GOOD MORNING TO ALL TRADERS, THX PJ, HLL.. HERE'S AN OVERNIGHT MARKET UPDATE
> The Australian SPI 200 Mar 10 futures contract was down 116 points or 2.5% to 4476.
> The European equities plunged overnight on concerns that Portugal, Spain and Greece would have difficulty curbing their budget deficits and as US jobless claims increased unexpectedly. The DJ Euro Stoxx 50 fell 3.5% to 2707, the German DAX lost 2.4% to 5533 and the FTSE was 2.2% lower at 5139.
> We see the US equities declined on disappointing earnings, an unexpected increase in jobless claims and growing concerns that Greece, Spain and Portugal would struggle to curb their budget deficits. At the time of writing, the DJIA was down 2.0% to 10067, the S&P 500 lost 2.4% to 1072 and the Nasdaq was 2.3% lower at 2141.
> And the US bond yields fell sharply overnight as US initial jobless claims rose unexpectedly and productivity increased less than forecast. Global stocks also declined on concerns some European countries might face difficulty financing budget deficits, increasing the appeal of safe haven assets. The yield on 2-year notes dipped 7bps to 0.804%, whilst the 10-year yield fell 10bps to 3.606%.
> Also the Australian bond futures moved in line with US Treasuries. The implied yield on 3-year bond futures was down 7bps to 4.740% (price up 7bps to 95.260) and the implied yield on the 10-year bond futures lost 8bps to 5.440% (price up 8bps to 94.560).
> Meanwhile spot gold dipped sharply overnight as the US dollars rally eroded the appeal of the precious metal as an alternative investment. Spot gold declined 4.2% to US$1,063.7 an ounce.
> And the good news is the USD strengthened against its major counterparts overnight. EUR/USD trades at an 8-month low on concerns that some European nations would not be able to reduce budget deficits, opening todays session below at 1.3750. GBP/USD opens lower at 1.5766 weakening overnight on reports that the BoE may be open to more asset purchases to safeguard the economy. USD/JPY trades at 89.09 after a choppy session.
> And the not so good news the AUD weakened against major crosses overnight after the recent economic data releases reduced investor appetite for higher yielding riskier assets. AUD/USD dipped to a low of 0.8607 overnight, later paring back some losses to open around 0.8660. AUD/EUR opens lower around 0.6300 declining marginally overnight. AUD/JPY initially traded flat in the overnight session but later fell sharply to open weaker at 77.20. AUD/NZD opens at 1.2566 after a whippy session.
> Meanwhile the US Sugar also declined to 3.3% as the US dollar strengthened, diminishing the appeal of commodities as an alternative investment. Corn and soybeans gained 0.8% and 0.6%, while wheat was up 1.6%. Palm oil futures were 0.5% higher.
> And worst also, Crude oil declined the most in six months as the US dollar gained ground overnight. WTI futures contract for Mar 10 lost 4.9% to US$73.17 a barrel.
> Finally, the LME copper decreased 3.0% to US$6390 as the US dollar strengthened and initial jobless claims rose more than forecast, sharpening demand concerns. Other base metal futures traded negative with zinc, aluminium, lead and nickel decreasing 3.4%, 1.9%, 2.8% and 3.4%, respectively.
I WILL BE WATCHING CLOSELY FOR THIS MORNING DIP AND JUMP IN WHEN OPP. ARISE
