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TradeTheNews.com Market Internals update at 14:00ET

Market Internals update at 14:00ET
- NYSE volume 620M shares, about 14% above its three-month average; decliners lead advancers by 2.5:1.
- NASDAQ volume 1.34B shares, about 13% above its three-month average; decliners lead advancers by 2.7:1.
- VIX index +7.5% at just over 19.00

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TradeTheNews.com Market Internals update at 10:30ET

Market Internals update at 10:30ET
- NYSE volume 235M shares, about 10% above its three-month average; decliners lead advancers by 1.9:1.
- NASDAQ volume 510M shares, about 16% above its three-month average; decliners lead advancers by 2.2:1.
- VIX index +2.75% at just over 19.00

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TradeTheNews.com TradeTheNews.com European Market Update: EU raises GDP and inflation view for 2011

TradeTheNews.com European Market Update: EU raises GDP and inflation view for 2011
<b>***Economic Data***
- (IN) India Trade Balance: -$8.0B v -$2.6B prior; Exports Y/Y: 32.4% v 36.4% prior; Imports Y/Y: +13.1 v -11.1% prior</b>
- (SZ) Swiss Q4 GDP Q/Q: 0.9% v 0.5%e; Y/Y: 3.1% v 2.7%e
- (IR) Ireland Feb NCB Manufacturing PMI: 56.7 v 55.8 prior
- (UK) Feb Nationwide House Prices M/M: +0.3% v -0.2%e; Y/Y: -0.1% v -0.2%e
- (SW) Sweden Feb Swedbank PMI Survey:60.9 v 61.5e
- (TT) Taiwan Jan Leading Index M/M: 0.6% v 0.3% prior; Coincident Index M/M: 1.8% v 1.5% prior
- (TU) Turkey Feb Manufacturing PMI: 58.5 v 57.2 prior
- (PD) Poland Feb Manufacturing PMI: 53.8 v 55.6 prior
- (HU) Hungary Feb PMI: 57.0 v 54.7 prior
- (NO) Norway Feb PMI: 58.7 v 55.8 prior
- (HU) Hungary Jan Producer Prices M/M: 0.0% v 0.0% prior; Y/Y: 7.0% v 7.5%e
- (FI) Finland Q4 GDP Q/Q: 1.7% v 1.8%e; Y/Y: 5.2% v 5.0%e
<b>- (SP) Spain Feb Manufacturing PMI: 52.1 v 52.0 prior; Highest since Apr 2010</b>
- (CZ) Czech Feb Manufacturing PMI: 59.8 v 60.5 prior
- (DE) Denmark Jan Retail Sales M/M: 0.2% v 0.0% prior; Y/Y: 0.3% v 0.3% prior
- (SW) Sweden Q4 GDP Q/Q: 1.2% v 1.0%e; Y/Y: 7.3% v 7.0%e
- (SW) Sweden Dec Non-Manual Workers Wages Y/Y: % v 1.6%e
- (SZ) Swiss Feb SVME-Purchasing Managers Index: 63.5 v 60.9e
- (IT) Italy Feb PMI Manufacturing: 59.0 v 57.3e
<b>- (FR) France Feb Final PMI Manufacturing: 55.7 v 55.3e
- (GE) Germany Feb Final PMI Manufacturing: 62.7 v 62.6e; Record high
- (GE) Germany Feb Unemployment Change: -52.0K v -18Ke; Unemployment Rate: 7.3% v 7.4%e</b>
<b>- (EU) Euro Zone Feb Final PMI Manufacturing: 59.0 v 59.0e</b>
- (SA) South Africa Feb Kagiso PMI: 54.8 v 54.6 prior
- (IT) Italy Jan Preliminary Unemployment Rate: 8.6% v 8.6%e
- (GR) Greece Feb PMI: 42.8 v 42.8 prior
<b>- (UK) Feb PMI Manufacturing: 61.5 v 61.0e
- (UK) Jan Net Consumer Credit: -&#163;300M v +&#163;100Me; Net Lending: &#163;1.8B v &#163;0.1Be
- (UK) Jan Mortgage Approvals: 45.7K v 42.5Ke</b>
- (UK) Jan M4 Money Supply M/M: 0.8% v -1.3% prior; Y/Y: -1.7% v -1.5% prior; M4 Ex OFCs 3M Annualized: 4.9% v 2.9% prior
- (DE) Denmark Feb PMI Survey: 66.4 v 62.4 prior
<b>- (EU) Euro Zone Feb CPI Estimate Y/Y:2.4% v 2.4%e
- (EU) Euro Zone Jan Unemployment Rate: 9.9% v 10.0%e</b>
- (IT) Italy Feb Preliminary CPI (NIC incl. tobacco) M/M: 0.3% v 0.2%e; Y/Y: 2.4% v 2.3%e
- (IT) Italy Feb Preliminary CPI EU Harmonized M/M: 0.2% v 0.1%e; Y/Y: %2.1 v 2.1%e
- (IT) Italy Dec Annual GDP: 1.3% v 1.1%e; Deficit to GDP Ratio: 4.6% v 5.0%e
- (BE) Belgium Jan Unemployment Rate: 8.0% v 8.1% prior
- (GR) Greece Dec Retail Sales Y/Y: -13.2% v -6.3% prior
- (PE) Peru Feb Consumer Price Index M/M: 0.4 v 0.4%e; Wholesale Prices M/M: 0.6 v 1.0% prior
- (PO) Portugal Jan Industrial Production M/M: -4.2% v 4.0% prior; Y/Y: -1.7 v 3.6% prior
- (PO) Portugal Jan Retail Sales M/M: -1.6 v 4.0% prior; Y/Y: -5.3% v -1.2% prior


