Pivotfarm Daily News Harvest 18th August 2010

Markets in a Flash

·        
The Dollar has started to
weaken in the past few hours against other major currencies. China continues
to shift the world’s largest FX reserves out of Dollars.

·        
The USD/JPY is trading very
close to its lows, further weakness in the USD may see the pair making new
ground.

·        
US equity futures are sitting
around level today, with no clear direction to the direction of equity markets
at 0930ET.

·        
Oil is trading nearly -1.0%
lower in today’s session and is at $75.00. Gold is holding on to its recent
gains at $1225.00.

·        
Asian markets finished mixed
again overnight. In reverse to yesterday Chinese and Hong
Kong markets fell while Japanese markets rose.

·        
European equity markets are
lower this morning as the US
markets fell slightly from the level they were at when Europe
closed yesterday.

News Focus

BHP Billiton makes Hostile Bid for Potash

After Potash
Corp rejected BHP Billiton’s unsolicited bid of $39Bn, the world’s largest
miner has returned with a hostile bid. BHP Billiton has launched a fully funded
cash hostile takeover bid for Potash, the world’s largest fertilizer producer.
Potash’s share price jumped nearly 30% yesterday as BHP’s share price fell a
couple of percent.  The offer of $39Bn is
roughly 20% higher than the company was valued at on the 11^th Aug,
but it is expected that BHP Billiton may have tpo increase its bid if it is
going to be successful.

0700ET – MBA Purchase
Applications

Composite Index
- W/W Change

Previous              0.6 %                     Actual                   13.0 %

The new purchase index for applications
fell -3.4% this week but the composite index was pulled higher by the
refinancing index. The refinancing index jumped 17.1% this week to its highest
level since May 2009.

Coming up Today

1030ET – Petroleum Status
Report

The weekly report by the Energy Information
Administration provides data on US petroleum stocks. A reduction in stocks will
show an increase in the demand for petroleum and may be taken as an indicator
of an increase in spending. A low figure may put bullish pressure on oil prices
and oil companies.

Comments

[kathy.chamberli...]

keep up the good work mr H A R V E S T.