Pivotfarm Daily News Harvest 12th August 2010

Markets in a Flash

·        
The USD is starting to look
stronger today. Against the JPY it is pulling back some of its losses.

·        
The EUR/JPY appears to be
pushing to new monthly lows today. It is trading around the 110.000 level.

·        
US equity futures are lower today
suggesting the selloff will continue when the markets open.

·        
Oil is falling and Gold is
rising as investors become more risk averse. Wheat prices continue to rise as
supply fears feed the trend.

·        
Asian markets fell over night.
The Nikkei 225 finished down -0.86% while other indices were also lower.

·        
European equity markets are
fluctuating between rises and falls this morning with no direction being
obvious.

News focus

Industrial Output in Europe Falls

Industrial
output data for the Eurozone, released this morning, came in worse than
expected. The monthly change in the figure was forecast to be +0.7% but when
released showed a decline of -0.1%. The figure released today for June shows a
decline, this follows last month’s data for May which showed a rise in
production of 1.1%. This new information may show that the Eurozone economy is
starting to slow its growth rate in line with what appears to be happening
across the Atlantic in the US.

GM Seeks IPO

The automaker,
General Motors Co, primarily owned by the US government is expected to seek
an Initial Public Offering. The IPO is expected to raise somewhere in the
region of $12Bn to $16Bn, this will make it the second largest IPO in US history
behind 2008’s $19.7Bn offering of Visa inc. The S1 document is expected to be
filed with the Securities and Exchange Commission tomorrow or Monday.

Just Released

0830ET
- Jobless Claims

New Claims - Level

Previous                              479 K               Consensus          460 K

Consensus Range            460 K to 470 K        Actual                 484 K

This week’s jobless claims figure came in
worse than consensus and worse than previous. This should be bearish for the
markets and show that the economy is struggling more than thought. This fits in
with the recent trend of employment data being worse than thought. If the
labour market in the US
is not in good health it is a very bad sign for the wider economy.

Coming up Today

1030ET – Natural Gas
Report

The weekly report by the Energy Information
Administration provides data on US natural gas stocks. A report showing a drop
in natural gas stocks may signal increasing demand in the economy and see an
increase in the price of the commodity.

Comments

[rapunzel]

pivot, i like your content. easy summary. thanks

pivot |?piv?t|
noun
the central point, pin, or shaft on which a mechanism turns or oscillates.

plus, F E E T†