<b>Fixed Income</b>
- (SA) S<b>outh Africa</b> sold ZAR2.1B in 2018 and 2021
Bonds
- (AS) <b>Austria Debt Agency</b> sold &#8364;1.26B vs. &#8364;1.3B indicated in 2015 and 2022 Bonds
- Sold &#8364;600M in 3.5% July 2015 RAGB; avg yield 2.514% v 1.816% prior
- Sold &#8364;600M in 3.65% Apr 2022 RAGB; avg yield 3.647% v 2.811% prior
- <b>ECB</b> allotted &#8364;124.4B in Main 7-day Refi Operation at foxed 1.0%
- (HU) <b>Hungary Debt Agency</b> (AKK) sold HUF50B in 3-Month Bills; Avg Yield 5.95% v 5/96% prior
- (BE) <b>Belgium Debt Agency</b> sold approx &#8364;3.13B in 3-month and 6-month Bills
- Sold &#8364;1.560B in 3-month Bills; avg yield 0.916% v 0.940% prior; Bid-to-cover: 2.65x v 1.9x prior
- Sold &#8364;1.565B in 6-month Bills; avg yield 1.046% v 0.992% prior; Bid-to-cover: 2.54x v 1.93x prior
- (UK) <b>DMO</b> sold &#163;4.0B in 2% conventional 2016 Gilts; Avg Yield 2.658% v 2.701% prior; Bid-to-Cover:1.79x v 1.93x prior; Tail 0.4bps


*** SPEAKERS/FIXED INCOME/FX/COMMODITIES/ERRATUM ***
<b>***Notes/Observations:</b>
- Austral Central Bank leaves rates steady as expected
- German employment picture continues to improve
- BRIC nations PMI steady to improving
- European PMI data continues to be constructive
- Fed Chairman Bernanke semi-annual Congressional testimony the next two days
- market focus on developments later on in the week, where an ECB policy announcement is due and a range of U.S. economic releases culminate in Friday's U.S. employment report


<b>Equities:
FTSE 100 +0.40% at 6015,</b> DAX +0.80% at 7331, CAC 40 +0.60% at 4136, IBEX 35 flat at about 10854, FTSE MIB +0.70% at 22,626, SMI +0.70% at 6656

- <b>European shares were consistently in positive territory during the first day of the month due to stronger than expected Chinese PMI data.</b> Macro data out of Europe were welcomed by investors as the Eurozone CPI came in line with expectations and unemployment was lower. Traders continue to monitor oil prices and tensions in North Africa as protests gather momentum in Yemen. Egypt bourses expected to open today are now due to restart operating on March 6th.
- Most of European earnings were positive; auto makers and mining stocks led the rally while HSBC dropped again today, unrecovered from yesterday's disappointing quarter and subsequent downgrade by UBS.
UK miner <b>Fresnillo</b> [FRES.UK] reported a significant increase in both earnings and its silver production for the year and approved an increase of 151% in its exploration budget. Shares gained over 2% during the session. British plan parts maker <b>GKN</b> [GKN.UK] almost quadrupled its profit and increased its revenues in 2010 beating analysts' estimates. Outlook was positive for the remainder of the year. Its domestic peer <b>Meggit</b> [MGGT.UK] also reported strong results and expected an organic growth of 6-7% over the next five years with similar growth rates in Pacific Scientific Aerospace. Meggit also increased its dividend by 9%.
- Out of France, <b>Vivendi</b> [VIV.FR] is trading in positive territory after its FY10 results, reporting an increase in profit which, nonetheless, came in line with estimates. Company targeted only a slight growth in 2011.

