US markets pre open run down

Markets in a Flash
• Asian markets closed higher overnight with most Asian markets closing up over 1 or 2%. Chinese markets finished slightly down.
• European markets are all up in morning trading following the bullish finish in the US markets yesterday.
• Commodities prices are mainly up. Oil and energy commodities are all up. Agriculture commodities are mixed in their directions.
• The USD loses strength as risk appetite regains. The EUR/USD makes new monthly highs at 1.2675. The GBP/USD makes new monthly highs at 1.5234.
• US equity futures are showing small falls after yesterdays large rises in the equity markets.

News Focus
World growth has been upgraded for 2010 by the International Monetary Fund. The rate that the global economy is expected to grow by in 2010 has been raised from 4.2% to 4.6%, this is after a better than expected first half to 2010. The expected growth rate for 2011 was held at 4.3%. The global economy is being help out of recession by the world largest economy and is neighbour Canada. China, India and Brazil are also seeing strong growth which is helping the recovery. The IMF did also make reference to the problems faced by Europe and the banking problems in the region.

Just Released - Jobless Claims
Previous 472 K Consensus 465 K
Consensus Range 450 K to 475 K Actual 454 K
This week’s jobless claims figure came in better than expected. The figure has come in under consensus showing less people than thought have claimed joblessness. This figure suggests that the employment market is in better health that initially thought. This figure should prove bullish for the equity markets when they open at 0930ET.

Coming up Today
1030ET – Natural Gas Report
The weekly report by the Energy Information Administration provides data on US natural gas stocks. A report showing a drop in natural gas stocks may signal increasing demand in the economy and see an increase in the price of the commodity.
1100ET – 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.