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 84 points or 1.8% to 4563.

> And the US equities dipped sharply overnight led by a decline in technology shares after Qualcomm lowered its sales forecast and on speculation that a bailout for Greece is being considered. At the time of writing, the DJIA was down 0.9% to 10242, the S&P 500 fell 0.9% to 1098 and the Nasdaq was 1.6% lower at 2217.

> While the US bond yields were mixed overnight as stocks fell and concerns lingered that Greece would not be able to adequately improve its fiscal position, increasing the appeal of short-term US government debt. The US sold $32bn of 7-year notes at a yield of 3.127% and at a bid-to-cover ratio of 2.85. The yield on 2-year notes lost 5bps to 0.867%, whilst the 10-year yield rose 1bps to 3.654%.

> The Australian bond futures were higher across the curve last night. The implied yield on 3-year bond futures was down 6bps to 4.950% (price up 6bps to 95.050) and the implied yield on the 10-year bond futures lost 4bps to 5.500% (price up 4bps to 94.500).

> And the European equities fell for the second consecutive day as basic-resources companies tumbled. AstraZenecas sales forecast disappointed investors, overshadowing better-than-estimated earnings from Nokia and Hennes & Mauritz. The DJ Euro Stoxx 50 declined 1.8% to 2737, the German DAX fell 1.8% to 5540 and the FTSE was 1.4% lower at 5146.

> Meanwhile, It was a positive night for the USD as concerns about Greece and Portugals budget deficit increased the appeal of safer assets. EUR/USD dipped to an overnight low of 1.3946 and opens slightly higher at 1.3974. GBP/USD was initially trading higher but later pared gains to open weaker at 1.6123. USD/JPY opens at 89.89 after a flat session.

> The AUD erased gains overnight against major crosses as Greece and Portugals budget deficit concerns dampened investor appetite for riskier assets. AUD/USD opens around 0.8950, falling from its overnight high of 0.9049. AUD/EUR fell sharply in the latter part of overnight trading to open lower at 0.6400. AUD/JPY declined steadily and starts the days trading around 80.50. AUD/NZD opens marginally higher at 1.2698 after range trading overnight.

> Finally, US wheat and corn rose 0.7% and 1.1% after a US government report showed that export sales of the commodities were at the high end of analysts expectations. Sugar gained 2.3%, while soybeans increased 0.4%. Palm oil futures were 0.9% higher.

> And crude oil prices were subdued on weaker US data, reducing the appeal of commodities as an alternative investment. WTI futures contract for Mar 10 gained 0.1% to US$73.71 a barrel.

> Also the spot gold fell as a rally in the US dollar eroded the appeal of the precious metal as an alternative investment. Spot gold was down 0.1% to US$1,087.10 an ounce.

> And LME copper decreased 4.6% to US$6898 as copper inventories tracked by the LME increased and on concerns that plans by US and China to withdraw stimulus measures would curb demand for the commodity. Other base metal futures traded negative with zinc, aluminium and lead decreasing 3.5%, 3.3% and 3.2%, respectively. Nickel ended 0.9% higher.

GOOD LUCK OT ALL TRADERS!