Stock Market Update - Friday, September 24, 2010 Durable Goods Positive Outlook Trending Up at Open

Stock Market Update
Friday, September 24, 2010

Latest News Headlines:

FDIC Regulators Close Florida Bank	US Regulators have shut down two more community banks. One in Florida, one in Washington, lifting to 127 the number of U.S. bank failures this year to date on a wave of loan defaults and economic distress.	The Federal Deposit Insurance Corp. on Friday took over Haven Trust Bank Florida of Ponte Vedra Beach, Fla., with $148.6 million in assets and $133.6 million in deposits. First Southern Bank, based in Boca Raton, Fla., agreed to assume the assets and deposits of the failed bank. The failure of Haven Trust Bank Florida is expected to cost the deposit insurance fund $31.9 million.North County Bank, Arlington, Washington. The cost is $72.8 million. To see the complete list of failed banks and credit unions visit: Online Consultancy Network™ Bank Failure List http://ocnww.blogspot.com/2010/09/bank-failure-list-update-september-1.html

Dow Jones 10,860.26 +197.84 (1.86%) S&P 500 1,148.67 +23.84 (2.12%) Nasdaq 2,381.22 +54.14 (2.33%)

Dow Jones 12:30 PM Averages: DJIA 10,839.59 UP 177.17

  30 INDUS     10,839.59 UP  177.17 OR    1.66%
  20 TRANSP     4,491.52 UP  108.59 OR    2.48%
  15 UTILS        400.30 UP    6.68 OR    1.70%
  65 STOCKS     3,741.08 UP   70.00 OR    1.91%



US STOCKS RISE ALMOST 200 POINTS - US DOLLAR FALLS

U.S. stocks climbed broadly Friday, putting the market on pace for its fourth-straight weekly gain as investors were encouraged by readings on housing and capital spending by businesses and German business sentiment. that pointed toward a stabilizing economy.

The Dow Jones Industrial Average jumped 164 points, or 1.5%, to 10825, in recent trading. All 30 of the measure's components rose, led by a 3.8% rise in Alcoa, a 3.6% advance in Hewlett-Packard, and a 2.8% gain in Caterpillar. The Dow is on track to extend its winning streak to a fourth week. In addition, it is up 8.1% for the month, on pace for its biggest September gain since 1939.

The Nasdaq Composite advanced 1.6% to 2364. The Standard & Poor's 500-stock index rose 1.7% to 1144, with all sectors in positive territory. The industrial and consumer-discretionary sectors led the gains.


The rally came despite a bigger-than-expected decline in demand for U.S. manufactured durable goods in August, which had been weighed down by steep drops in airplanes and cars. Investors were encouraged by gains in machinery, computers and fabricated-metal products, as well as an upward revision to July's durable-goods data.

The barometer of capital spending by businesses rose; orders for non-defense capital goods, excluding aircraft, increased by 4.1%.


US GOLD $1,300 AN OUNCE
Gold has reached $1,300 and silver $21.41 an ounce

Gold futures Friday rose above $1,300 an ounce for the first time as a weakening dollar continued to enhance the metal's appeal as an alternative asset.

The most actively traded gold contract, for December delivery, recently rose $2.50, or 0.2%, to $1,298.80 an ounce on the Comex division of the New York Mercantile Exchange. The contract set a record intraday high of $1,301.60 an ounce early in New York pit trading, and has settled at record highs in six of the last eight sessions.

The metal has outperformed many other assets through the financial crisis because of it's perceived safe-haven status. Gold is bought by some investors because it holds its value better than other assets during economic turmoil. The precious metal has climbed this year as confidence in the global economic recovery wavered, setting records in May, June and September.

Silver climbed to the highest price since 1980 as the dollar’s slump boosted demand for precious metals as alternative assets. Gold was little changed after rising to a record, topping $1,300 an ounce,
Silver jumped 26 percent this year as of yesterday, and gold was up 18 percent, outperforming global equities, Treasuries and most industrial metals.

