Stock Market Update - Friday, October 8, 2010 Cautious Upward Trend Gold Rising

Stock Market Update
Friday, October 8, 2010

Latest US Economic News Headlines:

USA EQUITY INDEXES: (Oct. 8, 4:00 PM EDT)

Dow Jones 11,006.48 +57.90 (0.53%)
S&P 500    1,165.15 +7.09  (0.61%)
Nasdaq     2,401.91 +18.24 (0.77%)

EQUITY TRADING VOLUME:
                       Advancing       Declining
NYSE           708,007,460     229,765,362
AMEX              9,198,923         3,153,603
NASDAQ  1,279,264,814     644,602,373

Dow Jones 11:00 AM Averages: DJIA 10,973.02 UP 24.44
  30 INDUS     10,973.02 UP   24.44 OR    0.22%
  20 TRANSP     4,575.47 DN    1.17 OR    0.03%
  15 UTILS        402.30 UP    0.09 OR    0.02%
  65 STOCKS     3,789.20 UP    4.30 OR    0.11%


US DOLLAR FUTURES INDEX DXY, 4:30 PM EDT: 77.28  0.11 (0.14%)

US COMMODITY PRICES: (Oct. 8, 4:00 PM EDT)
Crude Oil     82.86     + 0.24%
Natural Gas     3.66     + 0.22%
Gasoline     2.15     -
Heating Oil     2.29     + 0.28%
Gold     1347.58     + 1.05%
Silver     23.22     + 3.15%
Copper     3.78     + 2.80%

SECTOR SUMMARY: (Oct 8, 4:00PM)
Basic Materials    +2.22%
Capital Goods     +2.20%
Conglomerates     +1.91%
Cons. Cyclical     +1.73%
Cons. Non-Cyclical+1.19%
Energy                +1.59%
Financial             +1.73%
Healthcare          +1.32%
Services             +1.60%
Technology        +1.68%
Transportation    +1.86%
Utilities               +1.04%


DOW REACHES 11,000 LEAD BY BLUE CHIPS
Stocks Rise, Commodities Surge, Gold Surges

US stocks rally Friday, with the Dow Jones Industrial Average ending above 11000 for the first time since early May. The dollar fell and stocks jumped to a high on the Dow over 11,017 Friday while Treasurys and gold reaped further gains as the final jobs report before the Nov. 2 midterm elections showed U.S. unemployment remains stubbornly high.

Blue-chip stocks edged up on Friday despite a grim jobs report as investors struggled to find a direction among the economic bleakness against the prospect of further action by the Federal Reserve to boost the economy.

The Dow was recently up 55 points, or 0.5%, to 11003, trading above 11000 for the first time since May 3, just days before the "flash crash." Alcoa led the blue-chip index higher, surging 6%, after kicking off earnings season late Thursday with results that exceeded analysts' expectations. The company also lifted its forecast for global aluminum demand in 2010.

Caterpillar jumped 2.2%, Disney rose 1.9% and Boeing gained 1.6%, powering the Dow's gains. Alcoa's 6.1% surge. The aluminum giant kicked off earnings season late Thursday by reporting results that exceeded analysts' expectations. The company also lifted its forecast for global aluminum demand in 2010.

The Standard & Poor's 500-stock index rose 0.5% to 1164 and the technology-heavy Nasdaq Composite rose 0.5% to 2396.

The meandering stock market came after the closely-watched non-farm payrolls report showed 95,000 workers lost their jobs in September, a steeper-than-expected decline that came as the government shed temporary census workers and other employees at the state and local level.


The private sector added 64,000 jobs, which was less than economists had expected and not enough to offset the big cuts in government workers.

Friday's report was a reminder that the U.S. labor market still remains in the doldrums 15 months after the recession officially ended. That could hurt Democrats in midterm elections Nov. 2 and increases the odds that the Fed will take new steps to jump-start the economy at its next meeting on Nov. 3. The September data was the last jobs report before these two key events.

"We're stuck with this chicken and the egg problem where companies don't want to hire until they see more demand, but the consumers won't spur that increased demand until they reach an equilibrium on their deleveraging process," said Ed Crotty, chief investment officer at Davidson Investment Advisors.

The unemployment rate, which is calculated with a separate household survey, remained unchanged at 9.6% in September, though it was lower than the expected increase to 9.7%.

"This report perpetuates the pattern we've been seeing for several months," said Jim Meyer, chief investment officer at Tower Bridge Advisors. "The economy is not getting a lot better and it's not getting a lot worse."
St. Louis Federal Reserve Bank President James Bullard told CNBC early Friday ahead of the jobs data that the Fed would face a difficult decision on whether to begin another round of asset purchases. "The economy has slowed, but it hasn't slowed so much," Bullard said, adding that he would go into the meeting "with an open mind."

In a separate report from the Commerce Department, inventories at U.S. wholesalers in August climbed more than expected. Inventories rose by 0.8% to a seasonally adjusted $409.43 billion. Economists surveyed by Dow Jones Newswires expected a gain of 0.5%.

Treasurys surged after the jobs number, with the yield on the benchmark 10-year note sinking to 2.35%. Gold rose to $1,344 an ounce, while oil registered modest gains.

In currencies, the dollar immediately sunk after the jobs report, but recovered most of its losses. The U.S. Dollar Index, which measures the greenback against a basket of six currencies, fell 0.3%. The dollar fell against the euro at $1.3928, while the yen strengthened.



DOLLAR DROPS - GOLD SOARS
U.S. Gold Prices $1,344 Spot Price, Silver $23.20

Engelhard Corp's base price for industrial gold bullion was $1344.43 per troy ounce, down $3.51 from previous. It's selling price for gold in fabricated form was $1445.26, down $3.77.

Handy & Harman's base price for gold was $1341.50 per troy ounce, down $3.50. The fabricated form price was $1448.82, down $3.78.


Gold To Trade Above $1,400 An Ounce In 2011
J.P. Morgan Chase & Co. (JPM) revised its outlook for metal prices in 2011 and now sees gold trading "consistently" above $1,400 per ounce next year compared with an average of $1,250 previously forecast.

The financial firm also projected silver to move in a range of $21.50 to $22.50 per ounce, up from $19.20 in its July report. Silver is now trading at $23.16 per ounce.

The upward revision in prices is due to expectations that "the probable escalation of quantitative easing and potential 'currency wars' will lead to a marked devaluation of paper assets," metal strategist Michael Jansen wrote in a report issued overnight.

Jansen expects copper to trade above $8,000 per metric ton and finish 2011 above $9,000. Copper is now trading at $3.77. He now expects aluminum to average at $2,338 per metric ton versus a previous average of $2,156.


MIXED SIGNALS STOCKS UNCHANGED

The dollar fell and stocks wobbled Friday while Treasurys and gold reaped further gains as the final jobs report before the Nov. 2 midterm elections showed U.S. unemployment remains stubbornly high.

