Trading News and Views: 02 September 2010 Indices: European markets:Equities in Europe like the FTSE , CAC and DAX s aw a bright day yet for another day as manufacturing data was strong from the United States and China, the world's two biggest economies. Miners were the standout gainers in Europe yesterday as the price of the copper and other metals gained in a better outlook. (source: reuters.com).
Heino Ruland, strategist at Ruland Research in Frankfurt said: "The main reason is the data from China, and that was needed, because China is one of the few pockets of strength left. Equities are not expensive, so any sign of a resumption of stronger growth, and people will look at purchasing equities as opposed to bonds."
(source: reuters.com) FTSE, DAX & CAC ended the day between 2.7 and 3.8 percent higher.
(source: reuters.com).
US markets:Tuesday US stocks like Dow Jones, NASDAQ & S&P 500 were little changed as wednesday as investor mood brightened after better-than-expected factory data from the United States and China. (source: reuters.com). Randy Frederick, director of trading and derivatives at the Schwab Center for Financial Research in Austin said: "This is typical of a big strong day like today. When markets go up, people put on hedges as they fear that they might see a pullback tomorrow." (source: reuters.com). Asian markets: Drawing support from a halt in the rapid advance in the yen on a manufacturing rebound in China and stronger-than-expected growth in Australia, took the stocks in Asia like the Japanese Nikkei to close on a bright note.
(source: reuters.com) Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities said: "Investors welcomed growing signs of a halt in the advance in the yen against the dollar, stemming from yen crosses after Australian growth data showed improvement and China's data came in strong."
(source: reuters.com).
The Japanese Nikkei ended up the day 102.96 points at 8,927.02.
(source: reuters.com).
The US dollar fell against major currencies when positive data around the world soothed worries about the health of the global economy. The euro was seen gaining ground as European shares rose at their fastest pace after fears eased over a renewed global slowdown, another supportive factor for oil prices.
(source: reuters.com) Brendan McGrath, manager of business solutions at Custom House, a Western Union company said: "What we've seen is a bit move away from the US dollar. Risk is back in favor a little bit today, mainly due to the good Australian and Chinese data."
(source: reuters.com) Against the yen, the dollar rose 0.3 percent to 84.41 yen. The euro rose 0.9 percent to $1.2800.
(source: reuters.com)
Commodities:
Oil Trading:The oil market started off on a bright note as manufacturing data was strong from China and the United States revived risk appetite and eased worries about flagging energy demand.
(source: reuters.com). Mark Waggoner, president at Excel Futures in Bend, Oregon said: "The EIA's crude stock build is bearish but the market is ignoring it because earlier today, it found support from data showing new signs of growth in China, which means better oil demand going forward."
A barrel of crude oil for October delivery settled down $2.78 at $71.92 a barrel. (source: reuters.com). Gold Trading:
The precious metal gold edged down on a low note as as strong US manufacturing data encouraged investor appetite for riskier assets such as stocks, decreasing bullion's appeal as an alternative investment.
(source: reuters.com). James Steel, chief commodity analyst at HSBC said: "Right now an increase in risk appetite has undermined gold, whose safe-haven appeal has diminished but the market is still well bid. It shows good underlying support for gold as economic uncertainty remains in the background."
(source: reuters.com).
Gold prices for December delivery settled down $2.20 an ounce to $1,248.10.
(source: reuters.com). Bonds: (Yields move inversely to bond prices) US Bonds: US bond treasury market declined as a gauge of US manufacturing unexpectedly increased in August, reducing demand for the relative safety of government debt securities. (source: reuters.com). Thomas Roth, senior Treasury trader at Bank of Tokyo- Mitsubishi UFJ Ltd. in New York said: “We’re priced for a lot of bad things at these levels. When we get data that says maybe we overdid it, the market comes off.”
(source: reuters.com). Ten-year yields are at 2.58%.
(source: reuters.com). German government bonds rose as surging stock markets cut demand for the safety of fixed income.
(source: reuters.com). David Schnautz, a fixed-income strategist at Commerzbank AG in London said: “Economic data from China and Australia appeared to have improved risk appetite that pushed stocks higher and bonds lower, but we also had weak data today which failed to move yields lower. I think the market is just stretched and people are looking for an excuse to sell.” (source: reuters.com). Two-year german bonds were at 2.23%. (source: reuters.com).
Economic Calendar 02 September 2010: 05:45 am Gross domestic Product (YoY)(Q2) : Switzerland The Gross Domestic Product, released by the State Secretariat for Economic Affairs SECO, is a measure of the total value of all goods and services produced by Switzerland. The GDP is considered as a broad measure of Swiss economic activity and health. A rising trend has a positive effect on the CHF, while a falling trend is seen as negative ( or bearish ) for the CHF. Previous Rate: 2.3% Consensus Rate:2.6% (High Volatility) Recent Market Action: | | Instrument | Price Change | Indicator | | INDICES | DOW | 2.54% |  UP
| | | NASDAQ | 2.97% | UP | | | S&P | 2.95% | UP | | | FTSE | 0.89% | UP | | | CAC | 0.08% | UP | | | ESTOXX | 0.08% |  DOWN
| | | DAX | 0.05% | DOWN | | | HSI | 1.19% | UP | | | NIKKEI | 1.52% | UP | | CURRENCIES | EURO | 0.1247% | UP | | | YEN | 0.3138% | DOWN | | | GBP | 0.3599% | DOWN | | COMMODITIES | GOLD | 0.01% | DOWN | | | OIL | 0.86% | DOWN | | BONDS | BOND 30
| 0.011 yield change
| UP | | | BUND 10
| 0.014 yield change | UP | (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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