<b>Speakers:
- EU Commission released its interim forecast for EU and Euro Zone.</b> On the growth front it raised the 2011 EU GDP growth to 1.8% from 1.7% prior. For Germany it raised the GDP view to 2.4% fro 2.2% prior. For France the 2011 GDP growth was tweaked to 1.7% from 1.6% prior. The commission raised its 2011 EU inflation forecast to 2.5% from 2.1% prior.
- E<b>U Commissioner Rehn</b> commented that the Euro Zone headline inflation was expected to peak in Q1 and he noted that Core inflation was still low and expected to rise only slowly. On growth he observed that Germany was expected to lead the EU recovery but Spanish recovery remained somewhat more muted. EU Commission forecasts were based upon oil being over $100/barrel and Rehn noted that if oil prices were 10% higher it could impact on economic growth by less than 0.1% in 2011.
- <b>Czech Central Bank commented that stress tests</b> showed that the banking sector was resilient enough to deal with possible adverse shocks. Under the adverse scenario, CZK16B in capital would be needed by banks (about 0.5% of GDP). Under the pessimistic version of the adverse scenario, banks would need CZK28B in capital (about 0.8% of GDP)
- <b>EU document for March 11 leaders' talks</b> noted that the Euro zone countries should have national debt rules but would be up to Euro zone countries to decide on form of fiscal rule. Euro zone countries should make pension, social benefit system sustainable. Wage and productivity developments were key for competitiveness, unit labor costs to be monitored. EU executives to present proposal on common consolidated corporate tax base in coming weeks and member countries should commit to setting up national bank resolution schemes. The document noted that not all reforms needed to be done at once, Euro zone countries to chose when to tackle which.
- <b>China Economist Lu Mai</b> commented that the CNY currency was undervalued by less than 8% against USD and noted that a gradual appreciation could address the CNY issue.
- Libya's top oil official reiterated that almost half of the country's oil output had been cut
- <b>Hungary presented its budget with announced reforms</b> and targeted 2012 deficit to GDP ratio at 2.5% and declining to 2.2% and 1.9% in 2013 and 2014 respectively.

<b>Currencies/Fixed income:</b>
- The sentiment in the FX markets continued to favor USD shorts amid a persistently high oil price and anticipation of hawkish ECB rhetoric later this week. The EU Commission GDP and inflation projections scratched the surface with its bump up in inflation forecasts across the region for 2011.
- The Greenback continued to test the pivotal Feb 4th high of 1.3862 in the EUR/USD pair. The market focus would likely to look ahead for key developments later on in the week to gauge momentum. The ECB policy announcement was due on Thursday and a range of U.S. economic releases culminate in Friday's U.S. employment report. The technical fate of the USD might be set in stone before the week is complete.

<b>Geo-Political/ In the Papers:</b>
- The Financial Times reported that Italian banks are seeking to have their stakes in the Bank of Italy marked-to-market. Such a move would ease pressure on the banks to raise capital. Over the weekend, the ECB's Draghi increased pressure on banks in Italy to raise their core capital ratios.
- In Irish political news, the Fine Gael and Labour party met regarding the possible formation of the next government. According to the Irish national press, it is suggested that a deal will be done prior to the Labour party conference next weekend.
- In an opinion piece in the Guardian, the UK Chancellor of the Exchequer Osborne criticized the Labour party's economic policy, noting how Labour party officials repeatedly tried to silence the IMF's concerns about British finances. He also questioned the commitments by the party to lower the deficit.
- The Telegraph's Evans-Pritchard stated the US Federal Reserve may have misjudged the strength of the US economy, noting how the new orders component of the February Chicago PMI for the Mid-West region rose to the highest level since December 1983, which could be an indication that the Fed misjudged the level of spare capacity, and thus inflation risks.

<b>***Looking Ahead***</b>
6:00 BOE's King, Bean, Fisher, Miles and Weale testify to Parliament's Treasury Committee today
6:00 (IT) Italy Dec Annual GDP: 1.1%e v -5.1% prior; Deficit to GDP Ratio: 5.0%e v 5.3% prior
- 7:00 (EU) ECB to drain &#8364;77.5B in 7-day Term Deposit Tender
- 7:45 (US) Weekly ICSC Chain Store Sales
- 8:00 (BR) Brazil Feb PMI Manufacturing: No est v 53.1 prior
- 8:30 (SI) Singapore Feb Purchasing Managers Index: 49.8e v 50.5 prior; Electronics Sector Index: 50.4e v 50.8 prior
- 8:55 (US) Weekly Redbook Retail Sales
- 9:00 (BR) Brazil Feb Trade Balance: $1.1Be v $424M prior
<b>- 9:00 (CA) Bank of Canada Interest Rate Decision: Expected to main interest rate at 1.00%</b>
- 10:00 (AR) Argentina Opening of Congressional Session
<b>- 10:00 (US) Fed Chairman Bernanke to give Semiannual Testimony </b>
- 10:00 (US) Jan Construction Spending M/M: -0.5%e v -2.5% prior
- 10:00 (MX) Mexico Jan Remittances: No est v $1.7B prior
<b>- 10:00 (US) Feb ISM Manufacturing: 60.5e v 60.8 prior; Prices Paid: 81.5e v 81.5 prior</b>
- 11:00 (US) Fed to purchase $1.5-2.5B in Notes/Bonds
- 11:30 (US) Treasury to sell 4-Week Bills
- 11:30 (EU) EU's De Gucht Speaks at Brussels Think Tank
- 12:00 (EU) Erdogan Opens Turkey's New EU Mission in Brussels
- 12:00 (IT) Italy Feb New Car Registrations Y/Y: No est v -20.7% prior
- 13:00 (IT) Italy Feb Budget Balance: No est v -&#8364;2.0B; Budget Balance YTD: No est v -&#8364;2.0B prior
- 16:30 (US) API Energy Inventories
<b>- 17:00 (US) Feb Domestic Vehicle Sales: 9.70Me v 9.59M prior; Total Vehicle Sales: 12.67Me v 12.54M prior</b>
- 23:15 (IN) Trade ministers of Asean nations and India inaugurate fair

