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.


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