The weaker-than-expected reading boosted the case for another round of stimulus at the next Federal Open Markets Committee meeting in early November. U.S. stocks were mixed in narrow ranges as the report reflected the complexity of interpreting a poor jobs number in light of promised action from the Federal Reserve to engage in additional quantitative easing.

  "This report perpetuates the pattern we've been seeing for several months," said Jim Meyer, chief investment officer at Tower Bridge Advisors. "The economy is not getting a lot better and it's not getting a lot worse. Whatever your opinion was yesterday shouldn't change today."

The Dow Jones Industrial Average was recently up 20 points at 10968, while the Standard & Poor's 500 was up 2 points at 1169 and Nasdaq Composite was 3 points lower to 2380. Futures had predicted a lower open for all three exchanges.

The dollar dropped to a fresh 15-year low against the yen, falling as low as Y81.93 and putting investors on alert for signs of Japanese intervention in currency markets to stem yen strength; analysts said they saw no sign of Japan in currency markets during early North American trading.

After gaining initially against the dollar, however, the euro quickly reversed course after Euro Group President Jean-Claude Juncker said the euro was too strong, not reflecting the region's economic fundamentals.

The Labor Department said Friday that nonfarm payrolls fell by 95,000 in September, as a gain of 64,000 private-sector jobs couldn't offset a larger loss of temporary census workers and state and local government jobs. The unemployment rate remained unchanged at 9.6%.

Economists surveyed by Dow Jones Newswires had forecast payrolls would fall by only 10,000 and the unemployment rate would edge slightly higher to 9.7%.


OIL AND GAS FUTURES:
Crude Rallies Above $83- $82.46
Crude Settles +99c At $82.66
Natural Gas moving up $3.66
Futures Settle Up 1% At $3.651/MMBtu

Futures Near Steady After Hitting Fresh One-Year Lows
Natural gas futures fluctuated near the unchanged mark Friday, as bargain buying supported the market after futures plunged to one-year lows.

Natural gas for November delivery rose 0.5 cent, to $3.622 a million British thermal units on the New York Mercantile Exchange. The benchmark contract fell to a new one-year low of $3.583/MMBtu in electronic activity early Friday.


TURKEY, CHINA END US DOLLAR TRADES
Turkey and China's leaders announced their two countries would end trading their own currencies for the US Dollar from now on, effectively excluding the U.S. dollar.


MIXED OPEN - DOLLAR FALLS
US Stocks Open Narrowly Mixed; DJIA Up 23, Alcoa Leads

A grim U.S. jobs picture sent stocks wobbling in and out of negative territory in early trading Friday, as investors struggled to balance the economic bleakness against the prospect of further action by the Federal Reserve to boost the economy.

The Dow Jones Industrial Average was up 23 points, or 0.2%, to 10972 to open the session. The Standard & Poor's 500-stock index added 1.88 points to 1159, while the Nasdaq Composite dropped 0.38 point to 2383.26.

The declines came after the closely-watched non-farm payrolls report showed 95,000 workers lost their jobs in September, a steeper-than-expected decline that came as the government shed temporary census workers and other employees at the state and local level.

The private sector added 64,000 jobs, which was less than economists had expected and not enough to offset the big cuts in government workers.

Friday's report was a reminder that the U.S. labor market remains in the doldrums, 15 months after the recession officially ended. That could hurt Democrats in midterm elections Nov. 2 and increases the odds that the Fed will take new steps to jump-start the economy at its next meeting on Nov. 3. The September data was the last jobs report before these two key events.

"This report perpetuates the pattern we've been seeing for several months," said Jim Meyer, chief investment officer at Tower Bridge Advisors. "The economy is not getting a lot better and it's not getting a lot worse."

The unemployment rate, which is calculated with a separate household survey, remained unchanged at 9.6% in September, though it was lower than the expected increase to 9.7%.

St. Louis Federal Reserve Bank President James Bullard told CNBC early Friday ahead of the jobs data that the Fed would face a difficult decision on whether to begin another round of asset purchases.

"The economy has slowed, but it hasn't slowed so much," Mr. Bullard said, adding that he would go into the meeting "with an open mind."

The stock market wobbled after the release of the jobs data, reflecting the difficulty of digesting an ugly jobs number even as the Fed hovers with promised help for the ailing economy.

Ben Halliburton, chief investment officer at Tradition Capital Management, said the weaker-than-expected jobs report increases the likelihood that the Federal Reserve will announce additional quantitative easing measures in early November. But he wasn't certain whether any Fed moves would truly help the weak labor market.

"It's the question of do you really need more high-powered money and liquidity or is the lack of growth and lack of employment a different structural issue that can't be solved through monetary policy?" Mr. Halliburton said. He said the first round of easing didn't seem to help, "so why would QE2 generate jobs?" he asked, referring to a second round of easing.

John Brady, senior vice president at MF Global, said he found solace in the fact that the news wasn't as bad as it could have been. "The unemployment rate staying at 9.6% offers a bit of a sigh of relief," he said.

Treasurys surged after the jobs number, with the yield on the benchmark 10-year note sinking to 2.358%. Gold edged up to just under $1,340 an ounce, while oil put on modest gains.

In currencies, the dollar immediately sunk after the jobs report, but recovered most of its losses. The U.S. Dollar Index, which measures the greenback against a basket of six currencies, was 0.3% higher. The dollar was flat against the euro at $1.3914, while the yen strengthened to trade at 81.84 yen to the dollar.

The currency gyrations come ahead of weekend meetings of the World Bank and International Monetary Fund in Washington.

Friday also marked the unofficial start to earnings season, with Alcoa gaining 4.7% to lead the Dow after it lifted its forecast for demand in reporting third-quarter earnings late Thursday.

Alcoa, one of the 30 Dow industrials, reported a roughly 21% drop in third-quarter profit, but still beat market expectations, and also lifted its forecast for global aluminum demand in 2010.

Also in focus, Micron Technology shed 3% in premarket trading after the chip maker missed consensus earnings expectations late Thursday.

The moves came after U.S. stocks finished mostly lower on Thursday, with the Dow down 0.2%. In overnight activity, the U.K.'s FTSE 100 index fell 0.4% in late intraday trading. In Asia, Japan's Nikkei Stock Average closed down 1%, while the Shanghai Composite Index soared 3.1% as trading resumed after a week-long holiday.


US DOLLAR FALLS ON JOBS DATA
US Stock Turn Positive Following Jobs Data

U.S. stocks edged up into positive territory Friday morning after the U.S. economy suffered deep job losses last month, a grim picture that nonetheless buoyed investors gearing up for action by the Federal Reserve.

