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Market Talk - 01/03/2010

 

Trading News and Views:  01 March 2010 

Indices:

European markets:

Metal prices saw a rise after European stocks gained as investors returned to equityon Friday. London-based James Buckley, a director at Baring Asset Management, said: "At the margin, we are buyers of the market, buyers of risk. We are in the more positive camp and believe earnings can drive the market higher. We always knew it would be a bumpy ride and that is what we are seeing.”
(source: bloomberg.com).

An expert, Joshua Raymond, strategist at City Index, said: "The housing data was pretty shocking and the markets came off but they came back again and we have seen some buying back from the lows."
(source: reuters.com).

Britain's FTSE 100, Germany's DAX and France's CAC 40 rose 1.2 to 1.9 percent.
(source: reuters.com).

US markets:

Friday, saw markets rally after the GDP in the US grew at an annual rate of 5.9 percent, better than forecasted, according to the Commerce Department. Peter Jankovskis, co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois, said: "The dollar has declined somewhat and, in general, when the dollar has been declining, that's positive for equities. There was a lot of economic data this morning, most of it worse than expected."
(source: reuters.com).

Dow Jones  closed up 4 at 10,325.  The S&P 500 index was 1 better at 1,104. Nasdaq has added 4 at 2,238.
(source:sharecast.com).

Asian markets:  

Stocks in Asia, especially the Nikkei rose after currencies strengthened along with metal prices.  Hiroaki Muto, a senior economist at Sumitomo Mitsui Asset Management Co, said: "Structural problems have become most evident in Europe, but emerging markets free from those risks are still growing at a rapid pace. Economic data are turning positive, except in Europe.”
(source: bloomberg.com).

Industrial Output data from Japan rose 2.5 percent in January, which also boosted the Nikkei.  Soichiro Monji, a chief strategist at Daiwa SB Investments, said: "The strong industrial output data was positive for the market. Gains also follow the market's decline over the past few days, which was probably overdone. Generally speaking, the economy and corporate earnings are improving and that helps push up stocks. Still, going forward, a lot will depend on other factors such as Greece's problems."
(source: reuters.com).

The benchmark Nikkei rose 24.07 points to 10,126.03.
(source: reuters.com).

Forex:

The dollar fell against the euro and the yen after lawmakers from Germany said that Greece's aid may come from state-owned lender.  Fabian Eliasson, head of currency sales at Mizuho Corporate Bank Ltd. in New York, said: "This was the first specific bit of news that Europe will give some support financially to Greece. There have been talks but no promises. The market was oversold in euros. Something like this comes out and people are reacting to the news.”
(source: bloomberg.com).

The euro gained 0.6 percent to $1.3631. The dollar fell 0.1 percent to 88.97 yen. The euro lost 1.7 percent against the dollar and 3.2 percent against the yen.
(source: bloomberg.com).

Commodities:

Oil Trading:

Oil rose after the US GDP grew at 5.9 percent annual rate signaling fuel demand. Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut, said: "The positive GDP number is putting upward pressure on prices. We are going to be focused on anything that gives an indication of where the economy is going.”
(source: bloomberg.com).

US light crude for April delivery fell $1.83 to end the session in New York at $78.17 a barrel.
(source: sharecast.com).

Gold Trading:

Gold rose on speculation that Greece's debt may increase demand for gold as an alternative investment. Matt Zeman, a metals trader at LaSalle Futures Group in Chicago, said: "You’ve got to look to play gold on the long side. Fiat currencies continue to lose credibility. Even if Greece gets rescued, there will be another country in line with their hands out. People are flocking to gold to shield themselves from the volatility in the currency markets.”
(source: bloomberg.com).

The April contract rose $11.30 to $1,108.50 an ounce in New York.
(source: sharecast.com).

Bonds:

(Yields move inversely to bond prices)

US Bonds:

Government treasuries gained after existing home sales data fell. George Goncalves, head of interest-rate strategy at Nomura Holdings Inc, said: "It’s been a perfect storm in the bond market this week. Poor economic data, strife in the sovereign arena and poor positions created the perfect storm for yields to head lower. There are no real reasons to sell this market, given the uncertainties.”
(source: bloomberg.com).

Ten-year yields declined three basis points to 3.6%.
(source: sharecast.com).

European Bonds:

German government bonds advanced as concern grew over Greece being downgraded.  Patrick Jacq, a senior fixed-income strategist in Paris at BNP Paribas SA, said: "For a large part, the moves have been mainly due to risk aversion, especially sovereign risk in the euro zone. We saw Greece again under pressure.”
(source: bloomberg.com).

Ten-year bunds yield fell one basis point to 3.1%.
(source: sharecast.com).

 

 

Economic Calendar 01 March 2010:
 
13:30 pm Gross Domestic Product (MoM) (Dec)  - Canada:
The Gross Domestic Product released by the Statistics Canada is a measure of the total value of all goods and services produced by Canada. The GDP is considered as a broad measure of Canadian economic activity and health. A rising trend has a positive effect on the CAD, while a falling trend is seen as negative (or bearish) for the CAD.
Previous Rate: 0.4%.
Consensus Rate: N/A.
(High Volatility).




  
 Recent Market Action:
 InstrumentPrice ChangeIndicator
INDICES DOW

0.04%

UpUP

 NASDAQ 0.18%

UpUP

 S&P 0.14%

UpUP

 FTSE 1.45%

UpUP

 CAC 1.87%

UpUP

 ESTOXX

1.64%

UpUP

 DAX 1.20%

UpUP

 HSI

1.03%

UpUP

 
NIKKEI 0.24%

UpUP

 CURRENCIES EURO 0.088%

DownDOWN

 YEN 0%

DownDOWN

 
GBP 0.0144%

DownDOWN

 COMMODITIES GOLD 0.94%

UpUP

 
 OIL 1.70%

UpUP

 BONDS  BOND 30
0.018 yield change

DownDOWN

  BUND 10
0.009 yield change

DownDOWN

 

(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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