Pivotfarm Daily News Harvest 16th August 2010

Markets in a Flash

·        
The USD is looking weak this
morning as China see’s
problems with US
recovery.

·        
The JPY has started to look
slightly stronger in the past few hours and is gaining against the USD and the
EUR.

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

·        
Oil is trading just below the
$86.00 mark while Gold is pushing higher to around $1225.00.

·        
Chinese markets were up
overnight while Japanese markets fell as investors sold.

·        
European equity markets started
the day positive but have turned negative as trading has continued.

News focus

China set to be world’s second
largest economy

GDP data from Japan showed
that their economy grew by an annualized rate of only 0.4% in the second
quarter of this year. Economists had expected the data released to show a
figure of 2.3%. In the second quarter of this year Chinas Gross Domestic
Product was 3.8% high than Japans. As China
continues to grow rapidly throughout this year it is expected that by the year
end China
will be official the second largest economy. 
The news that the Japanese economy has not grown at the rate it was
expected too has sent bearish forces through the markets today. Equity markets
are lower as investors think the world’s recovery is going to be hindered by a
double dip.

Just Released

0830ET – Empire State
Mfg Survey

General Business
Conditions Index

Previous                              -0.1%                                     Consensus          8.0

Consensus Range            6.5 TO 10.0                          Actual                   7.10

The New York Fed
conducts this monthly survey of manufacturers in New York State.
Participants from across the state represent a variety of industries. On the
first of each month, the same pool of roughly 175 manufacturing executives
(usually the CEO or the president) is sent a questionnaire to report the change
in an assortment of indicators from the previous month. Respondents also give
their views about the likely direction of these same indicators six months
ahead.

09:00ET – Treasury International
Capital

Previous              $35.4
B                                                  Actual
                  $44.4 B

These Treasury data
track the flows of financial instruments into and out of the United States.
Instruments tracked include Treasury securities, agency securities, corporate
bonds, and corporate equities.

Coming up Today

10:00ET – Housing Market
Index

Previous              14                                                           Forecast               15

The National
Association of Home Builders produces a housing market index based on a survey
in which respondents from this organization are asked to rate the general
economy and housing market conditions. The housing market index is a weighted
average of separate diffusion indexes: present sales of new homes, sale of new
homes expected in the next six months, and traffic of prospective buyers in new
homes.

Comments

[geno-econ]

Obvious typo on trading price of oil---should be $76.  If it were $86, gold would be $1425