Silver futures for December delivery rose 18.7 cents, or 0.9 percent, to $21.40 an ounce at 11:51 a.m. on the Comex in New York. Earlier, the price reached $21.48, the highest level for a most-active contract since October 1980.

Batteries and other industrial uses account for about half of silver demand, according to GFMS Ltd., a research company. Silver futures reached an all-time high of $50.35 in 1980, a year after the Hunt brothers tried to corner the market.


US DOLLAR FALLS
US Dollar Futures Index DXY, Day's Range: 79.60 - 80.26, Now 79.37 at 12:37 PM ET

The US Dollar Index broke through primary support at 80, signaling a decline with an initial target of 77.

The euro climbed against the dollar in response, rising to $1.3447. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, fell 0.7%. Treasurys also moved lower, lifting the yield on the 10-year to 2.60%. Crude-oil futures advanced above $75 a barrel and gold futures rose to a fresh record high about $1300 an ounce.


US AUGUST NEW-HOME SALES BELOW EXPECTATIONS
Sales of new homes in the U.S. came in below expectations during August, as consumers lacking a government tax incentive showed caution in the face of high unemployment. Sales were unchanged from the previous month, remaining at a seasonally adjusted annual rate of 288,000, the Commerce Department said Friday.

Economists surveyed by Dow Jones Newswires had estimated sales would climb in August, by 6.9% to 295,000. July sales fell 7.7%, revised from an originally reported 12.4% drop.

Year over year, sales in August were down by 28.9%. Unadjusted, sales in 2009 totaled 375,000, which was 71% off the peak in 2005, when the market bubble was full-blown.



DEMAND FOR US CAPITAL GOODS REBOUNDS

The Dow Jones Industrial Average (DJIA) is headed for an opening gain of nearly 100 points, while the S&P 500 Index (SPX) is set to jump about 13 points higher.

A smaller-than-expected decline in August's durable goods order combined with a surprise rise in a key German business sentiment index to provide a spark of hope on Wall Street.

US stocks were headed for a higher open Friday, although trading could be choppy with gold reaching a record high of $1,300 an ounce during pre-market hours. Dow Jones industrial average, S&P 500 and Nasdaq futures were all higher ahead of the opening bell.


CRUDE OIL FUTURES: Crude Up to $76.38 A Barrel
Light, sweet crude for November delivery traded 73 cents, or 1%, higher at $76.38 a barrel on the New York Mercantile Exchange. Brent crude on the ICE futures exchange traded 62 cents, or 0.8%, higher at $78.73 a barrel.


CREDIT UNION NEWS
US Government Seizes Three Major US Credit Unions

To see the complete list of failed banks and credit unions visit:

Online Consultancy Network™ Bank Failure List
http://ocnww.blogspot.com/2010/09/bank-failure-list-update-september-1.html

U.S. Bails Out Major Credit Unions

By MARK MAREMONT And VICTORIA MCGRANE

Two years after the peak of the financial crisis, the federal government swooped in to stabilize a crucial part of the credit-union sector battered by losses on subprime mortgages.

Regulators announced Friday a rescue of the nation's wholesale credit unions, underpinned by a federal guarantee valued at $30 billion or more. Wholesale unions don't deal with the general public but provide essential back-office services to thousands of other credit unions across the U.S. The majority of retail credit unions are sound, but they are exposed to the losses through the industry's insurance fund.

Friday's moves include the seizure of three wholesale credit unions, plus an unusual plan by government officials to manage $50 billion of troubled assets inherited from failed institutions. To help fund the rescue, the National Credit Union Administration plans to issue $30 billion to $35 billion in government-guaranteed bonds, backed by the shaky mortgage-related assets.

Officials said the plan won't cost taxpayers any money. Still, it marks the latest intervention by the U.S. government into a financial system weakened by the real-estate bust. Bad bets on mortgage-backed securities have now killed five of the nation's 27 wholesale credit unions since March 2009. The federal government, which now controls about 70% of the total assets at such credit unions, said the surviving institutions will be reined in so that they take fewer risks with their investments.

