Latest US Economic News Headlines:

USA EQUITY INDEXES: (OCT. 21, 4:04 PM EDT)
Dow Jones 11146.57
S&P 500    1,180.26
Nasdaq     2,459.67

Dow Jones 2:30 PM Averages: DJIA 11,097.11 DN 10.86
30 INDUS     11,097.11 DN   10.86 OR    0.10%
20 TRANSP     4,698.24 DN   51.14 OR    1.08%
15 UTILS        407.95 DN    3.38 OR    0.82%
65 STOCKS     3,851.30 DN   20.23 OR    0.52%

US DOLLAR FUTURES INDEX DXY: 4:05 PM EDT: 77.45

0.28 (0.37%)
US COMMODITY PRICES: (OCT. 21, 4:05 PM EDT)
Crude Oil     80.68     + 0.15%
Natural Gas     3.38     + 0.33%
Gasoline     2.05     + 0.31%
Heating Oil     2.22     + 0.23%
Gold     1325.33     - 1.58%
Silver     23.15     - 3.38%
Copper     3.78     - 0.34%

SECTOR SUMMARY:
Basic Materials      -0.35%
Capital Goods       +0.62%
Conglomerates      +0.92%
Cons. Cyclical      +0.06%
Cons. Non-Cyclical+0.63%
Energy                     -0.67%
Financial                  -0.41%
Healthcare               -0.03%
Services    +0.23%
Technology              +0.15%
Transportation         -0.03%
Utilities     -0.48%

U.S. MARKETS MODESTLY HIGHER

As the US Dollar Rises equities and commodities pare earlier gains. U.S. stocks gained modestly Thursday, boosted by a stream of largely encouraging corporate earnings from blue-chip firms.

The Dow Jones Industrial Average added 38 points, or 0.35%, to close at 11146, cooling down from the morning's more vigorous climb as investors flinched over currency movements. Stocks weakened as the dollar gained. The Dow hits its highest level since April, then saw the rally disappear as the dollar gained. The Dow topped out at 11,214 and closed at 11,146.

Earlier, a rush of companies reporting quarterly earnings helped the measure extend its gains from the previous day, when the Dow added 129 points.

During the mornings trading hours the US Dollar declined, thrusting the US stock-indexes upward into Thursday mornings earnings reports.

U.S. stocks climbed Thursday morning, propelled higher by a wave of encouraging corporate earnings from blue-chip names including Caterpillar, McDonald's and Travelers.

The Dow Jones Industrial Average gained 97 points, to 11,205. A rush of corporate quarterly reports helped the measure extend its gains from the previous day, when the Dow added 129 points. The Nasdaq Composite rose 23.90 to 2480. The Standard & Poor's 500-share index added 10.27 points to 1188, led by its consumer discretionary sector.

Blue-chip companies reporting better-than-expected quarterly earnings led the Dow. Travelers Cos. added 1.9% after its third-quarter earnings and revenue topped Wall Street estimates and the property-casualty insurance firm raised its full-year guidance.

Demand for Treasurys - Mixed
Earlier Thursady, the two-year note was flat, while the 10-year note declined. In later trades the 10yr was higher at a yield of up to 2.52%.

U.S. TREASURY: 2-yr yield is 1 bp higher to 0.35%, 10-yr yield is 4 bps higher to 2.52%, and the 30-yr yield is 2 bps higher to 3.91%.

FREDDIE AND FANNIE - US TAX PAYER BAILOUT AHEAD

US regulators have warned that taxpayers may end up absorbing losses of $363 billion dollars (£231bn) from bad mortgage loans - the latest sign that problematic lending practices that triggered the 2008 banking crisis.

Fannie Mae and Freddie Mac could cost taxpayers another $19 billion over the next three years, the bailed-out mortgage titans' regulator said Thursday, but the total tab could nearly double if the U.S. economy slides back into a recession.

The projections by the Federal Housing Finance Agency were based on the results of "stress tests" it ran on Fannie and Freddie, whose woes have already cost taxpayers a combined $135 billion.

"Today's projections show that, in the most likely economic scenario, nearly 90% of the losses at Fannie Mae and Freddie Mac are already behind us," said Jeffrey Goldstein, under-secretary for domestic finance at the Treasury Department.

The bulk of the firms' losses have stemmed from soured mortgages that the firms bought or guaranteed between 2005 and 2008. The companies have sharply tightened underwriting standards, and loans made over the past two years aren't expected to lose money.