Dow Jones Industrial Average futures edged up five points to 10916 recently, while Standard & Poor's 500 futures added one point to 1158 and Nasdaq 100 futures gained four points to 2018. Prior to the jobs data, Dow futures had been off 36 points, while S&P 500 futures slipped four points and Nasdaq futures shed seven points. Changes in stock futures do not always accurately predict early stock moves after the open.

The closely-watched September non-farm payrolls report showed small gains in private sector hiring, which failed to offset big cuts in government workers. The private sector added only 64,000 jobs in September, with overall non-farm payrolls falling by 95,000 as temporary census workers were let go and state and local governments also cut employment.

Economists had expected non-farm payrolls to fall by a smaller 10,000, while private-sector jobs gained by 85,000.


CORN CROP REPORT SHAKES AGRICULTURE SECTOR

US forecasters slash estimates for the U.S. corn harvest, causing futures prices to surge while igniting shares of many agriculture companies. Tractor makers such as Deere and seed and fertilizer companies such as Monsanto get a boost from report.



BANK OF AMERICA HALTS ALL FORECLOSURES

Bank of America is placing a moratorium on all foreclosure proceedings and sales across the U.S. due to mounting political pressure on large U.S. banks to examine foreclosure-documentation problems.



U.S. CONTRACTORS EMPLOYED TALIBAN
A Senate panel has found evidence that the mostly Afghan force of private security guards the U.S. military depends on to protect supply convoys and bases in Afghanistan is rife with criminals, drug users and insurgents.



BEFORE THE BELL:


US LOST ALMOST 100,000 MORE JOBS - 14.8 MILLION UN-EMPLOYED IN THE USA

Employers in US Cut More Jobs Than Forecast in September
US Economy Loses 95K Jobs Due To Government Layoffs Concern Rebound Faltering

A wave of government layoffs last month outpaced weak hiring in the private sector, pushing down the nation's payrolls by a net total of 95,000 jobs.

The Labor Department says the unemployment rate held at 9.6 percent. The jobless rate has now topped 9.5 percent for 14 straight months, the longest stretch since the 1930s.

The private sector added 64,000 jobs, the weakest showing since June. Local governments cut 76,000 jobs last month, most of them in education. That's the largest cut by local governments in 28 years. And, 77,000 temporary census jobs ended in September.

Nearly 14.8 million people were unemployed last month. That's almost 100,000 fewer than in August.

Companies likely added a small number of jobs last month, but hardly enough to bring much relief to the nation's 15 million unemployed.

On Friday, the Labor Department will issue the final monthly jobs report before the midterm congressional elections. The report is likely to leave President Barack Obama in a precarious position: Democratic members of Congress will face voters with unemployment likely above 9.5 percent.

Economists estimate private employers added a net total of 75,000 jobs in September. But they expect that number to be offset by the loss of an equal number of temporary Census jobs. Overall, economists expect no change in the nation's total payrolls.

The unemployment rate is projected to rise to 9.7 percent from 9.6 percent, according to a survey of economists by Thomson Reuters, as more people look for work. People who are out of work aren't counted as unemployed until they actively look for a job.

Economists see few signs that the jobs situation will improve anytime soon.

"There's not much growth going on in the economy right now, so that doesn't give employers much reason for hiring," said Nigel Gault, an economist at IHS Global Insight.

Gault said he expects the pace of job creation to remain similarly weak for the rest of this year. Some economists say the unemployment rate could top 10 percent by next year.

The economy expanded at a scant 1.7 percent annual rate in the April-June quarter. Most analysts think growth was similarly weak in the July-September quarter.

Since the recession ended in June 2009, the economy has grown 3 percent, according to economists at Deutsche Bank. That's less than half the average 6.5 percent pace in postwar recoveries.

Some encouraging signs did emerge in government reports Thursday. For the fourth time in five weeks, fewer people applied for unemployment benefits. The number who did so fell to the lowest level since July.
And job openings rose in August for the second-straight month, to 3.2 million.

But neither figure is strong enough to signal broad gains in job creation. Employers advertised 4.4 million job openings in December 2007, when the recession began.

"The data that we're seeing is still consistent with a very slow jobs recovery," said Michelle Meyer, an economist at Bank of America Merrill Lynch.

Weak job growth will likely force the Federal Reserve to take further steps to boost the economy. Most economists expect the Fed to act next month to buy government debt to try to lower interest rates and spur more borrowing.

The unemployment rate can rise even when the economy is adding jobs — if the jobs aren't enough to keep up with the growing population. Private-sector job creation in September will likely to fall below the 125,000 net new jobs needed just to keep up with population growth. That growth stems from young people seeking their first jobs and new immigrants looking for work.

Even more jobs will be needed to absorb many of the 1.1 million Americans who have stopped looking for work and won't resume their search until hiring picks up.

The Federal Reserve Bank of San Francisco estimates that employers would have to create as many as 300,000 net jobs each month to reduce the unemployment rate to 8 percent within two years. That figure takes into account both population growth and the return of some discouraged job seekers.




FED SAYS MORE US EASING TOUGH CALL
FOREX-Dollar rises on Bullard remarks; payrolls awaited

All eyes on U.S. payrolls at 1230 GMT

The dollar rose on Friday after a U.S. policymaker played down the chances of aggressive monetary easing, prompting investors to take some profit on the greenback's recent falls before key U.S. jobs data.

St. Louis Fed chief James Bullard, a voting member this year on the U.S. Federal Reserve's rate-setting committee, told CNBC that policymakers face a tough decision at next month's policy meeting as the economy has slowed but is still bumping along.

Market speculation the Fed will resume quantitative easing when it meets on Nov. 2-3 to shore up the economy has increased. But Bullard did not rule this out, saying more help from policy may be needed to push up inflation.

 "Bullard is confirming himself as an incrementalist who is not in the very aggressive easing camp," said Chris Turner, head of FX strategy at ING.

"The reaction to the comments was very much a function of positioning - we've had an almost uninterrupted dollar decline and going into the payrolls numbers there is a risk of short-term position squaring in the dollar".

The last reading of U.S. payrolls before the U.S. mid-term elections will be used by the market as a gauge of how aggressive U.S. easing could be. Payrolls data, due at 1230 GMT, is forecast to be flat in September, with the unemployment rate seen edging up to 9.7 percent from 9.6 percent.

At 1121 GMT, the euro was down 0.2 percent at $1.3896, knocked off an eight-month high of $1.4030 hit on the EBS trading platform on Thursday. It hit a session low of $1.3843 after the Bullard comments.

Traders said options expiries at $1.3910 and $1.3950 were due later in the day. The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2 percent at 77.544 .DXY, moving above an 8-1/2 month low of 76.906 on Thursday. It has support at 76.60, the index low for 2010 hit in mid-January.






Microsoft Merger Speculation Boosts Adobe 
Speculation that Microsoft plans to work more closely with Adobe or even buy the company has caused the share price of Adobe Systems to rise by 12 per cent.