"Previously, we stabilized the system, and now we're resolving the problem and reforming the system," said Debbie Matz, chairman of the National Credit Union Administration, the U.S. agency overseeing credit unions.

Members United Corporate Federal Credit Union in Warrenville, Ill., Southwest Corporate Federal Credit Union of Plano, Texas, and Constitution Corporate Federal Credit Union, Wallingford, Conn., which had a total of $19.67 billion in assets as of July, were taken into conservatorship by federal regulators.

Wholesale credit unions, also known as corporate credit unions, invest money for retail credit unions and provide them with check clearing and other services. Since the start of 2008, 66 retail unions have failed, compared with more than 290 banks or savings institutions. Credit unions are member-owned cooperatives that act much like banks.

Read the entire article at the Wall Street Journal:

http://online.wsj.com/article/SB10001424052748703499604575512254063682236.html?mod=googlenews_wsj



BEFORE THE BELL:

Futures Rise Slightly Before Durable Goods Data

Stock futures pointed to a slightly positive open on Friday as Wall Street waits for durable goods and new home sales data out this morning.


Business spending and housing will be on the radar screen Friday in the form of August data on durable goods and new home sales.

At 8:30 a.m. the durables report arrives. The consensus is that total orders will show a 1% decline. Orders for durable goods, products such as autos and appliances designed to last three years or more, rose 0.3% in July from June, largely due to aircraft orders. In tomorrow’s report the markets will be keeping a close eye on non-defense capital goods excluding aircraft, a key gauge of future business investment. In July, that gauge declined 8% from a month earlier. That drop, the worst decline since January 2009.

At 10 a.m. we’ll get the latest read on new home sales last month. The consensus calls for an increase of 6.9% to an adjusted annual rate of 295,000 unites.

US Gold 1,300 an ounce
Gold has reached $1,300 and silver $21.37 an ounce
Dollar eases and gold hits peak as the US market prepares to open.



US DOLLAR SLIDES DOWN
US Dollar Futures Index DXY, Day's Range: 79.60 - 80.26, Now 79.43
The US Dollar Index broke through primary support at 80, signaling a decline with an initial target of 77.
The euro climbed against the dollar in response, rising to $1.3447. The U.S. Dollar Index, tracking the U.S. currency against a basket of six others, fell 0.7%. Treasurys also moved lower, lifting the yield on the 10-year to 2.60%. Crude-oil futures advanced above $75 a barrel and gold futures rose to a fresh record high about $1300 an ounce.


CHINA RARE METALS HOLD WORRIES U.S.
China's control of the rare-earth minerals market has U.S. military thinkers and policymakers worried about access to materials that are essential for 21st-century military and civilian technology.


Spot Price of Rare earth Elements Soar as much as 750% since Jan. 2010

Based on data reported by Metal-PagesTM and Asian MetalTM prices for individual rare earth oxide have risen between 22% and 750% since January, 2010, although the most significant rises have occurred since the June announcement on export quota reductions.

The largest percentage price increases have been for cerium and lanthanum, which most analysts believe is largely due to China's exporters limiting exports of the low valued light rare earths in favour of the high valued heavy rare earths, creating an artificial (and likely temporary) shortage of these light rare earths outside China.

There is also increased demand anticipated in the catalyst and battery markets for cerium and lanthanum, the latter linked to growing demand for hybrid and electric cars.

BEFORE THE BELL

Stocks set to slide as unemployment claims rise

Stock futures are falling after first-time claims for unemployment benefits rose last week. The Labor Department says there were 465,000 first-time requests for unemployment benefits last week, a jump of 12,000 from a week earlier. Economists predicted claims would be unchanged last week.

Futures were already under pressure Thursday before the disappointing jobs numbers. Futures had been falling after a report from Europe showed business activity in the 16 countries that use the euro fell last month.


CREDIT UNION NEWS US Credit Union Regulator Mulls Ways To Offload 'Legacy Assets' Debts
U.S. financial regulators continue to seek ways to sell assets they now hold form failed banks and institutions.

