GOOD MORNING ALL TRADERS! Thanks pjsimon, Highland,..HERE'S...

GOOD MORNING ALL TRADERS! Thanks pjsimon, Highland,..

HERE'S OVERNIGHT MARKET UPDATE:
• US bond yields declined overnight spurred by increased demand for US safe haven assets after Fitch downgraded the credit rating of Greece and on growing concerns about Nakheel’s debt renegotiations in Dubai. The 2-year yield decreased 3bps to 0.726%, whilst the 10-year yield lost 4bps to 3.392%.

• Australian bond futures moved in line with US Treasuries although marginally outperforming at both the short and long end of the curve. The implied yield on 3-year bond futures was down 5bps to 4.800% (price up 4bps to 95.200) and the implied yield on the 10-year bond futures was down 7bps to 5.430% (price up 7bps to 94.570).

• US equities were lower overnight as a markdown in Greece’s debt rating and a $3.65bn loss by Dubai’s Nakheel added to speculation that global credit markets are struggling to recover with a decline in energy and raw-materials stocks also weighing on markets. At the time of writing, the DJIA was down 1.1% to 10274, the S&P 500 fell 1.0% to 1092 and the Nasdaq was 0.7% lower at 2175.

• European equities declined after German industrial production fell and UK industrial production stalled unexpectedly. The DJ Euro Stoxx 50 is down 1.6% to 2849, the German DAX decreased 1.7% to 5689 and the FTSE was 1.6% lower at 5223.

• The Australian SPI 200 Dec 09 futures contract was down 53 points or 1.1% to 4616.

• It was a strong night for the USD after Greece’s credit rating was downgraded by Fitch, prompting investors to move away from higher yielding assets. EUR/USD is trading at a 6-week low opening today’s session weaker at 1.4697. GBP/USD opens at 1.6278 after dipping sharply overnight. USD/JPY was trading weak overnight on the back of US stocks retreating opening this morning at 88.34.

• It was a mixed session fir the AUD overnight on the back of the RBA’s Governor Glenn Stevens speech stating that regulating banks when borrowing costs are low is unlikely to work. AUD/USD initially traded strongly but quickly pared gains to open weaker at 0.9045. AUD/EUR had a quiet session overnight and opens at 0.6155. AUD/JPY opens lower at 79.91 after declining steadily overnight and the AUD/NZD opens at 1.2776 after a choppy session.

• Crude oil continued its losing streak as the US dollar strengthened and on forecasts of higher US inventories. WTI futures contract for January fell 1.7% to US$72.71 a barrel.

• Spot gold declined as the US dollar rebounded, eroding the appeal of the metal as an alternative investment. Spot gold decreased 2.3% to US$1,131.40 an ounce.

• LME copper December futures dropped 0.3% to US$6,976 a tonne after German factory production declined and the US dollar strengthened. Other base metal futures traded positive with zinc, aluminium, nickel and lead increasing 0.9%, 0.2%, 0.9% and 0.6% respectively.

• US corn rose 0.3% on expectations that snow and high winds may damage the crops that are to be harvested. Wheat declined 1.3% as the strengthening US dollar reduced export. Soybeans lost 0.8% on speculation that China may shift to supplies from South America. Sugar declined 1.0% while palm oil futures gained 0.2%.

Please also note that the prices / rates have been updated at 0645 AEST.

Good Luck to All Traders Today!