COMMODITIES DOWN - Before the Bell
Japan, European and US stock-market futures dropped on Friday as investors awaited employment data for September, with Alcoa Inc. in focus after it kicked off earnings season by lifting its forecast for demand. Futures on the Dow Jones Industrial Average fell 35 points to 10877. Crude oil is trading at $80.86, Gold is at $1,329 and falling before the bell as the US Dollar is rising before the bell. 




JOBS AND CURRENCIES PUT INVESTORS ON EDGE
Wall Street Futures Mixed Ahead of US Jobs Report

Investors pulled back from riskier assets on Friday, selling stocks and buying the dollar, as they approached a key test of U.S. economic recovery and a potentially volatile weekend of global currency talks.
Wall Street also looked set to open flat to lower pending the release of jobs data.

U.S. monthly non-farm payrolls data for September was at 1230 GMT, providing a snapshot of how the stumbling U.S. economy is impacting jobs -- and with them consumer confidence and likely spending patterns.

A weak number could also push the U.S. Federal Reserve towards further quantitative easing, essentially printing money to prime the economic pump.

Futures on major U.S. stock indices point to lower opening on Friday ahead of key U.S. monthly non-farm payrolls and unemployment data from the government.

Futures on the S&P 500 are down 0.37 percent, futures on the Dow Jones Industrial Average are down 0.36 percent and Nasdaq100 futures are down 0.45 percent.

The median forecast for the non-farm payrolls is a gain of 3,000 jobs in September, versus a loss of 54,000 in the previous month. Economists forecast unemployment rate to rise to 9.7 percent against 9.6 percent in August.

Non-farm employment fell by 54,000 in August as 114,000 temporary 2010 Census workers were let go by the federal government. The unemployment rate rose to 9.6 percent in August, the highest level since May, from 9.5 percent in July.

 International Monetary Fund and World Bank meetings in Washington this weekend are expected to be dominated by the potential for a "currency war" over differing exchange policies, including the potential for QE to weaken the dollar.

US Billionaire investor George Soros said he shared concerns about a “currency war”. China's yuan on Friday hit its highest level since Beijing vowed to loosen its grip on the unit in June, as economic powers gather in Washington.



IMF CHIEF - CURRENCY WAR REAL THREAT 
Global Currency Wars Pose "a real threat" to Economic Recovery

International Monetary Fund Managing Director, Dominique Strauss-Kahn, has warned. In an interview with the BBC, he said currency disputes showed countries were not co-operating as well as they had during the financial crisis.

In recent weeks both the US and Europe have led criticism of China over its undervalued yuan. Japan has been forced to intervene to curb rises in the yen. Separately, Indian Finance Minister Pranab Mukherjee on Thursday warned that imbalances in the global economy have become "not sustainable". But he urged major economies to shun confrontation to avoid a feared currency war.

Mr Strauss-Kahn told the BBC that there were signs that countries were trying to use their currencies "as a weapon". "The willingness of the countries to work together, which was very strong at the climax of the [financial] crisis is not as strong today," he said."'Currency war' might be too strong, but the fact the countries want to find domestic solutions to a global problem is really a threat to the recovery."

He added that China would have to revalue the yuan in order for the country's economy to reduce its reliance on foreign export markets.Mr Strauss-Kahn agreed that China should act to raise the value of its currency "the sooner the better". But he warned against placing too much importance on it.

"We have been saying for years that the [yuan] was undervalued," he said. "[China] will go in this direction - the question is the speed. Certainly they can go faster than they are today. "On the other hand we shouldn't believe that all the imbalances in the economy today will be solved if the value of yuan was changed."

The US has been at the forefront of criticism of China's currency policy. It claims that China is keeping its currency artificially low in order to aid its exporters, hurting US competitors. On Thursday, Washington reiterated that China needed to take steps relating to its currency.

"We are watching and evaluating the measures and the steps that they take. We continue to believe that China must take steps," White House spokesman Robert Gibbs said.


ECB CALLS FOR CURRENCY TALKS
European Central Bank Calls For Currency Talks

European Central Bank President Jean-Claude Trichet said currency levels should reflect economic fundamentals and that leaders of major nations will have the opportunity to discuss market tensions at meetings this weekend of the International Monetary Fund in Washington.

Earlier in the day the central bank for the 16-nation euro zone said its policy board had decided to keep its benchmark interest rates unchanged.

"More than ever, I think that exchange rates should reflect economic fundamentals," Trichet said at a news conference after the policy meeting. "Excess volatility... [has] adverse implications for economic and financial
stability."

Leaders from the countries with the world's major currencies "will have occasion to exchange views on that" at the IMF meetings this weekend, he said.

Addressing suggestions that the Chinese currency should be rising more quickly, he said: "It is very important that the exchange rate policy reform announced by China be implemented... and allow for the gradual appreciation of the renminbi."

The euro-zone's economic recovery should proceed at a moderate speed, with risk and uncertainty "still prevailing," Trichet added. Trichet's comments on currencies came amid growing discord among governments
of major economies over currency exchange rates. Europe and the U.S. believe that China and other Asian countries have steered policies to hold down their currencies and make their exporters more competitive.

The ECB president also took issue with the sharp fall in the U.S. dollar, which also serves to assist U.S. exporters, saying that a strong dollar is in the U.S.'s interest.

In contrast with many central banks in some of the world's developed economies, notably the U.S. and Japan, the ECB until recently has been gradually withdrawing its extraordinary, post-crisis support to the banking system.

Danske Bank economist Frank Hansen calculates that the euro's appreciation in currency markets so far could chip half a percentage point off the euro-zone's gross domestic product in 2011.



COMMERCIAL SPENDING - TECH SECTOR CONCERNS
Tech Spending Worries Rise After Warnings

Concerns about a slowdown in technology spending are rising ahead of the third-quarter earnings period, with indications growing that tech is feeling pressure from businesses and consumers.

Tech companies posted record second-quarter results, benefiting from a sharp rebound in demand following the recession. But many have warned of consumer weakness in recent weeks, and concerns also have risen that business spending, which was helping offset consumer weakness, has started to slow. The only sub-sector that is showing a sign of growth is the tech security sector.

"Companies are readjusting to this outlook of a less robust economic recovery all over the world," said Roger Kay, president of Endpoint Technologies, which tracks the tech sector. "There's a general sense of caution, and that mood's going to carry on." The question is "What's there to change it?'"

Many tech companies have cut their guidance in recent weeks, including chip makers Intel Corp. (INTC) and Advanced Micro Devices Inc. (AMD), and other companies, like Cisco Systems Inc. (CSCO), have warned that a return to normal economic conditions would take longer than previously expected.

