daytrades jan 21 morning ...

Happy Mufti Day Traders,

DOW Snapshot from the previous trading session:

" U.S. stocks gained back some ground Thursday afternoon, with blue chips moving higher and technology shares lagging the broader market, as investors shook off concerns about the consequences of China's robust growth. Stocks opened lower after a stronger-than-expected reading on economic growth in China raised fears about what steps the government might take to slow activity. But investors tip-toed back into the market later in the day as those concerns eased.

"China is a very important part of the recovery and expansion of global GDP," said Paul Zemksy, head of asset allocation at ING Investment Management. "Until we see signs of moderation in their growth and a slowdown in inflation, I think the market is going to be a bit jittery about that." " [Source: cnnmoney.com]

Market Reflections - Thursday, 20th January, 2011

"Roughly 10 percent growth in China points to rising interest rates ahead as Chinese policy makers raise rates to cool borrowing demand. Interest rates here jumped on the day, up 10 basis points on the 10-year Treasury to 3.44 percent.

U.S. growth is in the low to mid single digit range, not yet enough to raise inflation concern here. Yet inflation for food and especially energy has been on the rise and today�s Philly Fed survey shows a rare jump in output prices in what is a hint that manufacturers are making 2011 price hikes stick. The day�s other data also point to economic strength as jobless claims fell, existing home sales improved, and the index of leading economic indicators posted a second straight big gain, this one led by a rise in housing permits.

The rise in rates is likely to lower investment demand for precious metals which of course, unlike bonds, don�t pay interest. Gold broke significantly lower on the session, down $25 to $1,345 with silver down $1.25 just over $27.50. The Dow was little changed though technology stocks posted sizable declines after telecom equipment maker F5 missed estimates due to weak government business." [Source: bloomberg.com]

Market Focus in the US this evening

"The U.S. calendar is empty and the international calendar is light, pointing to a quiet day for the markets." [Source: bloomberg.com]

The DJIA Index last finished the last trading session Down 2.49 points; and
The SPI Futures are currently: Down 12 points atm.

Of note in the US this evening:

Please note there is no noteworthy 'Economic news' due to be reported in the US this evening;

...AND...

Of note in Australia today:

Import Price Index (QoQ) (Q4)
[Import Price Index informs the changes in the price of imported products. It''s released by the Australian Bureau of Statistics. The higher the cost of imported goods, the stronger the effect they will have on inflation, redunding in a higher probability of a rate rise. Therefore, a high reading should be taken as positive, or bullish, for the AUD.]

Export Price Index (QoQ) (Q4)
[Export Price Index informs of the changes in the price of exports. It's released by the Australian Bureau of Statistics. Agricultural products and minerals cover over the 60% of manufacturing exports. Thus, the changes in commodity prices affect the Australian economy. Low volatility for the AUD is expected. A rise in prices is a threat over the mid-term as higher prices mean lower demands to be expected.]

RBA Foreign Exchange Transaction (Dec)
[The Foreign Exchange Transactionreleased by the Reserve Bank of Australia shows the movements of the exchange of the AUD for others, likewise others for the AUD. It indicates the climate of foreign investors into the AUD itself. This event causes volatility in the AUD. Generally, an increasing number of investments is seen as positive prospect of the Australian economy (or bullish sentiment for the AUD).]

[Sources used: bloomberg.com; dailyfx.com; fxstreet.com; nasdaq.com]

Gold is currently trading Down $24.90 & is sitting at US$1,345.60/oz atm [Source: Kitco]
Oil is currently trading Down $2.22 & is sitting at US$89.59/bbl atm [Source: Bloomberg]
The Dollar: The AUD is currently trading @ $0.9870c against the US Dollar[Source: Forex. Live]

Have a great day trading today all.

Cheers, Tweets

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