Pivotfarm Daily News Harvest 17th August 2010

Markets in a Flash

·        
The EUR is starting to push
higher this morning and is gaining against the USD, JPY and GBP.

·        
US equity futures are higher
this morning following the European advance and indicating a rise in equity
prices at the bell.

·        
Oil is trading over +1% higher
this morning and is above $76.00. Gold is continuing to rise slowly and is at
around $1230.00.

·        
Asian markets finished mixed
overnight. Chinese markets rose while Japanese markets fell.

·        
European equity markets are up
in their morning trading regaining some of the past few days losses.

News Focus

Home Depot Beats Estimates

The US’s largest
home improvement store, Home Depot Inc, has reported figures that are better
than analysts had expected. The Company reported earnings per share of 72 cents
compared with analysts’ expectations of 71 cents, this has been boosted by an
increase in sales revenue generated by its well established stores. This better
that expected performance may suggest that consumers are spending more on the
housing market and may be a sign of an increase in health in the property
market.

Potash Corp Rejects Bid

Potash Corp, the
world largest fertilizer producer has rejected a takeover bid made by BHP
Billiton. The unsolicited bid of $39Bn was turn down by the company as
management saw it as undervaluing the company. Investors are speculating that
BHP Billiton may return with a higher bid.

0830ET
– Housing Starts

Starts - Level –
SAAR

Previous                              0.549 M                     Consensus          0.565 M

Consensus Range            0.550 M to 0.585 M          Actual                   0.546 M

This figure of 0.546M has come in less that
consensus. It is also slightly less that the figure reported for last month.

0830ET
– Producer Price Index

PPI - M/M change

Previous                              -0.5 %                       Consensus          0.2 %

Consensus Range            -0.2 % to 0.5 %                   Actual                   0.2 %

The figure has
been reported as 0.2% which is what was expected by the market. This shows that
in July there has been a slight rise in producers prices. This should not have
much of an effect on the markets as the expected figure will have already been
priced in.

Coming up Today

0855ET – Redbook                          

This weekly
indicator is similar to the ICSC-Goldman Store Sales as it shows the health of
retail sales but is less consistent.

0915ET – Industrial
production

Production - M/M
change

Previous                              0.1 %                            Consensus          0.6 %

Consensus Range            0.3 % to 1.0 %

This month’s
figure is expected to show that industrial production rose in July after the
previous month’s growth of 0.1 %. The trend for the past year has been of
positive monthly growth figures. A further expansion will continue the growth
trend. A higher that 0.6% figure will prove bullish for the markets as it will
suggest the economy is in better health that expected.

Comments

[goldfish1]

Oil is trading over +1% higher this morning and is above $86.00.

Lead in headline needs correction.