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TradeTheNews.com TradeTheNews.com Asian Market Update: Stronger data out of Australia with target rate left unchanged; China Feb PMI Manufacturing hits 6-month low and CBRC declares lending growth has been too fast

TradeTheNews.com Asian Market Update: Stronger data out of Australia with target rate left unchanged; China Feb PMI Manufacturing hits 6-month low and CBRC declares lending growth has been too fast

***Economic Data***
<b>- (AU) RESERVE BANK OF AUSTRALIA (RBA) LEAVES CASH TARGET RATE AT 4.75%, AS EXPECTED; Current monetary policy is appropriate
- (CH) CHINA FEB HSBC MANUFACTURING PMI: 51.7 V 52.5E (7-month low)
- (CH) CHINA FEB PMI MANUFACTURING: 52.2 V 52.1E (6-month low)
- (AU) AUSTRALIA JAN RETAIL SALES M/M: 0.4% V 0.3%E (3-month high)
- (AU) AUSTRALIA FEB AIG PERFORMANCE OF MANUFACTURING INDEX: 51.1 V 46.7 PRIOR (1st expansion in 6-months)</b>
- (KS) SOUTH KOREA FEB TRADE BALANCE $2.8B V $1.8BE (lowest since August)
- (JP) JAPAN JAN OVERALL HOUSEHOLD SPENDING Y/Y: -1.0% V -1.4%E (4th consecutive month of decline)
<b>- (JP) JAPAN JAN JOBLESS RATE: 4.9% V 4.9%E; JOB-TO-APPLICANT RATIO: 0.61 V 0.58E (2-year high)</b>
- (JP) JAPAN JAN LABOR CASH EARNINGS Y/Y: 0.2% V 0.3%E
- (AU) AUSTRALIA Q4 CURRENT ACCOUNT BALANCE (A$): -7.3B V -7.0BE; NET EXPORTS OF GDP: 0.0% V 0.2%E
- (NZ) NEW ZEALAND FEB ANZ COMMODITY PRICE: 2.7% V 3.8% PRIOR
- (TT) TAIWAN FEB HSBC TAIWAN MANUFACTURING PMI: 55.8 V 59.8 PRIOR
<b>- (JP) JAPAN FEB VEHICLE SALES Y/Y: -14.3% V -22.0% PRIOR (6th consecutive decline)</b>
- (ID) INDONESIA JAN TOTAL TRADE BALANCE: $1.9B V $2.7BE
- (ID) INDONESIA FEB INFLATION NSA M/M: 0.1% V 0.4%E; Y/Y: 6.8% V 7.1%E; CORE INFLATION Y/Y: 4.4% V 4.3%E
- (TH) THAILAND FEB CONSUMER PRICE INDEX (CPI) M/M: 0.4% V 0.5% PRIOR; Y/Y: 2.9% V 3.0% PRIOR; CORE CPI Y/Y: 1.5% V 1.3% PRIOR
- (VN) VIETNAM FEB INDUSTRIAL OUTPUT YTD Y/Y: 17.7% V 16.1% PRIOR
- (IN) INDIA FEBRUARY MARKIT MANUFACTURING PMI: 57.9 V 56.7 PRIOR
- (HK) Macau Feb casino Rev y/y: +47.7% to MOP19.9B

***Markets Snapshot (as of 12:30amET)***
- Nikkei225 +0.0%
- S&P/ASX -0.1%
- Kospi closed for holiday
- Taiex +1.4%
- Shanghai Composite +0.6%
- Hang Seng +0.1%
- Mar S&P Futures +0.2% at 1,328
- Apr Gold +0.2% $1,413/oz
- Apr Crude oil +0.5% at $97.44/brl
- Apr Brent Crude -0.3% at $111.78/brl
- May Copper -0.5% at $4.47
- May Wheat +0.3% at $8.19
- Mar Silve+0.3% at $33.89

***FX USD Majors Session Range***
- EUR/USD: 1.3830-1.3800
- GBP/USD: 1.6298-1.6256
- USD/CHF: 0.9322-0.9284
- USD/CAD: 0.9724-0.9706
- AUD/USD: 1.0201-1.0153
- NZD/USD: 0.7532-0.7511
- USD/JPY: 82.17-81.72

***Overview/Top Headlines***
- Heavy economic session in Asia today across all markets, starting with <b>Australia AIG performance of Manufacturing at 51.1, the first expansion reading in 6-months. Retail sales also came in higher than expected at 0.4% which was a 3-month high.</b> Currency action in the session was fairly muted with the exception being <b>GBP/USD reaching a 4-month high</b> at 1.6280 quickly followed by <b>AUD/USD hitting a 2-month high</b> at 1.02. Brent paired back some of yesterday's gains hovering just below $112 with crude rising to $97.48. <b>Chinese press reported that Libya has resumed shipments of oil to China.</b>

- China PBoC Vice-Gov Yi Gang: China's excessively large trade surplus is the source of inflation and multiple measures should be taken to deal with inflation. Saying <b>China could reduce its trade surplus by increasing imports rather than simply cutting exports.</b> <b>China Feb PMI Manufacturing came in at 52.2 a 6-month low</b> with input prices rising to 70.1 from 69.3 prior. After the release we saw May copper fall 0.4% to $4.48. China HSBC Manufacturing was also a disappointment coming in at a 7-month low at 51.7.