The stress-test figures don't include the 10% dividend payments that the firms must make every quarter to the U.S. government, which took over the companies two years ago through a legal process known as conservator-ship. The Treasury has agreed to inject unlimited amounts of cash to keep the firms afloat.

The Obama administration has promised to deliver a plan to revamp the firms, and the broader U.S. housing-finance infrastructure, by January 2011. The dividend payments on those Treasury investments are likely to prevent Fannie and Freddie from ever returning to profitability.

US CRUDE OIL:

US Crude Oil is $80.39 per barrel

Declines in Crude Oil Futures Continued Thursday.

OIL FUTURES: Crude Ends -2.4% At $80.55/Bbl

Light, sweet crude for December delivery on the New York Mercantile Exchange was down $1.54, or 1.9%, at $81 a barrel, after moving in a range of $80.82 to $82.70 a barrel. On the ICE, December Brent crude was down $1.20 or 1.4% at $82.40 a barrel.

Heading into Wednesday's expiration of November crude, prices moved in a volatile 4.9% trading range amid a bigger-than-expected drop in U.S. stocks of distillate fuel (diesel/heating oil) and a surprise rise in gasoline inventories.

There is significant open interest in the December contract, which could make for increased volatility ahead. Front-month crude traded below $80 a barrel on Tuesday for the first time this month, but recovered sharply to near $82 a barrel. We expect to see prices to hold $80 a barrel in the near term.

November heating oil futures prices were down 2.72 cents or 1.2% at $2.2276 a gallon, while November reformulated gasoline blend stock futures were off 2.92 cent or 1.4% at $2.0534 a gallon..

US NATURAL GAS:
Futures Hit 13-Month Lows After Large Storage Build

US GAS: Futures Close Down 4.7% At $3.374/MMBtu

Natural gas futures hit 13-month lows Thursday after a government report showed inventories continued to close in on last year's record levels, adding to the oversupply worry that has pressured the market for months.

Natural gas for November delivery slid 15.4 cents, or 4.4%, to $3.385 per million British thermal units on the New York Mercantile Exchange. The benchmark contract fell as low as $3.372/MMBtu after the report, the lowest price since September 2009.

The U.S. Energy Information Administration said natural gas inventories grew by 93 billion cubic feet last week, above the consensus estimate of an 88-bcf build. The report marked the sixth consecutive above-average weekly build.

"Obviously it was a bearish data point," said Scott Hanold, an analyst with RBC Capital Markets. But he said Thursday's report wasn't likely to push prices below $3/MMBtu. Some market participants have been reluctant to bet on further price declines with winter's gas heating demand on the horizon.

Natural gas in U.S. storage for the week ended Oct. 15 stood at 3.683 trillion cubic feet, 8.4% above the five-year average, and 1.3% below last year's figure. The week's injection was well above both the five-year average increase of 54 bcf and last year's 23 bcf increase. Market participants pay close attention to these reports because they provide an indicator of balance between gas supplies and demand.

Gas prices typically rise heading into the winter on expectations for increased heating demand for the fuel, but high supplies have stifled rallies so far.

"There's nothing fundamentally bullish to be garnered from the current market environment other than the price is still in technically oversold territory," said Jay Levine, of Enerjay LLC in Portland, Maine.

PRECIOUS METALS:
Comex Gold Flat- Declines As Dollar Climbs

US Gold: $1,322.33

US Silver: $ 23.14

Comex gold prices traded near steady Thursday, as some traders rushed to cash in record gains but others anticipated the rally to continue.

The most actively traded contract, for December delivery, settled down 1.4%, or $18.60, at $1,325.60 per troy ounce on the Comex division of the New York Mercantile Exchange.

Gold prices took a step down after six weeks of record-high prices, as some traders chose to cash in on recent gains. The most actively-traded contract has gained 14% since July.

Gold's down moves were shallow as even slight declines enticed new buyers into the market. Gold's overwhelmingly strong performance year-to-date continues to attract new investment, with open interest in the contract hitting a record high of 165,100 contracts Thursday.

"Every time you do have a meaningful selloff there are a lot of bargain hunters waiting to buy, so the selloffs seem to be temporary," said George Gero, vice president with RBC Capital Markets Global Futures.

However, some fund managers think repeating the recent record gains will be difficult, says Gero. Gold prices are up 20% percent this year, which is pushing some fund managers to explore other assets in the metals and commodities sector.

