GOOD MORNING!


EQUITIES
The US Equities closed down in a volatile session yesterday. The investors are confused between upbeat Corporate earnings and disappointing Economic Data release in the past few days. The markets will closely look at the first reading of the April-June US GDP, scheduled later today. The Dow (10467.16) was down 0.29% and the S&P 500 (1101.53) was down 0.42%. We continue to hold our view of an immediate Resistance on the Dow near 10500-25 region, a break above which may take it towards 10800 in the coming days / weeks.

All Asians are in the Red following the Wall Street today. The Nikkei (9550.18) is down 1.50% even after strong numbers from Sony and Nissan and the Shanghai (2628.81) is down 0.80%. In India, the Markets traded in a narrow range yesterday. The Sensex (17992.00) and the Nifty (5408.90) closed up about 0.20%. The Resistance in 18350-500 region on Sensex may not be broken easily in the coming days.

COMMODITIES
Crude (78.20) has bounced back from yesterday's low of 76.45 and is now trading above 78. The weaker dollar supported the price rise yesterday. While above 78 there are chances of testing the 79.50-80.00 Resistance region once again. On the downside Support is seen at 76.

Gold (1166.20) is continuing to trade lower and is retaining the downside pressure. Lack of strength to see a bounce back is keeping up the chances of further downmove towards 1150-40.


CURRENCIES
The Euro (1.3056) witnessed a sharp rise yesterday following the positive consumer sentiment data release yesterday. However, the Resistance in 1.3100-25 region has held and it has come off from the high of 1.3107. Support is seen in 1.3000-2970 region which might be tested today. Dollar-Yen (86.31) is retaining its downside pressure and is now trading near its significant Support region (86.20-00) a break below which might see further downmove to 85-84.80 in the coming days. Euro-Yen Cross (112.67) has come off sharply from yesterday's high of 114.23 and might see further dip to 112.00-111.50 today. Resistance is seen in 113.50-114.00 region.

Dollar-Swiss touched a low of 1.0374 and has come up. We now see good chances of a rally towards 1.0500-50 on the pair today. Aussie is trading below 0.9000 and may fall towards 0.8900 in the coming sessions today. Cable may move in the range of 1.5550-650 in the coming sessions today before we see a break on the either side.

The Asians are trading slightly stronger.The Korean-Won is trading near 1184 and USD-SGD is trading near 1.3615. Dollar-Rupee has closed at 46.5325/5425. The next significant Support level to watch for is 46.45.


INTEREST RATES
The 3M USD LIBOR was down 1 bps to be set at 0.47%. The 2Y and 10Y yield was down 4 bps to quote at 0.57% while the 10Y yield was flat at 2.98%.


DATA TODAY
JP Unemp
...Actual 5.3%...Previous 5.2%
http://www.kshitij.com/fundamentals/funcharts/jpunemployment.shtml

09:00 GMT EU Unemp
...Expected 10.0%...Previous 10.0%

12:30 GMT US GDP Q2 '10 (Adv)
...Expected 2.5%...Previous 2.7%
http://www.kshitij.com/fundamentals/funcharts/usgdp.shtml

12:30 GMT CA GDP
...Expected 0.1%...Previous 0.0%


DATA YESTERDAY
09:00 GMT EU Biz Climate
...Actual 101.30...Previous 99.0