The federal regulator for credit unions, the National Credit Union Administration that supervises federal credit unions and insures the savings of 80 million account holders in federal credit unions as well as several state-chartered credit unions, is to discuss how to sell assets at its board meeting Friday.

Industry participants say the regulator could take the same path as another regulator, the Federal Deposit Insurance Corp., the FDIC, has taken.

The FDIC uses the securitization market to offload some of the loans it holds as a result of taking over failed banks. The loans are generally for commercial property.

In March, it sold the first such deal, a $1.8 billion bond backed by loans from Franklin Bank in Houston and Corus Bank in Chicago.

For more than a year, the FDIC also has been selling loans in a public-private partnership. In these deals, a buyer puts up 20% of the assets' value and tries to work out the loans by reducing the interest rate, extending the maturity, writing off some principal or getting buyers to put up equity. The FDIC, which retains 80% ownership, shares in any gains. In 2009, the FDIC sold $2.45 billion worth of loans, with an original book value of $5.7 billion.



FDIC To Vote On How to Liquidate Financial Companies Monday
Sept. 21, 2010
by Dave Clarke. Editing by Robert MacMillan
Reutors

U.S. banking regulators will vote on Monday on how the government would dismantle large financial companies on the verge of collapse.

The vote at a Federal Deposit Insurance Corp board meeting will be on a rule that would take effect immediately, but also would allow the agency to gather more comments.

FDIC Chairman Sheila Bair said last month that she wants to move quickly on this authority, arguing it is key to preventing future government bailouts of the financial industry.

Under the law, the government would designate certain financial companies as systemically important. That means the collapse one of those companies could threaten the financial system. The FDIC has the power to seize and break them up if they are heading toward collapse.

The FDIC is charged with liquidating these institutions much as it does with banks that take deposits. The new authority is part of an effort to end the notion that certain institutions are "too big to fail." As part of this new authority, large financial institutions must write living wills that regulators would use to dismantle them if they became insolvent.

At a closed forum on the issue last month, financial representatives raised concerns about how creditors would be treated during a liquidation.

The agency will also vote on whether to give federal protection to securitizations backed by home loans and other consumer debt if they meet higher standards and banks retain some of the risk associated with the products.

Leading Indicators Strengthen More than Expected

The Conference Board's Leading Indicators Index increased 0.3% in August, its strongest monthly increase since May. The Briefing.com consensus called for the index to increase 0.1%.

Since seven out of the ten index components are known prior to the release, the slight upward surprise will probably not generate much market reaction.


Canadian Market:
Toronto stocks closed higher Friday

According to preliminary data, the S&P/TSX Composite Index rose 103.07 points, or 0.85%, to 12204.86. Advances led declines 987 to 615. Trading volume was 488.40 million shares, up from Thursday's total of 464.00 million shares. The S&P/TSX 60 Index closed up 6.11, or 0.87%, to 706.85 points.


Canada April-July Budget Deficit C$7.7B Vs C$18.3B Year Ago

Toronto Indexes, Volume; 3 PM EDT Composite Up 101.29

 S&P/TSX Composite   12203.31  up  101.29  or 0.8%
 S&P/TSX 60 Index      706.49  up    5.75  or 0.8%
 Financials            175.55  up    1.62  or 0.9%
 Materials             390.30  up    1.45  or 0.4%
 Energy                273.87  up    2.70  or 1.0%
 Industrials           103.86  up    1.10  or 1.1%
 IT                     27.34  up    0.10  or 0.4%

   Volume          Friday    Thursday
   2-3                43.3M      45.9M
   9:30-3            396.5M     367.1M
Toronto Most Actives At 11:15 AM EDT