Adding to worries Thursday were weaker-than-expected third-quarter earnings projections from Samsung Electronics Co. (SSNHY, 005930.SE), the world's largest technology company by sales. Although the company didn't explain the estimates in detail, the weakness likely stemmed from sharp price erosions for products such as flat panels.

Also, Equinix Inc. (EQIX)--a telecommunications company that offers hosting services for networks and Internet connectivity--trimmed its third-quarter and full-year revenue targets on Tuesday, saying it lost more customers in North America than expected and faced greater-than-expected discounting to close contract renewals.

Equinix's warning sparked a sell-off in stocks exposed to data-management and cloud computing and raised worries that business spending, which had been holding up, could be seeing some weakness.

Tech stocks have outperformed the broader market in recent weeks, fueled by M&A activity. In addition, most of the stocks had priced in a weaker third quarter ahead of the various guidance cuts, leading investors to scoop up the cheap stocks when those warnings materialized.

But that momentum could wane if guidance for the fourth quarter is below normal seasonality, and if 2011 continues to look weak.


US FORCED HEALTH CARE AND TAX UPHELD
US Judge Upholds Federal Health Care Law

A Michigan federal judge on Thursday upheld the constitutionality of a key provision of the recently enacted federal health care law that requires individuals to maintain health-insurance coverage or pay a penalty.

The ruling is the first on the constitutionality of the law, which was signed into law by President Barack Obama in March.

U.S. District Court Judge George Steeh in Detroit rejected arguments by a conservative legal group and four individuals that Congress lacked the constitutional authority to require people to purchase health insurance.

In a 20-page opinion, Steeh also ruled that the penalty provision wasn't an unconstitutional tax.

The health care law is facing several other legal challenges, including a lawsuit by a coalition of several state attorneys general.


Trade Deficit with China Costing the U.S. 500k Jobs

The widening U.S. trade deficit with China will displace over 500,000 jobs in the U.S. in 2010, according to Robert E. Scott of the Economic Policy Institute.

http://www.ibtimes.com/articles/69697/20101007/trade-deficit-with-china-costing-the-u-s-500k-jobs.htm


Hybrid Gold Fund Takes Off

A hybrid gold exchange-traded note which invests in the S&P 500 and gold futures was off to a fast start Thursday.

The UBS E-TRACS S&P 500 Gold Hedged Index ETN (SPGH) was up 5.11% to $33.53 per share in early Thursday morning trading. An ETN is much like an exchange-traded fund except it represents notes from the underlying issuer instead of shares of stock.

SPGH came out earlier this year and has returned better-than 23% so far in 2010. It has a different sort of mix than straight gold funds. SPGH follows an index designed to hedge against declines in the U.S. dollar, according to the E-TRACS site.

The PowerShares DB U.S. Dollar Index Bullish (UUP) was down 0.04% at $22.44 per share at 11:38 eastern time.  The U.S. Dollar Index Bearish (UDN) was up by 0.04% to $27.48. By comparisons, the SPDR S&P 500 (SPY) was trading down by 0.13% at $115.89 per share. At the same time, the SPDR Gold (GLD) was down 1.01% to $130.48 per share.


US CITIES FACE ECONOMIC STRESS
Harrisburg, Pa., City Council Seeks Bankruptcy Attorneys

The city council of Harrisburg, Pennsylvania, on Friday advertised for attorneys to offer counsel on bankruptcy and the state's oversight program for distressed municipalities.

Mayor Linda Thompson has already applied for the state program, known as Act 47. But she is opposed to the city filing for bankruptcy, which some city politicians want considered.

"Despite the administration's declaration last week that the city is filing an application for the Commonwealth's Act 47 program, many of my colleagues and I are still advocating that City Council retain legal counsel to consider the benefits and burdens to our city of filing for municipal bankruptcy under Chapter Nine," said Councilman Brad Koplinski in a statement. "It is [a] tool to help municipalities, one that may have distinct benefits for Harrisburg. To not take a prudent look at municipal bankruptcy as an option would be foolish." 

"The City Administration has requested Act 47 status in an effort to avoid bankruptcy," said Thompson's spokesman, Chuck Ardo. "An outside counsel will not enable Council to change that reality."

The council's request for proposals asks attorneys to submit their proposals and statements of qualifications by 4 p.m. EDT Oct. 19.  Public interviews of candidates would occur the following week.

The advertisements appeared Friday in the Legal Intelligencer and the Harrisburg Patriot-News.

Harrisburg is the capital of the Commonwealth of Pennsylvania

Harrisburg has played a notable role in American history during the Westward Migration, the American Civil War, and the Industrial Revolution. During part of the 19th century, the building of the Pennsylvania Canal and later the Pennsylvania Railroad allowed Harrisburg to become one of the most industrialized cities in the Northeastern United States.

Harrisburg had been inhabited by Native Americans as early as 3000 BC.

The first European contact with Native Americans in Pennsylvania was made by the Englishman, Captain John Smith, who journeyed from Virginia up the Susquehanna River in 1608 and visited with the Susquehanna tribe.

In 1719, John Harris, Sr., an English trader, settled here and 14 years later secured grants of 800 acres (3.2 km2) in this vicinity. In 1785, John Harris, Jr. made plans to lay out a town on his father's land, which he named Harrisburg. In the spring of 1785, the town was formally surveyed by William Maclay, who was a son-in-law of John Harris, Sr. In 1791, Harrisburg became incorporated and was named the Pennsylvania state capital in October 1812.



====================


Canadian Market: 

Canadian Stock & Bond Markets will be closed Monday for the Thanksgiving Day holiday. 

Toronto Stocks Close Higher

Toronto stocks closed higher Friday, led by Agrium and Barrick Gold, as shares of commodity producers rallied on rising futures prices after the U.S. dollar softened on weak jobs data.

The S&P/TSX Composite Index rose 89.66 points, or 0.7%, to 12535.59. Advances exceeded declines 1,022 to 572. Trading volume was 407.1 million shares, down from Thursday's total of 521.7 million shares. The S&P/TSX 60 Index closed up 5.09 points, or 0.7%, to 725.41

 

COMMODITIES DRIVE CANADIAN STOCKS HIGHER
Toronto Stocks Up At Midday

The stock market was higher at midday Friday, led by fertilizer and commodity producers, as commodities rallied on a weaker U.S. dollar and unexpectedly revised lower U.S. corn crop estimates. Agrium Inc. led advancers, up 7%.

At 11:45 a.m. EDT (1545 GMT), the S&P/TSX Composite Index was up 60.67 points, or 0.5%, at 12506.60. Advances led declines 816 to 497. Trading volume was 180.4 million shares. The S&P/TSX 60 Index was up 3.26 points, or 0.5%, to 723.58.


Canada Dollar Moves Higher

The Canadian dollar was higher against the U.S. dollar late Friday in choppy trading after disappointing jobs data on both sides of the border.