<b>- (CH) China Banking Regulatory Commission (CBRC): Lending growth over the past 2-years has been too fast and exceeding the upper limit; Property market is increasingly irrational</b> and credit risks are accumulating. After the close we saw a revision from the US Treasury that <b>China's holding of US treasury securities is 30% more than the assessment made by the Treasury Department two weeks ago.</b>

- Australia RBA left the cash target rate unchanged as expected at 4.75%, saying that <b>inflation is consistent with 2%-3% target band another key comment was wages are growing at a pace prior to economic downturn.</b> AUD/USD fell approx 20 pips below $1.0170 following the announcement.

***Speakers/Geopolitical/In the press***
<b>- (HK) Hong Kong Monetary Authority Chan: Expect an interest rate hike sooner than anticipated - speaking to legislature
- (CH) China's National Development and Reform Commission (NDRC) economist Zhang Ping: Feb CPI is likely to slow from January;</b> China will be able to keep prices stable by boosting grain output
- (CH) China Stats Bureau: China's low-cost production advantage is on the decline
- (JP) Japan Econ Min Yosano: Concerned there is a possibility Japan may see a govt shutdown
- USD/JPY: BOJ Gov Shirakawa: At current levels, the Yen is not an extra risk for Japan's economy

***Equities***
<b>- Cheung Kong Infrastructure, 1038.HK: Considering more than 20 investment projects; No comment on bid for E.ON's UK Grid assets due to confidentiality agreement</b>
- Hang Seng Bank Ltd, 11.HK: CEO Leung: No plans to raise funds right now; Shift to prime linked loans will not curb market share - conf call comments
- NAB.AU: Maintains customer satisfaction levels in January while its peers decline because of higher lending costs - Sydney Morning Herald

***FX/Fixed Income/Commodities***
<b>- (CH) China PBoC sells 1-yr bills at 2.9972% v 2.9972% w/w</b>
- (JP) Japan MoF sold &#165;2.0T in 1.3% 10-yr bonds (1.2% prior), bid to cover 2.91X v 2.69X prior
- (AU) Australia ABARES: Extreme weather has erased A$2.3B from agricultural production and A$2B-2.5B from coal exports - The Australian
- (AU) Australia Newcastle coal exports +9.0% for week ending Feb. 28th; 12 Coal ships waiting
- (CH) Beijing is seeing a surge of gold buying over fears of inflation; Largest jewelry store Beijing Caibai reports YTD sales +70% y/y - China Daily
<b>- (CH) China Govt releases environmental standards for rare earth miners; Goes into effect Oct 1st expected to impact 60% of miners in a negative way - China Daily
- (CH) International Grains Council (IGC) Raises China's 2010/11 wheat import forecast by 50% to 1.5M tons</b>

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TradeTheNews.com Market Internals update at 15:30ET

Market Internals update at 15:30ET
- NYSE volume 670M shares, about 4% below its three-month average; advancers lead decliners by 1.6:1.
- NASDAQ volume 1.51B shares, about 1% below its three-month average; decliners lead advancers by 1.4:1.
- VIX index -1.4% at just over 18.00

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TradeTheNews.com Market Internals update at 12:00ET

Market Internals update at 12:00ET
- NYSE volume 355M shares, about 5% below its three-month average; advancers lead decliners by 2.2:1.
- NASDAQ volume 780M shares, about 4% below its three-month average; advancers lead decliners by 1.1:1.
- VIX index -2.75% at just over 18.00

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TradeTheNews.com Market Internals update at 10:30ET

Market Internals update at 10:30ET
- NYSE volume 210M shares, about 3% below its three-month average; advancers lead decliners by 3.1:1.
- NASDAQ volume 410M shares, about 6% below its three-month average; advancers lead decliners by 1.7:1.
- VIX index -4.3% at just over 18.00

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TradeTheNews.com Market Internals update at 14:00ET

Market Internals update at 14:00ET
- NYSE volume 500M shares, about 7% below its three-month average; advancers lead decliners by 3.8:1.
- NASDAQ volume 1.18B shares, about 1% above its three-month average; advancers lead decliners by 2.9:1.
- VIX index -10.75% at just over 19.00

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TradeTheNews.com Market Internals update at 12:00ET

Market Internals update at 12:00ET
- NYSE volume 355M shares, about 6% below its three-month average; advancers lead decliners by 3.1:1.
- NASDAQ volume 830M shares, about 3% above its three-month average; advancers lead decliners by 2.2:1.
- VIX index -9.4% at just over 19.00

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TradeTheNews.com TradeTheNews.com Asian Market Update: Currencies continue to strengthen against the dollar; Oil and gold benefit from continued geopolitical unrest; Japan shows a sign of recovery