Horizons NYMEX Natural Gas Bull  10,968,713  3.99  off  0.28
iShares Cdn S&P/TSX 60           10,311,548 17.76  up   0.11
Kinross Gold                      5,737,038 19.30  off  0.35
Baja Mining                       5,231,149  0.94  up   0.09
Baffinland Iron Mines             4,909,011  1.02  up   0.01
RS Technologies                   3,777,165  0.03  unchanged
Gabriel Resources                 3,731,164  6.22  off  0.05
Starfield Resources               3,549,014  0.04  unchanged
Great Plains Exploration          3,468,501  0.46  up   0.01
Quadra FNX Mining                 2,985,043 14.52  up   0.76




South American Markets:
Buenos A   MERVAL          2571.13     48.37      1.91    +10.79
Caracas    General        66074.91    142.54      0.22    +19.97
Mexico C   IPC            33241.49    150.36      0.45     +3.49
Santiago   IPSA            4710.13    -20.73     -0.44    +31.52
Sao Paulo  BOVESPA        68097.74   -696.58     -1.01     -0.72


MEXICO:
Mexico Stocks Move Higher
Mexico Stocks Close Up, Peso Strength Limits Gains; IPC +0.6%

The local benchmark IPC index of most-traded issues rose 0.6%, or 189.62 points, to finish at 33,280.75. Volume was solid, with 184.3 million shares traded at a total value of 5.26 billion pesos ($418.9 million).  The IPC registered a 0.7% advancement on the week.

The peso was quoted in Mexico City closing stronger at MXN12.5510 to the dollar, compared with MXN12.5505 shortly after the open and MXN12.65 at Thursday's close.


BRAZIL:
Brazil's central bank bought U.S. dollars at an auction Friday for BRL1.7127 to the dollar, the bank said.

Before the auction, at 1533 GMT, the real was trading at BRL1.7135 to the dollar. Immediately following the auction, as of 1538 GMT, the real traded at BRL1.7130. Brazil's central bank has intervened in currency markets on a near-daily basis since May 2009 in an effort to prop up the dollar and build foreign reserves.
Brazilian government-run oil company Petrobras finalizes the terms for the world's largest share offer, setting its sights on turning the Latin American country into one of the world's top oil producers.

Brazilian Central Bank chief Henrique Meirelles says heavy dollar inflows could pose credit risk for the country's banking system. That is why Brazil has taken intervention measures in the forex market, he said.


ARGENTINA:

Argentina's Industrial Output Jumped 10%
Argentina's industrial production roared ahead in August as the country's booming economy continued to experience rising consumer demand for vehicles and other goods. Industrial output jumped 10% in August from the same month a year earlier and rose 2% from July, the national statistics institute, Indec, reported Friday.

Argentina Seen Reporting 9.5% Rise In July GDP
The national statistics agency, Indec, is expected to report that its monthly economic activity indicator--which encompasses most components of gross domestic product--rose 9.5% year-on-year in July, according to the median estimate of eight economists polled by Dow Jones Newswires. Indec is scheduled to publish the data at 3 p.m. EDT Friday.

Argentina's economy grew about 9.4% during the first six months of the year on the back of government spending, strong consumer demand, high commodity prices and a surge in exports to its largest trading partner Brazil.



The Central Bank of Argentina expects GDP to expand between 8.9% and 9.5% this year, after growing a meager 0.9% in 2009.


European Markets:

