GOOD MORNING ALL, PJ, HLL,...HERE'S AN OVERNIGHT MARKET UPDATE>...

GOOD MORNING ALL, PJ, HLL,...HERE'S AN OVERNIGHT MARKET UPDATE

> The Australian SPI 200 Mar 10 futures contract was up 52 points or 1.2% to 4526.

> Australian bond futures moved in line with US Treasuries. The implied yield on 3-year bond futures was up 7bps to 4.810% (price down 7bps to 95.190) and the implied yield on the 10-year bond futures gained 7bps to 5.520% (price down 7bps to 94.480).

> US equities were higher overnight as European Union officials discussed the prospects of a Greece bailout to reduce the countries budget deficit. A rally in commodities and mining stocks also supported the markets. At the time of writing, the DJIA was up 1.8% to 10069, the S&P 500 gained 1.4% to 1070 and the Nasdaq was 1.2% higher at 2151.

> US bond yields rose for the first time in four days as the European Union agreed in principle to a bailout proposal for Greece, contingent upon the countrys progress in reducing its budget deficit. The US government sold $40bn of three-year notes at a yield of 1.377%. The yield on 2-year notes rose 6bps to 0.819%, whilst the 10-year yield gained 7bps to 3.631%.

> European equities advanced with talks that the European Union would assist Greece in tackling its budget deficit. The Swatch Group posted better-than-estimated earnings, overshadowing a decline in the earnings of UBS. The DJ Euro Stoxx 50 rose 0.2% to 2668, the German DAX gained 0.2% to 5498 and the FTSE was 0.4% higher at 5112.

> The USD weakened against major crosses overnight. EUR/USD strengthened as reports that the EU is planning to bail out Greece if the country makes progress in reducing its budget deficit came to the market; the cross opens todays session strong at 1.3782. GBP/USD touched a high of 1.5749 overnight, later paring back gains to open marginally lower around 1.5700. USD/JPY opens at 89.63 after a range-bound session.

> The AUD strengthened against major counterparts as risk appetite improved. AUD/USD initially witnessed a quiet session however later gained momentum to open higher at 0.8770. AUD/EUR opens marginally higher around 0.6360 trading sideways overnight. AUD/JPY trades at 78.60 after a choppy session and the AUD/NZD cross starts the day at 1.2630 after whippy session.

> Crude oil rose for a second day as the US dollar weakened against the euro, increasing the appeal of commodities as an alternative investment. WTI futures contract for Mar 10 rose 2.6% to US$73.77 a barrel.

> US corn rose 0.8% after the US Department of Agriculture said demand from ethanol producers would be greater than expected. Sugar rose 1.8% on speculation that a global production shortfall may persist and spur importers to boost stockpiles. Soybeans fell 0.6%, while wheat lost 0.3% and Palm oil futures were 0.4% higher

> Spot gold gained as the weakening US dollar increased demand for the precious metal as an alternative investment. Spot gold gained 1.3% to US$1,076.80 an ounce.

> LME copper increased 2.2% to US$6,590 on heightened speculation that demand would swell in China after auto sales in the country doubled in January. Other base metal futures traded positive with zinc, aluminium, lead and nickel increasing 4.0%, 2.2%, 3.4% and 1.6%, respectively.

GOOD LUCK TO ALL TRADERS!