Pivotfarm Daily News Harvest 4th August 2010

Markets in a Flash

·        
Overnight Japanese markets
closed lower. This may be as the JPY appreciated investors see exporters
getting hurt. The Nikkei 225 was down -2.11%.

·        
Equity markets in China and Hong Kong
finished higher overnight. The Hang Seng index was up +0.43%, while the Shanghai index was up
+0.44%.

·        
European equity markets are
down today but as trading continues they are starting to regain their losses.
The Stoxx 50 is down less than -0.50%

·        
Commodities are having a mixed
session today. Oil is trading slightly lower but is still above $82. Gold is
gaining and is at the $1200 level.

·        
The JPY is looking strong. The
USD/JPY has continued to push lower today. It is now making new lows and is
trading around 85.500.

·        
The USD/CHF is trading at its 6
month low and is testing resistance on the lower side.

·        
US equity futures are slightly
lower this morning suggesting a slight drop at the open.

News Focus

BP succeeds in blocking leak

BP today said
that it operations to stop the flow from the leak in the Gulf
of Mexico had appeared to have succeeded. The Static Kill
operation that started on Tuesday, pumped mud back down the well into the
reservoir to block the path of the oil escaping. If BP is found liable under
the US’s Clean Water Act they could face fines of over $20Bn. Estimates have
confirmed that the oil spill in the Gulf of Mexico
is the largest of its kind.

Time Warner beats analyst’s estimates

Time Warner
reported earnings of 50cents a share compared with average analysts
expectations of 46cents a share. This comes as the company see’s sales of
advertising in magazine and cable television and movie box office receipts
rise. The company raised its full year earnings forecast, and it is expected
that earnings for 2010 will grow by around 20%.

Just Released

0700ET – MBA Purchase
Applications

Purchase Index -
W/W Change

Previous              2.0 %                     Actual                   1.5 %

This data shows a further rise in the
number of mortgage applications for the US property market. This data shows
that the demand in the housing markets has risen. This is the third week in a
row that the index has risen. This should prove bullish for the markets as it
shows that the housing market may be picking up.

0815ET
- ADP Employment Report

Previous              13,000                   Actual                   42,000

The ADP report
shows employment figures representative of the US private sector. The report can
be an indicator to the non-farm payrolls figure released next month. Today’s
figure representative of June shows a considerable rise in the number over last
month.

Coming up Today

1000ET – ISM
Non-Manufacturing Index

Previous                               53.8                       Consensus          53.0 

Consensus Range            52.8 to 54.0 

The result of 53.8 for June was lower than
the previous three months.  The rising
trend was broken last month as the last time the index had dropped was in
November 2009. Today’s figure is expected to show that the index has fallen
further. A strong figure today with put bullish pressure on the US equity
markets and should bode well for the dollar.

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.