to $1.3975 against the dollar. The greenback was at 82.36 yen. The euro rose to 115.10 yen. Oil Trading:Oil prices fell along with other commodity prices after Kuwait's oil minister said that OPEC may be raising oil output to fill in supply demands. Zachary Oxman, managing director of TrendMax Futures, said: “It's profit-taking as we have a stronger dollar. Certainly, it's a rotation out of the 'long gold, long metal, long energies' trade, and stocks seem to be the beneficiary of it." Crude Oil for April delivery fell 42 cents to settle at $105.02 a barrel. (source: reuters.com).Gold Trading:Gold also fell after oil prices declined and equities rallied. Zachary Oxman, managing director of TrendMax Futures, said: “It's profit-taking as we have a stronger dollar. Certainly, it's a rotation out of the 'long gold, long metal long energies' trade, and stocks seem to be the beneficiary of it." US Gold futures for April delivery rose $7.30 an ounce at $1,427.20 an ounce. Bonds: US Bonds:The longer dated US Bonds fell after investors abandoned bonds and investors were looking for concessions in the $66 billion debt sale by the government. Jim Sarni, managing principal at Payden & Rygel, with more than $50 billion in fixed-income assets, said: “The shorter end benefits because the Fed is buying and there's safety demand due to events around the world. First, geopolitical risks are driving people to safety, and second, the risk that rates will rise as the economy continues to rebound drives people to look for opportunities on the shorter end of the curve." Yields on 30-year notes fell to yield 4.66 percent. German Bonds:German bonds fell on speculation German economic growth may shift pressure on the Central Bank to raise interest-rates . Marcel Bross, a fixed-income strategist at Frankfurt-based Commerzbank AG, There is quite a lot of peripheral supply that needs to be digested and apparently we’re struggling to find more buying interest at these levels. We have these important meetings coming up, where we see some potential for disappointment.” Ten-year german bonds rose 3 basis points to 3.31% (source: bloomberg.com).Economic Calendar 09 March 2011: (Medium Volatility). 10:30 am EIA Petroleum Status Report : US The Energy Information Administration provides weekly information on petroleum inventories in the US,whether produced here or abroad. The level of inventories helps determine prices for petroleum products. Petroleum product prices are determined by supply and demand - just like any other good and service. During periods of strong economic growth, one would expect demand to be robust. If inventories are low, this will lead to increases in crude oil prices - or price increases for a wide variety of petroleum products such as gasoline or heating oil. If inventories are high and rising in a period of strong demand, prices may not need to increase at all, or as much. During a period of sluggish economic activity, demand for crude oil may not be as strong. If inventories are rising, this may push down oil prices. Recent Market Action:
(percent changes based on previous day's underlying market data, for indication only)
Sources include: Bloomberg.com , Reuters.com, Fxstreet.com, Economicnews.ca, g20.org and FT.com (Any opinions expressed in these updates do not reflect the views of the company, and as such should not be taken as trading advice.)
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