TradeTheNews.com Asian Market Update: Currencies continue to strengthen against the dollar; Oil and gold benefit from continued geopolitical unrest; Japan shows a sign of recovery
***Economic Data***
<b>- (JP) JAPAN JAN NATIONAL CPI Y/Y: 0.0% V -0.1%E; NATIONAL CORE: -0.2% V -0.3%E (highest since Apr 2009); FEB TOKYO CPI Y/Y: -0.1% V -0.2%E; TOKYO CORE Y/Y: -0.4% V -0.3%E</b>
- (KS) SOUTH KOREA JAN CURRENT ACCOUNT: $229M V $2.1B PRIOR (11-month low); GOODS BALANCE: $1.6B V $3.7B PRIOR
- (SI) SINGAPORE JAN INDUSTRIAL PRODUCTION M/M: 15.4% V 7.0%E; Y/Y: 10.5% V 6.9%E
- (PH) PHILIPPINES DEC TRADE BALANCE: -$729M V -$798M PRIOR
- (UK) UK FEB GFK CONSUMER CONFIDENCE: -28 V -27E
- (CO) Colombia Dec Industrial Production Y/Y: 4.0% v 4.0%e; Retail Sales Y/Y: 12.4% v 19.0%e

***Markets Snapshot (as of 12:30amET)***
- Nikkei225 +0.6%
- S&P/ASX +0.6%
- Kospi +0.6%
- Taiex +0.9%
- Shanghai Composite +0.4%
- Hang Seng +1.6%
- Mar S&P Futures +0.4% at 1,307
- Apr Gold +0.3% $1,406/oz
- Apr Crude oil +0.4% at $97.65/brl
- Mar Copper +0.7% at $4.35
- Mar Wheat +0.8% at $7.53
- Apr Brent Crude +0.7% at $111.94/brl
- Mar Silver -1.1% at $32.80

***FX USD Majors Session Range***
- EUR/USD: 1.3798-1.3837
- GBP/USD: 1.6121-1.6158
- USD/CHF: 0.9234-0.9265
- USD/CAD: 0.9811-0.9832
- AUD/USD: 1.0086-1.0140
- NZD/USD: 0.7471-0.7526
- USD/JPY: 82.81.82-82.06

***Overview/Top Headlines***
<b>- Asian markets spent Friday trading higher after 4 days of losses</b>, Hang Seng was the biggest gainer up 1.6% at about mid-day. <b>Silver seems to have lost some momentum</b> after hitting a 31-year high of $34.30. <b>Brent crude paired back from highs seen yesterday when it almost reached $120</b>, but may have found its bottom around $110. Front month crude settled below $98 for the Asian session with a small range. <b>Currencies continued their dollar aversion</b> with a second consecutive session of broad dollar weakness, EUR/USD hit a 3-week high above $1.3820, gold gained 0.4% on the session as the classic safe haven.

- Japan's CPI numbers with national core coming in at 0.0% m/m affirmed BoJ comments and showed that the <b>country is slowing making its way out of deflation</b>. <b>South Korea's Q4 household income fell 1.2% y/y which was the first time in 5 quarters</b> adj for inflation. <b>China Stats Bureau Official Pang Xiaolin announced that the Govt has come up with a new PPI calculation starting 2011</b> also said that 2010 price increases will have a lag effect on 2011 CPI. This follows a new housing price calculation and a change in CPI weighting in China. <b>Taiwan Deputy Fin Min Chang said the Govt was considering implementing a 10% tax on luxury goods and a 15% tax on property speculation.</b>

- <b>Sinopec entered into a 20-year agreement with Australia Pacific to buy 4.3M tons/year of LNG</b> from Australia Pacific, Origin Energy in Australia part of the AP group gained 6.0% on the news. Vale came in with strong Q4 earnings after the close reporting Rev of $15.2B v $14Be. <b>Honda reported a decline of 1.6% y/y in global production for the month of Jan.</b>

***Speakers/Geopolitical/In the press***
<b>- (CH) JPMorgan analyst expects China to account for 8-9% of global M&A deals in 2011 - China Daily</b>
- (CH) China Think Tank: Inflation could peak in H1; 2011 inflation is expected to surpass 2010; Sees 2011 GDP at 9.0% - China People's Daily
<b>- (NZ) S&P comments that the earthquake could put some pressure on the ratings of the financial sector; Though major bank sector remains well placed at current rating</b>
- (JP) Japan FY11 budget is expected to clear lower house on Monday

***Equities***
<b>- AIA, 1299.HK: Reports FY10 Net profit $2.7B v $2.1Be; Net premiums $11.1B; Aiming to pay its first dividend in July and looking to keep a smooth and sustainable dividend policy
- WOW.AU: Reports H1 Net A$1.16B v A$1.1B y/y; Announces acquisition of Cellarmasters for A$340M</b>
- UOB.SI: Reports FY10 Net profit S$2.7B v S$2.5Be
- NSANY: Reports Jan global output 375.2K, +32.8% y/y
- Ajinomoto Co inc: President: Will raise prices to cope with rising raw material costs; Planning to open offices in Egypt, Turkey, Myanmar and the Ivory Coast as part of plan to have overseas sales account for 11% of Rev