Settlements (ranges include floor trades and electronic trading):
London PM Gold Fix: $1,343.50 ; previous PM $1,339.00
Dec gold $1,325.60, down $1.86; Range $1,318.20-$1,349.60
Dec silver $23.139, down 7.25 cents; Range $23.030-$24.075
Jan platinum $1,673.40, down $1.39; Range $1,666.20-$1,696.40
Dec palladium $586.30, down $4.35; Range $582.30-$599.85

Sept US Leading Index Up 0.3%, As Expected

The Conference Board's index of leading economic indicators suggests the recovery will continue into 2011, but at a weak pace. The leading index increased 0.3% last month, after a revised gain of 0.1% first reported as 0.3%, the Conference Board said Thursday.

"More than a year after the recession officially ended, the economy is slow and has no forward momentum," said Ken Goldstein, economist at the board.

Thursday's leading index report was released a short while after government data showed new jobless claims unexpectedly fell 23,000 to 452,000 in the October 16 week.

In September, five of the ten leading indicators increased. The most positive indicators were the interest rate spread and average weekly jobless claims. The biggest negatives were vendor deliveries and building permits.

The coincident index was unchanged for the second consecutive month. The lagging index rose 0.4% last month after it increased a revised 0.1% that was first reported as 0.2%.

STOCKS REPORTING

McDonald's rose 1.4% after its third-quarter earnings climbed 10%, topping analysts' forecasts, and the company's chief executive predicted same-store sales would rise between 5% and 6% in October, as momentum continues from the prior quarter.

AT&T was the Dow's worst performer, falling 1.1% after its third-quarter earnings nearly quadrupled, but analysts worried over how the company will fare when it is no longer the sole U.S. carrier to offer iPhone service.

EBAY BOND SALES BRISK
Eager Investors Bid Up EBay's Inaugural Bond

EBay Inc. (EBAY) Thursday sold its first corporate bond issue in the U.S. high-grade market.

The deal was announced the day after release of the online-auction site's third-quarter earnings, which topped analysts' expectations. The company reported late Wednesday its third-quarter income rose 23%, fortified by the stellar performance of its Internet payments provider, PayPal.

The payment service added more than a million accounts monthly and ended the third quarter with 90 million active accounts, eBay said in a statement. EBay's core business hasn't performed as well as its PayPal or Bill Me Later units.

The e-commerce retailer's stock rose $1.54, or 6%, to $27.20, and was one of the Thursday session's best performers.

The $1.5 billion three-part offering included $400 million of three-, $500 million of five-, and $600 million of 10-year securities and has been rated A2 by Moody's Investors Service and A by both Fitch Ratings and Standard & Poor's.

The three-year paper was sold with a risk premium of 42 basis points, the five-year at 57 basis points and the 10-year at 77 basis points over Treasurys--all at their launch levels. In addition, all three tranches were launched at tighter levels than preliminary price guidance suggestions, indicating good demand for the issue.

Earlier guidance had suggested a risk premium of 45 basis points over Treasurys on the three-year tranche; 60 basis points on the five-year tranche and 80 basis points on the 10-year piece. Comparable debt includes Microsoft Corp.'s (MSFT) 4.50% bonds due 2040, which recently traded at 82 basis points over Treasurys and its 3.00% bonds due 2020, last quoted at a risk premium of 46 basis points over Treasurys, according to MarketAxess.

David Trahan, head of investment-grade syndicate at Citi, one of the joint book runners for the offering, said his firm booked about $13 billion of orders from about 400 different buyers. Most were based in the U.S., but he added that there was a "fair amount of continental European interest."

Trahan said the company's business model has become "better understood" by the marketplace, which helped to buoy sales despite aggressive pricing. The deal's three-year tranche boasted one of the lowest coupons on record, at 0.875%. "Ebay priced lower than where most single A credits are currently trading," Trahan said.

Lawrence Glazer, managing partner at Mayflower Advisors in Boston, said eBay has been considered "pretty mature" by investors, and its PayPal business "the only thing sexy about the company right now."

Some say the allure of its profitable PayPal business isn't enough to entice investors to buy and/or hold the new paper in their portfolios.

CHINA RDA IPO LAUNCHED IN US

China's RDA Microelectronics Files For $100M IPO In US

Chinese semiconductor company RDA Microelectronics Inc. plans to sell up to an estimated $100 million of American depositary shares in an U.S. initial public offering.

