MORNING ALL - WILL BE WATCHING: ANP, BCC, CXS, VIL, VLA...

MORNING ALL - WILL BE WATCHING: ANP, BCC, CXS, VIL, VLA TODAY,
HERE'S AN OVERNIGHT MARKETS UPDATE:
> The Australian SPI 200 Mar 10 futures contract was virtually unchanged at 4904.

> Australian bond futures were broadly weaker in overnight activity following on from comments yesterday from the RBA Assistant Governor Lowe that rates were set to rise further. The implied yield on 3-year bond futures was up 3bps to 5.440% (price down 3bps to 94.560) and the implied yield on the 10-year bond futures gained 4bps to 5.820% (price down 4bps to 94.180).

> US bond yields were mixed overnight after the US Treasuries sold $32bn of 7-year bonds, the last of the three bond auction for this week, at a yield of 3.374%, the lowest demand in 10 months. The increase in bond yields was limited by Bernanke?s comments that the US economy still needs low interest rates. The yield on 2-year notes decreased 1bps to 1.079%, whilst the 10-year yield gained 3bps to 3.882%, the highest closing level since last June.

> US equities ended lower as a retreat in energy and mining companies offset better-than-expected US unemployment data, earnings at Qualcomm and Best Buy. The DJIA was up 0.1% to 10841, the S&P 500 declined 0.2% to 1166 and the Nasdaq was flat at 2397.

> European equities advanced after German Chancellor Angela Merkel backed a Greek rescue proposal, UK retail sales rebounded and earnings at Hochtief and Next topped analysts? estimates. The DJ Euro Stoxx 50 gained 1.5% to 2948, the German DAX rose 1.6% to 6133 and the FTSE was 0.9% higher at 5728.

> The USD strengthened against most currency pairs on Bernanke?s comments that interest rates have to be kept low for an extended period. EUR/USD weakened on the back of Trichet?s comments criticing a potential IMF intervention in Greece, the cross later parring losses to trade around 1.3280. GBP/USD traded strong earlier in the night on better then expected UK retail sales numbers, shedding its gains late in the session to open lower at 1.4815. USD/JPY opens higher at 92.70 gaining steadily throughout the session.

> It was a mixed session for the AUD. AUD/USD initially traded higher but felll almost 0.70% late in the session to open Friday?s trade at 0.9070. AUD/EUR trades higher at 0.6830 after a relatively flat night. AUD/JPY briefly traded above 84.60 and opens marginally lower around 84.10 and the AUD/NZD pair opens at 1.2890 after weakening late in the night.

> Crude oil declined as US equity markets retreated paring earlier gains. WTI futures contract for May 10 fell 0.4% to US$80.25 a barrel.

> Spot gold increased as a weakening USD increased the appeal of the precious metal as an alternative investment. Spot gold rose 0.3% to US$1090.40 an ounce.

> LME copper rose 0.9% to US$7,435 as copper inventories on the LME declined. The increase in demand for the metal was also influenced by the weakening USD. Other base metals traded positive with zinc, lead and nickel increasing 1.5%, 2.5%, and 2.6%, respectively. Aluminium declined 0.1%.

> US soybeans decreased 1.8% on speculation that rising production in South America would erode export demand for the crops produced in the US. Corn fell 2.7% on speculation that warmer weather in the US would boost crop output. Sugar declined 3.5% on concerns that higher production in Brazil would ease supply deficit. Wheat declined 2.0%, its five-month low, on expectation that dry weather would help plantation emerge from winter dormancy. Palm oil futures were 0.6% higher.

GOOD LUCK TO ALL TRADERS AND HAVE A GREAT WEEKEND!