London     FTSE 100        5598.48     51.40      0.93     +3.43    Close
                FTSE 250       10539.00    112.98      1.08    +13.24    Close
Frankfurt  Xetra DAX       6298.30    113.59      1.84     +5.72    Close
Europe     STOXX 600        263.97      2.90      1.11     +3.97    Close
           STOXX 50        2539.03     23.60      0.94     -1.79    Close
           EuroSTOXX50     2792.75     54.14      1.98     -5.81    Close
Amsterdam  AEX              337.85      5.03      1.51     +0.75    Close
Athens     ASE             1514.26     12.39      0.82    -31.05    Close
Brussels   BEL-20          2601.61     31.22      1.21     +3.58    Close
Copenhagen OMXC20           419.28      3.19      0.77    +24.53    Close
Dublin     ISEQ            2698.83     13.34      0.50     -9.28    Close
Helsinki   OMX Helsinki    7016.63    100.02      1.45     +8.68    Close
Istanbul   IMKB-100       64241.48     48.88      0.08    +21.61    Close
Jo-burg    All Share      28714.77     -7.95     -0.03     +3.79    Sep 23
Lisbon     PSI General     2639.47     22.49      0.86     -9.05    Close
Madrid     IBEX 35        10727.60    226.10      2.15    -10.15    Close
Milan      FTSE MIB       20607.72    344.92      1.70    -11.36    Close
              FTSE Italia    21173.27    326.73      1.57    -10.48    Close
Oslo       OBX Stock        348.13      1.94      0.56     +2.60    Close
               All-Share        420.88      1.74      0.42     +0.19    Close
Prague     PX              1135.80      6.40      0.57     +1.66    Close
Russia     RTS             1491.62      2.95      0.20     +3.25    Close
Vienna     ATX             2533.37     36.91      1.48     +1.52    Close
Zurich     Swiss Mkt       6360.77     57.57      0.91     -2.83    Close


European markets are mixed prior to US market open and durable goods and new home sales data. European stocks weakened Friday as overall sentiment cools. the Euro and European markets remained fragile amid concerns about the outlook for growth, particularly in some of the outlying euro-zone economies.Germany has displayed the most positive sentiment.

Data from the Munich-based research institute showing that the business sentiment index for Germany rose to 106.8 in September from 106.7 in August. That defied consensus expectations of a slight drop in the index to 106.5.

At 1055 GMT, the Stoxx Europe 600 index was off 0.5% at 259.66, while London's FTSE 100 index was down 0.3% at 5528.98. In Paris, the CAC-40 index was 0.4% lower at 3696.80, and in Frankfurt the DAX index was 0.4% lower at 6158.83.

In the currency markets, the euro was lifted by the stronger-than-expected Ifo survey from Germany, offsetting recent negative data for the euro zone.

EUROPE GASOLINE MARGINS PLUNGE
Europe's gasoline crack spread has plunged to $2.20 a barrel, the lowest level since January 2009. With the market shifting toward winter production, refiners' profits are shrinking due to weaker demand and plentiful supplies in Europe.


GLOBAL WHEAT PRODUCTION DECLINES
Global wheat production for the 2010-11 crop marketing year was revised downward by 0.4% to 643 million metric tons due to the impact of severe drought in the Commonwealth of Independent States, figures from German grain trading house firm Toepfer International GmbH showed Friday.

Global wheat production for the year ending June 30, 2011 is now forecast 2.7 million tons lower than August's estimate and 37.4 million tons lower than the previous year's harvest. Downward revisions to Russian and Kazakhstani wheat forecasts were partly offset by higher Australian wheat forecasts, Toepfer's figures showed.

Wheat output within the European Union bloc of 27 member states was forecast at 134 million tons, slighlty higher than August's estimate but still 5 million tons below last year's harvest.

Falling numbers, were noted in Germany, Poland and the Czech Republic," Toepfer said. "German wheat is hardly being exported due to the poor quality and high prices.

The grain harvest in Germany was "greatly" delayed by the long period of rainfall in August and, in the parts of Northern Germany, the rainfall was heavy enough to make some of the wheat even unsuitable for use in feed

GERMANY:
Frankfurt  Xetra DAX       6298.30    113.59      1.84     +5.72    Close
German business confidence rises surprisingly in September, calming recent fears that the economic recovery is losing steam. The Ifo research institute's business sentiment index rises to 106.8, from 106.7 in August, beating expectations of a slight drop.

The Ifo index in Germany, a gauge of business sentiment, unexpectedly rose in September. That helped ease near-term worries over a possible growth slowdown in Europe's biggest economy.

German Wheat No Longer Exported
The European Union reported that the wheat harvest in Germany, the EU's second largest wheat producer, is forecast at 23 million tons compared to about 23.4 million tons in August's estimate and 25.2 million tons last year. German wheat is almost no longer being exported.


