GOOD MORNING TO ALL TRADERS,..HERE'S AN OVERNIGHT MARKET UPDATE>...

GOOD MORNING TO ALL TRADERS,..

HERE'S AN OVERNIGHT MARKET UPDATE

> The US equities were higher after the US manufacturing and income indices increased more than economists estimated. At the time of writing, the DJIA was up 1.1% to 10173, the S&P 500 gained 1.3% to 1086 and the Nasdaq was 1.0% higher at 2168.

> Ans the Australian SPI 200 Mar 10 futures contract was up 37 points or 0.8% to 4546.

> While the US bond yields were higher for the first time in three days after the US Factory Index rose more than forecast and on concerns that President Barack Obamas budget proposal projecting this years deficit would hit a record $1.6tn. The yield on 2-year notes gained 5bps to 0.859%, whilst the 10-year yield rose 6bps to 3.648%.

> The Australian bond futures moved in line with US Treasuries. The implied yield on 3-year bond futures was up 5bps to 4.880% (price down 5bps to 95.120) and the implied yield on the 10-year bond futures gained 5bps to 5.495% (price down 5bps to 94.505).

> The European equities climbed for a second day after US manufacturing expanded more than forecast and takeover speculation of Northumbrian Water Group boosted utilities. The DJ Euro Stoxx 50 gained 0.6% to 2793, the German DAX rose 0.8% to 5654 and the FTSE was 1.1% higher at 5247.

> It was a mixed night for the USD after reports showed that US manufacturing and spending were stronger than economists forecasted, fuelling increased demand for riskier assets. EUR/USD rebounded from its 7-month low overnight and opens stronger at 1.3920. GBP/USD declined overnight after UK house prices decreased and opens above 1.5950. USD/JPY opens higher at 90.69, gaining steadily overnight.

> And the AUD strengthened against major crosses ahead of the RBAs interest rate decision today. AUD/USD dipped to a low of 0.8788 overnight, managing to later par losses to open higher above 0.8900. AUD/EUR opens at 0.6393, gaining marginally overnight. AUD/JPY opens strong at 80.72 trading in a wide range overnight and the AUD/NZD opens marginally lower at 1.2565 after a quiet session overnight.

> While crude oil rose overnight after the US dollar dropped against the euro and US manufacturing increased at the fastest pace since August 2004, signaling increased demand for fuel in US. WTI futures contract for Mar 10 rose 2.1% to US$74.43 a barrel.

> And spot gold rose by its biggest margin in three weeks on speculation that the US dollars rally might stall, boosting demand for the metal as an alternative investment. Spot gold gained 2.4% to US$1,106.50 an ounce.

> The LME copper increased 0.7% to US$6790 after strong US manufacturing data released, increasing speculation that demand for the metal would climb. Other base metal futures traded positive with zinc, aluminium and lead increasing 1.7%, 0.3% and 1.0%, respectively. Nickel ended 2.7% lower.

> The US corn and wheat rose 0.7% and 0.2% as the US dollar fell and US consumer spending increased, boosting demand for food, animal feed and fuel made from US biggest crops. Sugar declined 2.1% on speculation that extra production from the European Union might help alleviate a supply shortfall, while soybeans fell 0.5%. Palm oil futures closed unchanged.

GOOD LUCK TO ALL TRADERS!