Trading News and Views:  09  March 2010

Indices:

European markets:

Monday started on a weak note for european markets like DAX as chemical companies turned out to be weaker and drugmakers were also down. David Morrison, market strategist at GFT Global said:  "We seem to have climbed a wall of worry and we've got a bit of a return to risk appetite. We're not that bothered about the problems in Greece anymore and ... non-farm payrolls (US jobs data) was seen as good."
(source: reuters.com).

France’s CAC 40 fell 0.2 percent and the UK’s FTSE 100 gained 0.1 percent. Germany’s DAX ended up flat.
(source: reuters.com).

US markets:

Monday saw a good day for US stocks especially Nasdaq as technology shares like Cisco systems and Research in Motion ended up on higher note. Cort Gwon, director of research and trading strategies at FBN Securities in New York said: "Cisco coverage was started (at JPMorgan) and RIM got an upgrade saying their earnings and outlook look pretty strong, and that helped tech shares today."    
(source: reuters.com).

Dow Jones  dropped 0.13 percent, to end at 10,552.52.  The S&P 500 index dropped 0.02 percent to 1,138.50. The Nasdaq Composite Index rose 0.25 percent, to 2,332.21.
(source:reuters.com).

Asian markets:  

Asian stocks like Nikkei rose as exporters ended up higher on a weaker yen and resource shares were up. Hiroaki Osakabe, a fund manager at Chibagin Asset Management said: "It's really almost more about the currencies now, especially with the dollar up over 90 yen.But we may start seeing a bit of profit-taking -- after all, the Nikkei has risen over 400 points in just two trading days." 
(source:reuters.com).

Japan’s Nikkei 225 Stock Average increased 2.1 percent.
(source:reuters.com).

Forex / Currencies:

The euro rose on monday against the dollar as there were concerns about the Greece's fiscal crisis improved when French president Nicolas Sarkozy said there are plans to support the debt-strapped country, if necessary.   Dean Popplewell, chief currency strategist, at OANDA in Toronto said: "Sarkozy giving a thumbs up to the euro and an EU backing for Greece gave us a better bid tone before we started the market this morning. But with the lack of North American data especially after last Friday's surprising US employment report, the market is sitting back and digesting the comments out of Europe especially from Papandreou."
(source: bloomberg.com).

The dollar was flat against the yen at 90.27 yen. The euro was also little changed against the Japanese currency at 123.04 yen.
(source: bloomberg.com).

Commodities:

Oil Trading:

Economic optimism balanced the stronger dollar and this took the Oil to end up on a higher note on monday.  Dan Flynn, analyst at PFGBest Research in Chicago said:  "People are doing back flips over the jobs numbers. They were nice but we're still losing jobs so I'm a bit cautious on my euphoria."
(source: bloomberg.com).

US crude for April gained37 cents to settle at $81.87.
(source: reuters.com).

Gold Trading:

Gold saw a bad day on monday as it fell on technical selling and liquidation by investors to reduce currency volatility from the Greek debt crisis.  Zachary Oxman, managing director at California-based TrendMax Futures said:  "There is profit taking after the sharp increase over the past few weeks in gold, and a bit of unwinding of the excessive fear trade linked to Greece and Europe."
(source: reuters.com).

US gold futures for April delivery on the COMEX division of the NYMEX settled udown $11.20 at $1,124 an ounce.
(source: reuters.com).
 

Bonds:

(Yields move inversely to bond prices)

US Bonds:

Treasuries ended on a bad note as Ten-year yields fell as shares in asia rose on signs that the world economy is improving.  Masaaki Sugihara, head of foreign debt in Tokyo at Toyota Asset said: “Treasury yields will rise. The US economy is improving, and that will continue. Ten-year yields will advance to 4 percent in the second half of 2010”  
(source: bloomberg.com).

European Bonds:

German Government bonds ended on a positive side on monday as Greece's 10-year bond rose on optimisim that the international support would help avert a greek debt crisis damping demand for the safest assets. Peter Schaffrik, fixed-income strategist at Commerzbank AG in London said:  “The buzz word of the day was ‘EMF’ and the mere idea that has been floated around helped support spread products. The front end of the euro zone periphery is too cheap, and we recommend buying into weakness. As regards bunds, though, we believe in the opposite scenario: sell into strength.”
(source: bloomberg.com).