Pivotfarm Daily News Harvest August 23rd 2010

Markets in a Flash

·        
As an appetite for risk has
appeared in Europe on this Monday morning
investors have been selling the safety of the greenback and making it look weak
today.

·        
Prior to the open of the US equity
markets the equity futures markets are higher this suggests that the European
uptrend will be followed at the opening bell.

·        
Oil and Gold are moving higher
today. Oil is just below $74.50.

·        
Asian markets finished lower
across the board last night. The Main Japanese and Chinese indices were down.

·        
European equity markets are
higher this morning. The Stoxx 50 is higher by nearly 1%.

News Focus

0830ET – Chicago Fed National Activity Index

Previous              -0.63            Actual                   0

The Chicago Fed
National Activity Index is a monthly index designed to gauge overall economic
activity and inflationary pressure. A positive index reading corresponds to
growth above trend and a negative index reading corresponds to growth below
trend.

Potash talks with other possible bidders

It was confirmed
today that Potash, the world’s largest fertilizer producer is in talks with a
number of third parties. Third party talks are underway to discuss the
possibility of a bid to counter BHP Billiton’s $39Bn hostile takeover. The
Chinese state owned chemical company, Sinochem, is a possible contender to BHP
Billiton. The Chinese company last week confirmed it was keeping a close eye on
developments.

News Coming Up

1000ET
– EUR Consumer Confidence

Previous               -14         Consensus
                         -13

Any figure that comes in above consensus
will suggest stronger economic growth and should prove bullish in the markets.