GOOD MORNING!


EQUITIES
The US Equities fell over European debt concerns yesterday. The Dow (10340.69) was down 1.03% and the S&P 500 (1091.84) was down 1.15%. The Dow may move in a small range of 10250-500 in the next few days followed by an upmove towards 10700-50 in the coming weeks.

All Asians in the red today. The Nikkei (9044.39.62, down 1.97%) fell over stronger Yen and may see some more weakness towards 8950-9000, however, a weekly close below 9000 may pull it towards 8500 by the month end. The Shanghai (2681.69, down 0.62%) is continuing to retain its range of 2600 and 2700. In India, the Sensex (18645.06, up 0.43%) and the Nifty (5604.00, up 0.49%) gained following the strength in the markets globally. We may see the Sensex and the Nifty fall towards 17500 and 5400-300 in the coming weeks, though, the markets may test some patience before they see these levels.

COMMODITIES
Crude (73.69) bounced back from yesterday's low of 72.63 following an explosion in a Mexican oil refinery. However, the broader outlook is still bearish for a fall towards 71.00-70.00 with strong Resistance at 76.00-15 region.

Gold (1257.40) has risen breaking above its Resistance at 1250. Renewed concerns about the European banking sector triggered the rise in the price. A further rise towards 1275 is looking likley in the coming days. A weekly close above 1250 would be very bullish for a rise towards 1300 or even higher going forward. To see the Gold graph click on the following link:
http://www.kshitij.com/graphgallery/goldma.shtml#ma

CURRENCIES
The Euro (1.2690) is continuing to trade . A further dip towards the crucial and important Support at 1.2605 [50% retracement level of the rise from 1.1876 (Jun-10) to 1.3334 (Aug-10)] is looking likely today. Dollar-Yen (83.60) is retaining its overall downtrend and is now trading below 84. We might see the downmove continuing towards 83.00-82.80 in the coming days. The Euro-Yen Cross (106.14) is keeping up its downside momentum and a strong break below the immediate Support at 106.00 might pull it further down towards 105.00-104.80 today. Resistance is seen at 107.40.

Dollar-Swiss is trading near 1.0100 and we continue to stay out of the market for an eventual dip towards 1.0050. Cable (1.5378) may see some upmove towards 1.5425-50 today. Aussie may see some upmove towards 0.9175-200 in the coming sessions today.

In Asia the Korean-Won is trading near 1175 and USD-SGD is trading near 1.3465. Dollar-Rupee has closed higher yesterday at 46.84/85 and has chances of rising further up towards 46.95-47.00 while above the Support at 46.75.


INTEREST RATES
The 3M USD LIBOR was unchanged at 0.29%. The 2Y were down 2 bps to quote at 0.48% and 10Y yields were up 10 bps to quote at 2.68%.


DATA TODAY
13:00 GMT BoC Meeting
...Expected 1.00%...Previous 0.75%
http://www.kshitij.com/fundamentals/funcharts/caboc.shtml

DATA YESTERDAY
BOJ Meeting
...Actual 0.10%...Previous 0.10%
http://www.kshitij.com/fundamentals/funcharts/jpboj.shtml

AUD RBA Interest Rate
...Actual 4.50%...Previous 4.50%
http://www.kshitij.com/fundamentals/funcharts/aurba.shtml