daytrades feb 18 morning ...

Happy Mufti Day Traders,

US Market Report:

U.S. stocks ended at fresh multi-year highs Thursday, as investors focused on an upbeat manufacturing report and looked past indications that inflation is heating up. All three of the major indexes finished the session at their highest levels in more than two years for a second day Thursday.

Investors have been in a bullish mood so far this year, as the outlook for the U.S. economy improves. While inflationary concerns are now creeping into the picture -- with key readings on inflation this week showing that prices are rising more than expected -- investors remain assured that the Federal Reserve remains willing to step in if conditions deteriorate.

"Inflation has been the story du jour lately, and there's definitely a concern about the rising cost of commodities and how that's going to affect the margins of companies," said Tyler Vernon, CIO of Biltmore Capital.

"But at the same time, the Fed continues to be focused on the stock market and supporting the market. So at this point any news is good news, because investors are just thinking the Fed will step back in if things start slowing down," he added. [Source: cnnmoney.com]

Market Reflections - Thursday, 17th February, 2011

Core inflation is a becoming a little less tame, the result of high energy costs bubbling through the pipeline. Food costs are also on the rise, a reminder of its effect on developing economies including those in the Middle East where unrest is spreading. Manufacturers in the Philadelphia area report strong and accelerating business activity and also accelerating input costs. Importantly, they report getting higher prices for the goods they sale. But in a big offset to news of growth and inflation, weekly jobless claims rose sizably and point to yet another disappointing monthly employment report.

The Dow rose slightly in the session to end at 12,318. Oil moved slightly higher to the $86 area while gold moved slightly higher to the $1,385 area, both boosted by uncertainty in the Middle East. Demand for Treasuries is also getting a boost with the 10-year yield down five basis points to 3.57 percent. Lower rates aren't a boost for the dollar where the dollar index fell slightly to 78.00. [Source: bloomberg.com]

Market Focus in the US this evening

Watch for events in the Middle East to set direction. [Source: bloomberg.com]
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The DJIA Index finished the last trading session: Up 29.97 points; and
The SPI Futures are currently: Up 11 points atm.
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Of note in the US this evening:

Ben Bernanke speaks [ Market moving indicator]
[Federal Reserve Chairman - Speech on global imbalances and financial stability at Banque de France Financial Stability Review in Paris.]

Of note in Australia today:

Please note there is no noteworthy 'Economic news' due to be reported in Australia today.

...AND...

Other points of note:

G20 Meeting [Merits extra attention]
[The G20 (Group of Twenty Finance Ministers and Central Bank Governors) meeting is the meeting of the seven industrialized nations (G7),the European Union, and the emerging economies. The meeting takes place to discuss international economic and financial issues. Traders should pay close attention to this event as it might bring a new dimension to the markets.]

... and will China raise interest rates again this weekend to help fight high inflation???

[Sources used: bloomberg.com; dailyfx.com; fxstreet.com; nasdaq.com]
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Gold is currently trading Up $9.00 & is sitting at US$1,384.60/oz atm [Source: Kitco]
Oil is currently trading Up $1.37 & is sitting at US$86.36/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $1.0113c against the US Dollar [Source: Forex. Live]
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Have a great day trading today all.

Cheers, Tweets

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