US Morning Report

Markets in a Flash

• The Dollar has started to weaken in the past few hours against other major currencies. China continues to shift the world’s largest FX reserves out of Dollars.
• The USD/JPY is trading very close to its lows, further weakness in the USD may see the pair making new ground.
• US equity futures are sitting around level today, with no clear direction to the direction of equity markets at 0930ET.
• Oil is trading nearly -1.0% lower in today’s session and is at $75.00. Gold is holding on to its recent gains at $1225.00.
• Asian markets finished mixed again overnight. In reverse to yesterday Chinese and Hong Kong markets fell while Japanese markets rose.
• European equity markets are lower this morning as the US markets fell slightly from the level they were at when Europe closed yesterday.

News Focus
BHP Billiton makes Hostile Bid for Potash

After Potash Corp rejected BHP Billiton’s unsolicited bid of $39Bn, the world’s largest miner has returned with a hostile bid. BHP Billiton has launched a fully funded cash hostile takeover bid for Potash, the world’s largest fertilizer producer. Potash’s share price jumped nearly 30% yesterday as BHP’s share price fell a couple of percent. The offer of $39Bn is roughly 20% higher than the company was valued at on the 11th Aug, but it is expected that BHP Billiton may have tpo increase its bid if it is going to be successful.

0700ET – MBA Purchase Applications

Composite Index - W/W Change

Previous 0.6 %
Actual 13.0 %

The new purchase index for applications fell -3.4% this week but the composite index was pulled higher by the refinancing index. The refinancing index jumped 17.1% this week to its highest level since May 2009.

Coming up Today

1030ET – 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.