SPAIN:
Spanish Government Raises 2011 Unemployment Estimate To 19.3%

The Spanish government expects unemployment rates in 2011 to be higher than it previously thought, the country's Minance Minister Elena Salgado said Friday. The government has revised up its estimate for 2011 unemployment to 19.3% of the working population, up from an earlier estimate of 18.9%, she told journalists after the government approved its 2011 budget.


IRELAND:
Irish 10-year bond yields have soared to 6.6%, 4.3 percentage points


FRANCE:
Paris      CAC40           3782.48     71.87      1.94     -3.91    CloseFrench Unemployment On The Rise To 9.7% In Aug; Far From Recovery

The number of people in France actively seeking work, but not finding it, rose by 15,900, or 0.6%, in August to 2,692,500 from July, figures from the French State employment agency Pole d'Emploi and jobs statistics department Dares showed Friday.

Joblessness in August grew 4.9% from a year earlier as France's modest economic growth this year hasn't been strong enough to appreciably bring unemployment down, let along stop it in its tracks.

France's unemployment rate--joblessness as a percentage of the labor force--is published only quarterly and currently stands at 9.7%

The strongest increase in unemployment in August was among people over 50 years of age, with a 1% hike on the month. This is a trend that has accelerated of late as the government has intensified efforts to boost employment for the younger generation, leading companies to dispense with older employees. People over 50 encounter great difficulties finding jobs and tend to be pushed out of their jobs by employers to make way for less expensive, younger workers.

Even the young were affected in August. Joblessness among people under 25 years old rose 0.3% on the month, despite the government's initiatives.



Asian Pacific Markets:

Tokyo      Nikkei Stock    9471.67    -94.65     -0.99    -10.19    Close
                Nikkei 300       170.93     -1.48     -0.86     -7.64    Close
Hong Kong  Hang Seng      22119.43     71.72      0.33     +1.13    Close
Sydney     S&P/ASX 200     4601.87    -31.78     -0.69     -5.52    Close
                 All Ord         4651.51    -28.47     -0.61     -4.74    Close
DJ Pacific Pan-Asia         129.82     -0.04     -0.03     +5.50    Close
Bangkok    SET              951.90      4.80      0.51    +29.59    Close
Mumbai     Sensitive      20045.18    184.17      0.93    +14.77    Close
Jakarta    JSX Comp        3397.63     60.43      1.81    +34.06    Close
Kuala L    Composite       1451.19     -6.89     -0.47    +14.02    Close
Manila     PSE             4078.87     11.44      0.28    +33.62    Close
Saudi Arabia  TASI         6434.90     16.11      0.25     +5.12    Sep 21
Seoul      Kospi           1846.60     13.97      0.76     +9.74    Close
China      DJ CBN 600     24406.00     36.92      0.15    -15.99    Close
Shanghai   Composite       2591.55      2.84      0.11    -20.92    Sep 21
Shanghai   A Share         2714.96      2.92      0.11    -21.02    Sep 21
Shanghai   B Share          254.77      1.22      0.48     +0.94    Sep 21
Shenzhen   A Share         1198.12      0.11      0.01     -5.01    Sep 21
Shenzhen   B Share          726.58      7.06      0.98    +16.08    Sep 21
Singapore  Straits T       3092.68      9.55      0.31     +6.73    Close
Taipei     Weighted        8166.62    -35.92     -0.44     -0.26    Close
Wellington NZSX-50         3211.16    -16.87     -0.52     -0.59    Close



JAPAN AND CHINA'S SPAT POSES ECONOMIC RISKS

Japan's economy minister says growing diplomatic tensions with China pose risks to the economy. Earlier, Tokyo said it was looking into reports that China detained four Japanese workers and banned rare-earth exports to Japan.


Nikkei Turns Positive on Talk of Yen Intervention

Tokyo stocks turned positive on Friday after the dollar spiked higher against the yen on talk of intervention in the currency markets by Japanese authorities.The Nikkei stock average .N225 was 0.2 percent higher around 9,587 after earlier falling as far as 9,415.96.

