Trading News and Views:  03  March 2010 

Indices:

European markets:

Shares in Europe ended up higher yesterday as Banks were the biggest gainers. Adding to that, firm metal prices supported the miners.  Mike Lenhoff, chief strategist at Brewin Dolphin said:  "The earnings results that we're seeing have been very good.   The recovery that's coming through globally is showing up in better revenues and there is a green light out there for stock markets because the Fed is not going to change interest rates for some time."
(source: reuters.com).

Britain's FTSE 100, Germany's DAX and France's CAC 40 rose between 1.1 and 1.45 percent.
(source: reuters.com).

US markets:

US stocks on tuesday ended up slighty higher as investors pulled back their recent gains in few big-cap technology and bank shares, adding to this, mergers and acquisitions supported few selected sectors. Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles said:  "The market is getting a little tired. The market is a little overbought and I can't say it's completely unexpected to see things take a little bit of a pause."
(source: reuters.com).

Dow Jones  closed up 0.02 percent at 10,405.98.  The S&P 500 index was 0.23 percent  better at 1,118.31. Nasdaq has added 032 percent at 2,280.79.
(source:sharecast.com).

Asian markets:  

Stocks in Asia rose as US consumer spending was better than expected and also there were gains in chip-linked stocks. Kenichi Hirano, an operating officer at Tachibana Securities said:  "A majority of investors don't appear to be bearish about the outlook for the global economy, but they still can't actively buy and are taking a wait-and-see approach as consumer spending and the job situation haven't really recovered."
(source: reuters.com).

Forex/Currencies:

For a second consecutive day, pound was again seen under pressure against the dollar as the political uncertainity is continuing in the prospect of a hung parliament.  Audrey Childe-Freeman, currency strategist at Brown Brothers Harriman said: "The scale of pound's move yesterday was so big that we may see a pause now, but the downward momentum is still intact and investors remain inclined to sell into any rallies.  Underlying sentiment is bearish due to the same themes - uncertain politics, poor economic performance, an uncertain monetary policy outlook and concern about debt. It's hard to see anything positive for the pound at the moment."
(source: reuters.com).

The pound traded at $1.4920  down 0.5 percent.
(source: reuters.com).

Commodities:

Oil Trading:

Tuesday saw oil closing on a higher note as there were signs of progress in securing European financial backing for Greece and this lifted the economic optimism.  John Kilduff, partner at Round Earth Capital in New York said:  "Oil is going to remain volatile and subject to currency influences as the crisis focus meanders between the euro zone and in the UK there is enough positive economic data out there to keep prices near the $80 level."
(source: reuters.com).

US light crude for April delivery rose 98 cents to end the session in New York at $79.68 a barrel.
(source: sharecast.com).

Gold Trading:

Gold recovered on a strong note in dollar terms and against the pound and euro following uncertainity about Greece's debt.  Frank McGhee, head precious metals trader at Chicago-based Integrated Brokerage Services said:  "Currency volatility is by far the biggest factor supporting gold on Tuesday."
(source: reuters.com).

The April contract settled up $19.10 to $1,137.40 an ounce in New York.
(source: sharecast.com).

Bonds:

(Yields move inversely to bond prices)

US Bonds:

Yet again Treasury yields were seen at the low level as traders reduced their bets on anticipation that the Federal Reserve would increase borrowing costs, while the unemployment rate is little high. Kei Katayama, leader of the foreign fixed-income group in Tokyo at Daiwa SB Investments Ltd. said:  "Investors are more risk averse. They’ll favor US Bonds. Sovereign risk will be the big topic this month.
(source: bloomberg.com).

Ten-year yield was at 3.62%, one basis point up.
(source: bloomberg.com).

European Bonds: