daytrade diaries... january 21, page-4

GOOD MORNING ALL!..

HERE'S AN OVERNIGHT MARKET UPDATE:

> The Australian SPI 200 Mar 10 futures contract was down 42 points or 0.9% to 4795.

> While the US equities slid overnight following disappointing results from IBM and Morgan Stanley, with Chinas move to curb bank lending also weighing on equities.. At the time of writing, the DJIA was down 1.3% to 10587, the S&P 500 fell 1.2% to 1136 and the Nasdaq was 1.5% lower at 2285.

> Also the US bond yields were lower overnight as disappointing US corporate earnings and Chinas move to limit bank lending increased the safe-haven appeal of the US Treasuries. The yield on 2-year notes lost 2bps to 0.870%, whilst the 10-year yield fell 4bps to 3.653%.

> Back at the Australian bond futures moved in line with US Treasuries, yet underperformed both the short and long end of the curves. The implied yield on 3-year bond futures was down 5bps to 5.070% (price up 5bps to 94.930) and the implied yield on the 10-year bond futures lost 6bps to 5.540% (price up 6bps to 94.460).

> Back to the European equities declined sharply overnight after Chinas move to rein in lending and concerns over Greeces fiscal situation weighed on markets. The DJ Euro Stoxx 50 fell 2.4% to 2915, the German DAX lost 2.1% to 5852 and the FTSE was 1.7% lower at 5421.

> The USD strengthened against most of its major counterparts as global stocks slid on disappointing corporate earnings and China moved to limit bank lending, reducing demand for higher-yielding assets. EUR/USD dipped below its 5-month low of 1.4082 and opens marginally higher at 1.4102. GBP/USD starts the day weaker at 1.6287 after a choppy session with the USD/JPY gaining steadily overnight and opening stronger at 91.24.

> The AUD weakened against its major currency pairs overnight on concerns that Chinas move to curb lending would dampen demand for higher-yielding assets. AUD/USD declined steadily overnight and opens todays session weaker at 0.9079. AUD/EUR opens marginally lower at 0.6437, relatively unchanged from Wednesday close. AUD/JPY declined in choppy trade overnight and opens lower at 82.83 and the AUD/NZD opens marginally lower at 1.2623 after a whippy session.

> While US sugar gained 0.4% on speculation that India, Pakistan and other importers would purchase more of the commodity as a supply deficit looms. Soybeans declined 1.7% as the rising US dollar reduced investment demand for commodities, while corn rose 0.1%. Wheat fell 0.5% on signs of slack demand for supplies from the US and rising global stockpiles. Palm oil futures were 1.7% lower.

> And Crude oil had its biggest monthly drop as a stronger US dollar reduced the appeal of commodities. WTI futures contract for January fell 1.8% to US$77.62 a barrel.

> While Spot gold slipped overnight as the US dollar strengthened, reducing the appeal of the precious metal as an alternative asset. Spot gold declined 2.1% to US$1,113.87 an ounce.

> And the LME copper decreased 2.3% to US$7375 on speculation that Chinese economic growth might slow down after their government moved to restrict lending. Other base metal futures traded negative with zinc, aluminium, lead and nickel decreasing 2.4%, 1.2%, 5.4% and 2.2%, respectively.

...WILL BE WATCHING ADO, PRR AND VLA TODAY!

GOOD LUCK TO ALL TRADERS!