GOOD MORNING ALL!HERE'S AN OVERNIGHT MARKET UPDATE;> The...

GOOD MORNING ALL!

HERE'S AN OVERNIGHT MARKET UPDATE;

> The Australian SPI 200 Mar 10 futures contract was down 80 points or 1.8% to 4721.

> While the US equities tumbled for the second consecutive day as a White House proposal to reduce risk-taking at banks and concerns China might take more steps to moderate economic growth dragged down financial companies and materials producers. At the time of writing, the DJIA was down 1.8% to 10411, the S&P 500 fell 1.6% to 1120 and the Nasdaq was 0.8% lower at 2273.

> While it was a mixed night for the USD as the US jobless claims increased unexpectedly and the US government proposed new regulations to curb trading by banks. EUR/USD weakened to a low of 1.4029 overnight but later rebounded to open higher around 1.4100. GBP/USD weakened after the UK budget deficit widened and opens the morning weaker at 1.6200. USD/JPY opens lower at 90.30 after proposals to curb trading by the banks in the US increased the appeal of safer assets.

> The AUD weakened against major currency pairs overnight on speculation that China might take measures to curb lending after their GDP jumped significantly in the fourth quarter. AUD/USD opens lower at 0.9030, dipping sharply overnight. AUD/EUR opens weaker at 0.6400, declining steadily throughout the session. AUD/JPY fell sharply and opens lower at 8150. AUD/NZD opens higher at 1.2679, relatively unchanged from Thursday close.

> Meanwhile the US bond yields were lower overnight as stocks fell amid concerns that President Barack Obamas regulation plans would reduce risk-taking at banks, increasing the appeal of safe haven assets. The yield on 2-year notes lost 3bps to 0.837%, whilst the 10-year yield fell 4bps to 3.607%.

> And the Australian bond futures moved in line with US Treasuries. 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 5bps to 5.555% (price up 5bps to 94.445).

> Back to European equities continued to decline as US jobless claims increased more than forecast and on speculation that the Obama administration will rein in risk-taking at banks. Increased concerns that China might take further action to curb spending after its GDP jumped 10.7% in the fourth quarter also weighed on the equities. The DJ Euro Stoxx 50 fell 1.8% to 2863, the German DAX lost 1.8% to 5747 and the FTSE was 1.6% lower at 5335.

> Also Crude oil fell to a four-week low after a US Energy Department report showed that refineries slashed operating rates as fuel demand declined. WTI futures contract for Mar 10 fell 2.1% to US$76.13 a barrel.

> And Spot gold weakened overnight as the US dollar fluctuated, eroding the appeal of the precious metal as an alternative asset. Spot gold declined 1.1% to US$1,098.40 an ounce.

> The LME copper decreased 1.3% to US$7280 as a drop in equity markets cooled demand for the commodity. Other base metal futures traded mixed with zinc, aluminium and lead decreasing 1.8%, 1.3% and 1.5%. Nickel increased 0.8%.

> Finally the US sugar rose 0.5% to a 29-year high on higher demand from Asia. Soybeans softened 1.5% and wheat gained 0.5%. Corn rose 0.9% while palm oil futures were 1.8% higher.

...WILL BE WATCHING VLA, PRR, ADO, ROL, TRF, ALD, VIL

GOOD OPPORTUNITY TO JUMP IN LATER TODAY!

GOOD LUCK TO ALL TRADERS!