Daily Market Analysis

Do not be fooled by the large volumes. It was Expiration Friday and volumes are always higher on those days.Up Volumes starts to decrease towards the end of the session and Down Volumes were seen gaining at te same time. All in all, the TRIN is frightening to look at now. VIX futures are not backing to below 20 on friday indicating that volatility is still the main concern in the US markets.

Market Moving Factors:
• Large-cap tech loses support
• G7 intervenes in yen-dollar dynamic
• Japan raises nuclear safety alert level
• UN establishes no-fly zone over Libya

In Japan, the Nikkei closed +2.7% with exporters recording strong gains following announcement that the G7 will intervene to weaken the yen. Tokyo Electric Power co soared 19% to close limit up after falling 62% over the previous week.

In Hong Kong, the Hang Seng finished +0.1% with property stocks leading the index to a small gain. China Overseas Land soared 6.5% after the co announced a 66% rise in its 2010 net profit while Henderson Land jumped 4.0% after its 2010 net profit topped expectations.

In China, the Shanghai Composite settled +0.3% with machinery co Sany Heavy Industry gaining 7.6% after reporting its 2010 net income climbed 113%. Also seeing strength was Dongfang Electric (+1.6%) after seeing a plunge of more than 7% the previous day.

In India, the Sensex closed -1.5% as oil and gas stocks saw the heaviest selling. Oil refiner Reliance industries lost nearly 4% on reports that out at its KG-D6 basin were expected to drop 13%.

• European Markets Closing Prices
UK's FTSE: +0.4%
Germany's DAX: +0.1%
France's CAC: +0.6%
Spain's IBEX: +0.0%
Portugal's PSI: +1.3%

Market Internals for Friday 18 March, 2011

NYSE : Higher than avg volume @ 1905 mln, vs. 1033 mln
Advancers outpaced Decliners (adv/dec): 2135/827
New highs outpaced new lows (hi/lo): 63/54

NASDAQ : Higher than avg volume @ 2608 mln, vs. 1810 mln
Advancers outpaced Decliners (adv/dec): 1786/843
New lows outpaced new highs (hi/lo): 62/105


COMMODITIES & BONDS

Commodities AMC on Friday 18 March, 2011:

Light Crude (NYMEX) April 11 ($US per bbl.) : 101.07 (-0.35 -0.35%)
Natural Gas (NYMEX) April 11 ($US per mmbtu.) : 4.17 (+0.01 +0.24%)
Unleaded Gas (NYMEX) April 11 ($US per gal.) : 2.95 (-0.0012 -0.04%)

Gold (NYMEX) April 11 ($US per Troy oz.) : 1,416.10 (+11.90 0.85%)
Silver (NYMEX) May 11 ($US per Troy oz.) : 35.06 (+0.80 +2.34%)
Copper (NYMEX) May 11 ($US per lb.) : 4.34 (-0.005 -0.12%)

Corn (CBT) May 11 (cents per bu.) : 683.50 (+37.00 +5.72%)
Soyabeans (CBT) May 11 (cents per bu.) : 1,362.50 (+27.25 +2.04%)
Wheat (CBT) May 11 (cents per bu.) : 723.00 (+12.75 +1.80%)

Cocoa (NYMEX) May 11 ($ per metric ton) : 3,107.00 (-20.00 -0.64%)
Coffee (NYMEX) May 11 (cents per pound) : 277.45 (+1.25 +0.45%)
Sugar #11 (NYMEX) May 11 (cents per pound) : 27.60 (-0.11 -0.40%)


Treasury Yields AMC on Friday 18 March, 2011:
• 2 Year Note 0.61% +0.01
• 5 Year Note 1.96% +0.05
• 10 Year Note 3.28% +0.03
• 30 Year Bond 4.43% +0.01
2/30 Spread : 382bps (unch) ... 2/10 Spread : 267bps (+2)