The U.S. dollar was at C$1.0134 at 3:00 p.m. EDT (1900 GMT), from C$1.0223 at 8:00 a.m. EDT (1200 GMT) and C$1.0182 late Thursday.

The Canadian dollar lost some ground early Friday, after Canada's jobs data showed a net loss of 6,600 jobs, missing expectations for a net increase of 10,000 jobs. The Canadian dollar did manage to make some gains against the greenback later in Friday's session.

            USD/CAD   1.0134  1.0223  1.0182
            EUR/CAD   1.4098  1.4188  1.4185
            CAD/JPY    81.05   80.49   80.92


CANADA LOSES 6,600 JOBS IN SEPTEMBER
The Canadian economy sheds 6,600 net jobs in September after gains in August, but the unemployment rate edges down by 0.1 percentage points to 8.0% as fewer young workers enter the labor force.
 

Toronto Indexes, Volume; 4:15 PM EDT Composite Up 89.66

 S&P/TSX Composite   12535.59  up   89.66  or 0.7%
 S&P/TSX 60 Index      725.41  up    5.09  or 0.7%
 Financials            177.30  off   0.64  or 0.4%
 Materials             398.92  up    6.92  or 1.8%
 Energy                292.11  up    3.80  or 1.3%
 Industrials           106.49  up    0.58  or 0.5%
 IT                     28.12  up    0.28  or 1.0%

   Volume             Friday         Thursday
   3-4:15              81.7M           77.3M
   9:30-4:15          407.1M          521.8M



Toronto Most Actives At 2:15 PM EDT

.Eastern Platinum        9,106,696   1.52 up  0.06
Horizons NYMEX Gas Bull 6,470,117   3.25 up  0.03
Western Coal            6,469,466   6.81 up  0.12
Bankers Petroleum       5,349,053   6.94 off 0.16
Kinross Gold            4,738,045  19.24 up  0.01
iShares S&P/TSX 60      4,486,464  18.17 up  0.10
Manulife                4,220,679  12.41 off 0.18
Gran Tierra             3,839,312   7.69 up  0.19
Bombardier              3,343,096   5.23 off 0.04
Andean Resources        3,200,806   6.30 up  0.09




South American Markets: 

BRAZIL:

Magnitude 5.0 Earthquake In Central Brazil

BRASILIA An earthquake registering a 5.0 magnitude occurred in central Brazil Friday afternoon near the border of the Federal District and the state of Tocantins, the U.S. Geological Survey reported.

The USGS agency said the tremor occurred at 2016 GMT. The epicenter was located 225 kilometers north of the nation's capital, Brasilia, at a depth 14.8 kilometers.

Workers in some government buildings were directed to evacuate their workplaces and local authorities advised city residents to leave buildings if they suspected any structural damage from the event.

There were no immediate reports of injuries from the event. Residents and office workers in Brasilia, however, reported small disturbances, including shifting of furniture and books trembling on shelves.

Local authorities advised residents to evacuate buildings if they suspected any structural damage from the event.


BRAZIL STOCKS UP ON GROWTH OUTLOOK
Brazil Stocks Open Higher On Outlook For Continued Growth

Brazilian stocks opened higher Friday on the outlook Latin America's biggest economy is still posting healthy growth after industrial employment climbed.

The benchmark Ibovespa stock index opened at 70,228 points, up 0.44% from Thursday's close of 69,918.

Industrial employment in August climbed 0.1% from July, for a 5.2% jump from the year-earlier period. It was the seventh consecutive month of gains on the year and pushed the 12-month rate to positive for the first time since March 2009, the national statistics agency said Friday.

Brazil has shown "strong fundamentals," BTG Pactual strategist Carlos Sequeira wrote in a note to clients before the industrial employment data came out.

  "With Petro's offering behind us (and the electoral process ending on October 31), we believe markets will re-focus on the country's very solid economic fundamentals," he wrote in the note, referring to government-controlled energy giant Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras. "We are adding to sectors more exposed to Brazil's domestic economy" such as retail, real estate and banks.

Brazil failed to elect a president in the first round of elections Oct. 3rd. Voters will return to the polls Oct. 31.

Brookfield Incorporacoes SA (BISA3.BR), a Brazilian homebuilder, jumped 1.66% to 9.18 Brazilian reals after reporting preliminary third-quarter contracted sales of BRL824 million. That's a 32% increase from the year-earlier period, bringing the total so far this year to BRL2.6 billion.

Credit- and debit-card payment processors Cielo SA (CIEL3.BR) and Redecard SA (RDCD3.BR) jumped. Cielo climbed 1.15% to BRL14.92, while Redecard added 1.74% to BRL25.70.

Brazilian blue chips were mixed in early trading.

  Usinas Siderurgicas de Minas Gerais (USIM5.BR, USNZY), Brazil's biggest maker of flat steel for the automotive industry, added 0.525% to 21.39, while rival Cia. Siderurgica Nacional (CSNA3.BR, SID) jumped 1.27% to 28.79.

  Vale SA (VALE5.BR, VALE), the world's biggest iron-ore producer, slid 0.13% to BRL47.43. Vale had its ADRs downgraded by UBS to neutral from buy Friday, as the bank cited recent stock performance, an expected increase in Brazilian mining royalties next year and "political noise."

  Petrobras edged higher 0.20% to BRL25.35. Telephone giant Tele Norte Leste SA (TNE, TNLP4.BR), or Oi, slipped 0.28% to BRL24.63. Minas Gerais utility Cemig (CIG, CMIG4.BR) lost 0.36% to BRL28.05.

Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, was little changed, rising 0.09% to BRL11.64.



Brazil Real Closes Stronger As Inflows Overwhelm Bank Measures

Brazil's real closed Friday at its strongest level in more than two years on speculation low global interest rates will continue to attract money to Latin America's biggest economy, overwhelming government measures to stifle the currency's gain.

  The real closed at BRL1.6662 to the dollar, the strongest since Sept. 2, 2008. The currency opened weaker, trading for as much as BRL1.6900 per dollar after the government closed loopholes on taxes on foreign investment.

  "The macro outlook is dominating the market," said Paulo Nepomuceno, fixed-income strategist at brokerage Coinvalores in Sao Paulo. "You have very high interest rates here, and you have the Olympics coming, you have the World Cup coming, you have all these flows coming in, and, in addition to that, you only have one buyer, which is the central bank, so there's no way to hold it back."

  The outlook for continued inflation bolsters demand for the currency, as investors are expecting policy makers to boost the benchmark Selic interest rate, now at 10.75%, by as much as 150 basis points in the beginning of next year, Nepomuceno said.

  Prices as measured by the IGP-DI index rose 1.10% in September, in line with estimates, the Getulio Vargas Foundation reported Friday.