***US Equities***
- VALE: Reports Q4 $1.12 v $0.98e, R$15.2B v $14Be; -0.8% after hours
<b>- BA: *WINS USAF REFUELING TANKER CONTRACT VALUED AT APPROX $35B; +3.9% after hours</b>
- GPS: Reports Q4 $0.60 v $0.58e, R$4.36B v $4.3Be; Increases dividend 12.5% to $0.45 from $0.40, Authorizes additional $2B share repurchase program (approx 14% of market cap); +0.9% after hours
<b>- ADSK: Reports Q4 $0.35 v $0.34e, R$527.7M v $515Me; +2.0% after hour</b>s

***FX/Fixed Income/Commodities***
- (AU) Australia sells A$700M in 2016 4.75% bonds at 5.3867% avg yield
- GLD: SPDR Gold Trust ETF daily holdings fall by 6.6 tons to 1,211.6 tons (lowest level since May 2010)
<b>- Sumitomo Metal Industries: Will raise prices domestically on seamless pipes by 15%
- (CH) Mongolia is looking to IPO the world's largest untapped coking coal deposit Tavan Tolgoi coal field - HK Standard</b>

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TradeTheNews.com Market Internals update at 14:00ET

Market Internals update at 14:00ET
- NYSE volume 660M shares, about 22% above its three-month average; decliners lead advancers by 1.9:1.
- NASDAQ volume 1.25B shares, about 7% above its three-month average; decliners lead advancers by 1.3:1.
- VIX index -0.6% at just over 22.00

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TradeTheNews.com TradeTheNews.com US Market Update

TradeTheNews.com US Market Update
Dow -41 S&P -2 NASDAQ +6.15
***Economic Data***
- (BR) Brazil Jan Unemployment Rate: 6.1% v 6.0%e
- (BR) Brazil Jan Total Outstanding Loans (BRL): 1.7T v 1.7T prior; Private Banks Lending: 993.0B v 987B prior
- (US) Jan Chicago Fed National Activity Index: -0.16 v 0.09e
- <b>(US) Initial Jobless Claims: 391K v 405Ke; Continuing Claims: 3.790M v 3.880Me</b>
- <b>(US) Jan Durable Goods Orders: 2.7% v 2.8%e; Durables Ex Transportation: -3.6% v +0.5%e</b>
- (BR) Brazil Jan Caged Formal Job Creation: 152K v 127.0Ke
- (MX) Mexico Jan Preliminary Trade Balance: +$62M v -$295Me
- (US) Jan New Home Sales: 284K v 305Ke
- (US) Dec House Price Index M/M: -0.3% v -0.1%e ; Q/Q: -0.8% v -0.6%e
- (US) EIA Weekly Natural gas Inventories: - 81 bcf v -80 to -85 bcf expected range
- (US) DOE Weekly Energy Inventories: Crude: +820K v +1Me; Gasoline: -2.8M v +500Ke; Distillate: -1.33M v -1Me; Utilization: 79.4% v 81.6%e

- The slide in US markets seen over the last two sessions seems to have stabilized this morning, with major indices more or less flat on the day. <b>Events in Libya continue to unfold, with Gaddafi holed up in Tripoli and much of the rest of the country in the hands of anti-government protestors. April WTI crude popped above $100 during the European session and traded as high as $103.41, before dropping back below $100 again by mid morning as the Saudis discuss sending more oil to Western Europe. Brent crude is trading above $113.</b> In the US, initial and continuing jobless claims surprised to the downside, with initial claims firmly below the 400K handle. The headline Jan durables data was right in line with expectations, although the ex transport figure was a big miss. Note that the durables figures will most likely be revised higher. January new home sales were predictably weak.

- <b>General Motors Q4 report closed out the automaker's first profitable year since 2004, compliments of the backing of the United States taxpayer. Fourth-quarter revenue topped expectations, although profits were impacted by charges incurred to buy back warrants from the Treasury.</b> Shares of GM are down 3%, and are a dollar below the level of the IPO from last November. Several more retail names reported results. Department store firms Target and Kohls were both right in line with the Street in their fourth quarters. Target's guidance for Q1 and the full year was sub par, however. Kohl's launched its first quarterly dividend in the company's history. Both KSS and TGT are up more than 2%. Oil services firm Transocean's Q4 results were a little soft, and shares of RIG are down 2%.

- <b>The euro appeared to struggle during most of the New York session after it failed to sustain moves above the 1.38 handle (dealers blamed M&A flows related to Sanofi's acquisition of Genzyme). Continued hawkish ECB comments on interest rates provided the momentum need to breech the 1.38</b> after Weber noted that rates can only go one way. Recent dollar softness prompted some dealers to note that Russia might try to slow the trend as USD/RUB threatened break 29.00. USD/CHF moved off its recent all-time lows at 0.9237 while USD/CAD hit fresh three-year lows at 0.9812.