The dollar rose to 85.40 yen JPY= from about 84.55 yen in a matter of minutes.

Japan's Nikkei Stock Average closed down 1.0%. South Korea's Kospi Composite was up 0.8%, while Hong Kong's Hang Seng Index was up 0.3%. Markets in China remained closed for the mid-autumn festival.

There was a sharp spike in the dollar against the yen earlier, raising fears that the Bank of Japan had decided to intervene. However, Japanese officials declined to comment on the move and the market quickly bought
back into the yen, negating the move.

Commodities
Crude Oil	76.46	- 0.04%
Natural Gas	3.88	-
Gasoline	1.95	-
Heating Oil	2.13	-
Gold	1295.83	+ 0.25%
Silver	21.42	+ 1.32%
Copper	3.62	+ 1.06%
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World Markets Snapshot:

Shanghai 2,591.55 +2.84 (0.11%) Nikkei 225 9,471.67 -94.65 (-0.99%) Hang Seng Index 22,119.43 +71.72 (0.33%) TSEC 8,166.62 -35.92 (-0.44%) FTSE 100 5,541.26 -5.82 (-0.10%) DJ EURO STOXX 50 2,738.18 -14.59 (-0.53%) CAC 40 3,711.58 +0.97 (0.03%) S&P TSX 12,101.79 -45.47 (-0.37%) S&P/ASX 200 4,601.90 -31.70 (-0.68%) BSE Sensex 20,045.18 +184.17 (0.93%)

Friday's US Economic Calendar:

8:30 a.m.
Aug Durable Goods Total Orders (expected -1%), Orders, Ex-Defense (previous +0.3%), Orders, Ex-Transportation (previous -3.8%)

10:00 a.m.
Aug New Residential Sales Overall Sales (expected 295K), Percent Change (expected +6.9%)

1:00 p.m.
Federal Reserve Bank of Richmond Pres Lacker speech in Kentucky

2:00 p.m.
Philadelphia Fed Pres Plosser speaks in Zurich

8:30 p.m.
Federal Reserve Chairman Bernanke speech at Princeton University

Conference Notes:
Chicago Fed and IMF's Annual International Banking Conference concludes
Treasury Secy Geithner speaks at U.S. Hispanic Chamber of Commerce convention

Market Summary Thursday, Sept. 23, 2010:

Stocks:

U.S. stock losses accelerated in the final hour of trading, as negative sentiment on Europe's economy and weak U.S. jobs data looked poised to knock the market into its second straight decline. The Dow had been on a roll for September, easily outpacing what had been expected to be a weak month, and analysts said it was likely due to come back a bit before the month ended. Despite a drop Wednesday and Thursday's declines, the Dow remains up 6.7% for the month.

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Treasurys:

Treasury prices changed little Thursday as investors booked profits after a four-day winning streak fueled by expectations that the Federal Reserve will have to step in with additional support for the economy. Long-term Treasurys had been rallying since late last week, especially since Tuesday afternoon, after the Fed highlighted the risk of deflation in its latest policy meeting statement and signaled that it is prepared to provide more monetary stimulus if needed. The 10-year yield, which moves inversely to its price, came down by some 16 basis points in the days following the Fed, prompting market participants to book some profits.

Investors are looking to sell consumer loan-backed bonds. TALF Bonbs valued at $940 million that they had bought a little over a year ago using low-cost loans from the Federal Reserve.The nine bonds, valued at between $11 million and $210 million, are triple-A-rated securities and are backed by auto and credit card loans,


Forex:

The euro fell against the dollar and yen Thursday after Portugal's opposition party said it would refuse to hammer out an early belt-tightening budget, adding to disappointing euro-zone economic data from Ireland and Germany that triggered fresh concern over the region's financial health. News that Portugal may not produce an early austerity budget weighed on the common currency, which threatened to dip below $1.33 before rallying slightly.