  Central Bank President Henrique Meirelles said in Washington, D.C., Friday that measures taken by central banks in developed economies have created a "disequilibrium" that is affecting currencies of emerging economies such as Brazil.

  "We're seeing a disequilibrium of currencies in the world created by excess liquidity of the dollar and by countries that try to protect themselves from this problem," such as China, Meirelles said.




CHILE:

CHILE'S PRICE INDEX IN LINE WITH EXPECTATIONS
Chile Sep CPI +0.4% On Month

Chile's consumer price index rose as expected in September on higher food and transportation costs, government statistics institute INE reported Friday.

The CPI grew 0.4% in September from the previous month, in line with the median estimate of a 0.4% increase in a Dow Jones Newswires survey of nine economists. Estimates ranged from increases of 0.3% to 0.5%.

For the January-September period, the CPI has gained 2.7%, the INE said.

The prices of food and non-alcoholic beverages surged 1.4% on the month, mostly on higher vegetable prices, which the INE attributed to "seasonal phenomenon and the bicentennial celebrations...as the [four-day] holiday increased demand and thus prices for these products."

Transportation prices increased 0.7% on the month on higher interurban bus fares and airplane tickets, also the result of increased demand during the Sept. 17-20 holiday.

Lower fuel prices, stemming from cheaper imports due to a stronger peso versus the dollar, offset some of these price hikes, INE said.

The institute introduced a revamped CPI earlier this year so it isn't reporting a headline 12-month variation until next year, but it did provide a referential 12-month September CPI variation, based on last year's index, of 1.9%.

The new index includes nationwide pricing while the previous index only included prices in metropolitan Santiago.

Chile, as part of the process for joining the Organization for Economic Cooperation and Development, revamped its CPI and other surveys, such as the Household Budget Survey and the unemployment survey, to meet OECD standards.

The core CPI was also up 0.4% from the previous month. For the nine-month period, core CPI, which factors out volatile fresh produce and fuel prices, rose 2.4% on the year.

Analysts, meanwhile, said the speed at which consumer prices are rising and the peso's strength--currently at two-year highs against the dollar--point to the central bank slowing down the pace of its interest rate hikes in coming months.

In June through September, the central bank raised the benchmark rate 50 basis points each month, bringing to its current level of 2.5%.

The monetary authority will continue withdrawing its monetary stimulus to normalize rates, albeit at at a slower pace.



MEXICO:

Mexico's Stocks Close At All-Time High

Mexico's stocks closed Friday at a new all-time high, as a weak U.S. employment report fed hopes that the Federal Reserve would take additional measures to prop up the economy at its next meeting.

The local IPC index of 35 most-traded Mexican stocks rose 0.6%, or 207.01 points, to close at a record 34464.82. Volume was modest, with 128.1 million shares traded at a total value of 4.48 billion pesos ($360.5 million).

Wireless operator and IPC heavyweight America Movil (AMX) L shares closed 0.7% higher at MXN34.52.
On Thursday, America Movil bought 143.85 million preferred shares in Brazilian cable television company Net Servicos SA (NETC4.BR) through its Brazilian subsidiary, as part of the company's plans to provide full telecommunications services in Latin America's biggest market.

Local Citigroup unit Banamex reiterated its buy recommendation on America Movil shares after the news.
Rallying copper prices sent mining concern Grupo Mexico (GMEXICO.MX) B shares surging 4.1% to MXN40.94, and media conglomerate Televisa (TV) CPO shares rose 0.5% to MXN54.87.
Local cement maker Cemex (CX) CPO shares closed flat at MXN10.42, while retailer Wal-Mart de Mexico (WMMVY), or Walmex, V shares sank 1.1% to MXN31.11.

Walmex is expected to report on Monday third-quarter net profit of 4.6 billion pesos ($370 million), up 19% from the year-ago period, according to the median estimate in a Dow Jones Newswires survey. Though sales and cash flow likely rose by more than 20% each, a number of analysts have neutral recommendations on the shares due to slowing growth and narrower margins.


Mexico's Peso Rallies To Strongest Close Vs Dollar Since May

Mexico's peso closed Friday at its strongest level since May as investor expectations of further U.S. monetary easing outweighed the negative considerations of a disappointing employment report for September, pressuring the dollar against major rivals.

The peso was quoted closing in Mexico City at MXN12.4110 to the dollar, compared with MXN12.5575 Thursday, recouping ground lost to short dollar covering the previous session ahead of the U.S. jobs report.

A Mexico City currency trader said a number of positive factors are converging to strengthen the peso, including gains in stocks and bonds, record foreign reserves, and corporate demand for dollars ahead of next week's monthly tax payments.

Technically, the rally could carry the rate down to MXN12.38 in the near term, the trader said, where it would likely generate demand for dollars. The peso reached its strongest level of the year in April, when the rate fell as far as MXN12.13. "It won't go that far," the trader said.

The federal government's sale this week of $1 billion in 100-year bonds at a yield of 6.1% also helped by contributing to confidence, the trader added.

Mexico's entry this month into Citigroup's World Government Bond Index is expected to continue generating additional flows into the local fixed-income market. The yield on benchmark 10-year government bonds fell Friday four basis points to 6.04%, and the yield on 20-year bonds due 2029 fell three basis points to 6.66%.

The peso gains also provided another window for banks to exercise options to sell dollars to the Bank of Mexico.

The Bank of Mexico bought $100 million, with which it has bought $500 million of the $600 million in options sold for October. Banks can exercise the put options when the peso is stronger than its 20-day average. The central bank buys the dollars at the previous day's "fix," rate, which is based on a sample of market spot rates. The fix was set at MXN12.5277 Thursday.



European Markets:

The FTSEurofirst 300 .FTEUS was down half a percent and Japan's Nikkei .N225 earlier closed down 1 percent. The euro declined 0.15 percent to 1.3904 against the dollar and the yen gained 0.11 percent against the greenback.

"There is some nervousness. We have seen in the course of the last couple of days that the market is reacting substantially to any indication about the labour statistics," said Luc Van Hecka, chief economist at KBC Securities.

Crude oil futures declined 0.93 percent to $80.91/barrel and gold futures fell 0.07 percent.

European stock markets are currently trading lower with FTSE 100 down by 19.86 points, DAX30 down by 14.17 points and CAC 40 down by 17.32 point


GREAT BRITAIN:

London Stocks End Slightly Lower

FTSE 100                   5657.61    -4.52   -0.08%
FTSE 250                  10724.91   -40.71   -0.38%
DJ UK Smaller Companies     910.62    -1.54   -0.17%

U.K. annual producer price inflation eased further in September as petroleum price gains waned, and food and electronics prices rose at a slower pace, but it was still stronger than analysts expected.

British Treasury chief George Osborne said the austerity program pursued by the U.K.'s new coalition government has taken the country "out of the financial danger zone" and removed doubts in markets about "whether Britain can pay its way in the world."