***Looking Ahead***
- 11:00 (US) DOE Weekly Energy Inventories: : Crude: +1Me; Gasoline: +500Ke; Distillate: -1Me; Utilization: 81.6%e
- 11:00 (US) Fed to purchase $4-6B in Notes/Bonds
- 12:00 (FR) France Jan Net Change Jobseekers: No est v 27.1K prior; Total Jobseekers: No est v 2.725M prior
- 13:00 (US) Treasury to sell $29B in 7-Year Notes
- 13:00 (BR) Brazil Jan Central Gov't Biudget (BRL): 14.2Be v 14.4B prior
- 14:00 (AR) Argentina Jan Shop Center Sales Y/Y: No est v 36.8% prior
- 16:00 (CO) Colombia Dec Industrial Production Y/Y: 4.0%e v 4.5% prior; Retail Sales Y/Y: 19.0%e v 21.4% prior
- 18:00 (HU) EU Defense Ministers, NATO Sec-Gen meet in Budapest
- <b>19:00 (IR) Ireland Holds National Elections

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TradeTheNews.com Market Internals update at 14:00ET

Market Internals update at 14:00ET
- NYSE volume 775M shares, about 43% above its three-month average; decliners lead advancers by 2.2:1.
- NASDAQ volume 1.63B shares, about 40% above its three-month average; decliners lead advancers by 3.1:1.
- VIX index +9% at just over 22.00

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TradeTheNews.com Market Internals update at 12:00ET

Market Internals update at 12:00ET
- NYSE volume 475M shares, about 25% above its three-month average; decliners lead advancers by 1.6:1.
- NASDAQ volume 1.0B shares, about 24% above its three-month average; decliners lead advancers by 2.3:1.
- VIX index +3% at just over 21.00

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TradeTheNews.com TradeTheNews.com US Market Update

TradeTheNews.com US Market Update
***Economic Data***
- (BR) Brazil Feb FGV Construction Costs M/M:0.4% v 0.4%e
- (US) MBA Mortgage Applications w/e Feb 18th: +13.2% v -9.5% prior
- (US) ICSC/GS weekly chain store sales w/e Feb 19th: 2.6% w/w; 3.0% y/y
- (BR) Brazil Jan Current Account: -$5.4B v -$5.6Be; Foreign Direct Investment (FDI): $3.0B v $2.0Be
- (US) Redbook Retail Sales w/e Feb 19th:+2.7 % y/y; MTD: +1.5% v Jan
- (MX) Mexico Dec Retail Sales: 2.6% v 2.8%e
- <b>(US) Jan Existing Home Sales: 5.36M v 5.22Me</b>

- US equities are at or below yesterday's lows as the bloody unrest in Libya continues to drive flight-to-safety trading. <b>The April WTI futures contract remains just below yesterday's high, at $97.70, while Brent crude is around $110. Spot gold has climbed steadily during the US session, rising to above $1,410</b>. Both crude and gold have jumped after vague rumors made the rounds of potential plans for protests in Saudi Arabia tomorrow, although there have been no firm reports to back up this speculation. There has been one asset notably absent from the risk-off moves this morning: the US dollar. The January US existing homes sales data met expectations and shows continued gradual improvements, although analysts are warning that higher rates will blunt these gains in the coming months.

- <b>Shares of Hewlett-Packard are down more than 11% this morning and showing no signs of recovery in the wake of last night's Q1 earnings debacle. The firm missed revenue expectations in the quarter and guided well below consensus for Q2. In addition, HP cut its FY11 revenue outlook</b>. Executives blamed weak consumer PC demand and a lackluster showing from its IT services arm. A variety of retail names have largely reported decent results for the fourth quarter, although there have been some blemishes. Radio Shack slightly missed expectations and offered a very broad earnings forecast for 2011. Lowes quarterly results and 2011 outlook was more or less in line. Saks did very well in the quarter, with a strong comp sales result. TJX met expectations and raised its dividend. Shares of RSH and SKS have been volatile but remain in the black, while TJX and LOW are both down more than 1%. Major natural gas player Chesapeake Energy topped earnings expectations but missed on revenue by a wide margin, although CHK is up 3% as energy prices rise sharply on Middle East unrest.

- <b>Overall FX dealers continued to watch the dollar's inability to attract the traditional geopolitical safe haven bid. The situation in the Middle East has so far seen funds are repatriated back to home currencies (benefiting GBP and EUR) as opposed to moves into the dollar sanctuary</b>. EUR/USD was at session highs during mid-morning trading, popping above 1.3750. CAD was weaker and edging towards parity despite the higher oil prices. Dealers attributing the move to unconfirmed M&A chatter

***Looking Ahead***
- 11:00 (US) Fed to purchase $1.5-2.5B in Notes/Bonds
- 11:30 (US) Treasury to sell 4-Week Bills
- 12:00 (EU) ECB Trichet and member Quaden speak in Liege, Belgium
- 12:15 (EU) ECB Weber speaks at Zurich University
- 12:30 (US) Kansas City Fed's Hoenig speaks on Economy
- 13:00 (US) Treasury to sell $35B in 5-Year Notes
- 13:30 (BR) Brazil Jan Tax Collections (BRL): 80.0Be v 90.9B prior
- 13:30 (US) Fed's Plosser speaks on Economic Outlook in Alabama
- 13:30 (GE) German Bundestag holds Annual Media conference
- 14:00 (AR) Argentina Jan Trade Balance: No est v $241M prior
- 14:00 (AR) Argentina Jan Industrial Production M/M: No est v 5.6% prior; Y/Y: No est v 10.6% prior
- 16:00 (SK) South Korea Feb Consumer Confidence: No est v 108 prior
- 16:30 (US) API Weekly Energy Inventories

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