The leaders of the devolved administrations of Scotland, Wales and Northern Ireland urged the U.K. government Thursday to scale back its planned tough austerity measures or risk doing lasting damage to the economy and public services.


UK INFLATION ABOVE TARGET
UK Inflation Seen Remaining Sharply Above Target

The U.K. annual rate of inflation is expected stay stubbornly over one percentage point above the Bank of England's 2% target rate in September as a data heavy week unfolds.

  The monthly measure is expected to be unchanged from August, however, and the core rate--which excludes volatile food, drink and fuel prices--likely eased back on the year from August, broadly in line with the Monetary Policy Committee's central view that inflation will ease back over the longer term.

  "We expect consumer price inflation to edge down modestly over the final months of 2010, although much will depend on what happens with food prices," said Howard Archer, chief U.K. and euro zone economist for IHS Global Insight.

  "The upward pressure from unfavourable oil price base effects (where prices rose by more than a year ago) and sterling's past depreciation is expected to wane," he said.

  Unemployment data are also due next week and are set to repeat much of the previous month's results, namely that the claimant count unemployment measure rose for a second month in September, but that the wider international rate was stable again in the three months to August.

  "The labor market could still hold up well over the next few months," said Capital Economics economists n a weekly research note.

  "However, surveys of private sector employment have deteriorated considerably recently, suggesting that hiring has ground to a halt. So another small rise in the claimant count in September could be on the cards."

  The Royal Institution of Chartered surveyors September house price survey is forecast to report a faster slowdown in the pace of price declines, in line with the record monthly fall reported by lender Halifax.



FRANCE:

MORE PROTESTS AHEAD
French Unions Call New Day Of Pension Reform Protests Oct 16

French unions are to call for another day of popular protests against pension reform on Oct. 16, a union official told AFP, with indefinitely renewable nationwide strikes to begin Tuesday.




Asian Pacific Markets:

JAPAN:

Japan said it Will Continue to Intervene 
Japanese Prime Minister Naoto Kan said Japan would take decisive steps on the strong yen if needed but added it also wanted to cooperate with the G7 and other countries.

The dollar traded at 82.26 yen JPY=, close to a 15-year low of 82.11 yen hit on Thursday and edging ever closer to its 1995 record low of 79.75 yen.


CHINA: 

China has rebuffed calls from the West to let its currency rise faster but allowed it to firm on Friday to its highest against the dollar since a revaluation in July 2005.

China Determined to Keep Yuan Stable - G-20 could ease rifts

The issue of global currency rates was one of the main topics during Wen Jiabao's multi-day stay in Europe. One of the last things he said was: "Do not work to pressurise us on the renminbi rate.
 http://www.ibtimes.com/articles/69771/20101007/china-determined-to-keep-yuan-stable-g20-could-solve-rifts.htm


AUSTRALIA:


The Australian Dollar Rallied Thursday.
Aussie closes near 27-yr high, towards parity with greenback

The Australian dollar AUD=D4 fell 1 percent to a session low of $0.9708 on Bullard's remarks. The U.S. dollar's slide has benefited high-yielding currencies like the Australian dollar, which hit a 28-year high of $0.9918 on Thursday.



WORLD CURRENCY SNAPSHOT:
(FRIDAY, OCT 8, 2010 4:30 PM)

EUR/USD     1.3909     -0.0012 (-0.09%)
USD/JPY     82.0600 -0.3300 (-0.40%)
GBP/USD     1.5946     +0.0063 (0.40%)
CAD/USD     0.9869     +0.0043 (0.43%)
USD/HKD     7.7577     +0.0016 (0.02%)
USD/CNY     6.6710     -0.0193 (-0.29%)
AUD/USD     0.9860     +0.0033 (0.34%)


US BOND SUMMARY:
(FRIDAY, OCT 8, 2010 4:30 PM)
 
3 Month     0.10%     0.00 (0.00%)
6 Month     0.15%     -0.01 (-6.25%)
2 Year     0.26%     -0.01 (-3.70%)
5 Year     1.10%     +0.02 (1.85%)
10 Year     2.39%     +0.04 (1.70%)
30 Year     3.75%     +0.04 (1.08%)


WORLD MARKETS SNAPSHOT:
(FRIDAY, OCT 8, 2010 4:30 PM)

Shanghai     2,738.74     +83.09 (3.13%)
Nikkei 225     9,588.88     -95.93 (-0.99%)
Hang Seng Index     22,944.18     +59.86 (0.26%)
TSEC     8,244.19     -39.73 (-0.48%)
FTSE 100     5,657.61     -4.52 (-0.08%)
DJ EURO STOXX 50     2,785.43     -1.45 (-0.05%)
CAC 40     3,763.18     -7.29 (-0.19%)
S&P TSX     12,535.59     +89.66 (0.72%)
S&P/ASX 200     4,681.40     -9.90 (-0.21%)
BSE Sensex     20,250.26     -65.06 (-0.32%)

Friday's US Economic Calendar:

12:30 p.m.
Sept. U.S. unemployment rate: Non-Farm Payrolls (previous -10K); Unemployment Rate (previous 9.7%); Average Hourly Earnings (previous 22.66); Average Hourly Earnings Net Change (previous +0.06); Manufacturing Payrolls (previous -27K); Overall Workweek (previous 34.2); Overall Workweek Net Change (previous 0); Service Producing Payrolls (previous +67K); Government Payrolls (previous -121K); Federal Payrolls (previous -111K); Private Payrolls (previous +67K)

2:00 p.m.
Aug Wholesale Trade Inventories (expected +0.5%)

2:30 p.m.
U.S. Treasury Chief Economist Kreuger discusses employment numbers

Conferences:
International Monetary Fund - World Bank & International Monetary Fund Annual Meetings open

Market Summary, Thursday, Oct. 7, 2010:

Stocks:
Stocks finished mixed, with a loss for the Dow Jones Industrial Average and a gain for the Nasdaq, as nervousness about quarterly earnings reports and monthly jobs data offset more positive economic and sales reports.

Treasurys:
Shorter-dated Treasurys rose, boosted by continued speculation the Federal Reserve will step up government debt purchases to support the economy. The gains were moderate as investors awaited the key U.S. jobs report due Friday morning, the last monthly non-farm payrolls data before the Federal Reserve's monetary policy meeting in early November. "Fed policy expectations are still driving the market higher," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.

Forex:
The dollar recovered from a broad slump against most of its rivals as investors pared bets on riskier assets ahead of the all-important Friday reading on the U.S. employment situation. The dollar had earlier dropped to a 15-year low against the yen, a record low against the Swiss franc and its lowest level since 1983 against the Australian dollar. Worries about the jobs report sent investors into the perceived safe harbor of the greenback.



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