The company, which hires other factories to produce its chips, specializes in the design of high-performance radio-frequency and mixed-signal systems-on-chip. RDA plans to use proceeds from the IPO to finance its growth, develop new products and fund capital expenditures, among other uses.

The U.S. IPO market, which saw a surge of launches in recent weeks, has been especially receptive to Chinese companies. Half of the companies that have launched publicly since the start of September have been from China, and all but one have outperformed U.S. companies in their debuts.

RDA has applied for its ADS to be traded on the Nasdaq Global Market under the symbol RDA. In the first half of this year, RDA's profit almost tripled to $8.4 million as revenue climbed 66% to $76.2 million.

RALLY MAY COOL AT END OF DAY
US Dollar and Its Influence on the Market and Commodities

Forex: While the rally in currencies on both Wednesday and Thursday has managed to cast some doubt and uncertainty over the recent USD recovery, we will not be dissuaded at current levels, and look for the Greenback to once again find its footing in North American trading this afternoon.

The dollar weakened against the euro, but strengthened against the yen. The euro was trading recently at $1.3989, up from $1.3949 late Wednesday in New York. The U.S. Dollar Index, which tracks the currency against a basket of six others, edged down 0.1%.

US Dollar Forecast to Fall Near Term To Finish Technical Chart
Commodity traders need to pay extra close attention to the U.S. dollar index in the near term. Perhaps Friday, or Monday of next week.

Forex traders are waiting for the one-year low support line to be reached, and for the index to complete its chart. On Monday, the 18th, I posted that the dollar is at a tipping point. The next day the dollar broke out. Price action this week in the dollar index (DXY) has given the bulls some fresh upside near-term technical momentum.

My recent calls for a sustained US Dollar reversal have yet to come to fruition, and such one-sided trading crowd sentiment clearly gives us pause in our otherwise-bullish Dollar bias in the near-term. Through the short term, bearish momentum favors US Dollar weakness.

The evidence of a previous bearish sentiment extreme and early signs of material reversal suggest that the US currency may be about ready to set an important bottom very soon.

The Moving Average Convergence Divergence (MACD) technical indicator overlaid on the daily bar chart for December U.S. dollar index futures shows a bullish line crossover signal has just been generated, whereby the ADX line crossed above the "trigger" line of the indicator.

Both lines are also just starting to trend up, which is another bullish signal. The last bullish line crossover signal produced by the MACD indicator was in early August, at which time the dollar index did rally from that time frame into late August.

The U.S. dollar index bulls would gain better upside near-term technical momentum by pushing December futures prices above solid resistance at the 70.00 level. The bears would regain some downside technical momentum by pushing the December dollar index below strong chart support at 77.50.

Euro is likely to hold 1.40 shead of the G-20 Meeting. The British Pound remains capped by the 20-Day SMA (simple moving average).

A EURUSD break below the downward sloping neckline would confirm a larger reversal and shift focus to 13335 (August high). 13800 is potential support today.

The British Pound pared yesterday’s advance and reversed course at the 20-day SMA as retail sales in the U.K. unexpectedly contracted 0.2 percent in September.

MANUFACTURING DATA REPORT:

Philadelphia Fed Business Index 1.0 In Oct Vs. -0.7 Sept

Mid-Atlantic manufacturers expanded this month, but at an extremely weak pace, according to a report released Thursday by the Federal Reserve Bank of Philadelphia. One measure of inflation in the report jumped this month.

The Philadelphia bank said its index of general business activity within the factory sector edged up to 1.0 in October from -0.7 in September.Readings under zero denote contraction, and above-zero readings indicate expansion.The report's new orders index improved to -5.0 from -8.1 in September, while the shipments index increased to 1.4 from -7.1 last month.

The important employee index rose to 2.4 from 1.8 in September and the workweek also improved.

The inventory index worsened to -18.6 this month from -16.7, indicating businesses are still cutting their goods on hand, a negative for economic growth.

The inflation gauges increased. The prices-paid index jumped to 31.5 from 9.8, while the prices-received index reached -9.0 from -13.9.

The Philly Fed report follows last week's stronger Empire State survey from the New York Fed. That survey showed business conditions among New York manufacturers improved significantly, with a large spike in the new orders component--the highest since June--and a gain in the employee index.

In a series of special questions, the Philly Fed asked manufacturers about changes in their labor force compared with last year. The survey showed 39.5% of respondents had increased their workforce and 34.6% had cut workers.

BEFORE THE BELL:

American's Lost Another 452,000 Jobs Last Week
US Initial Jobless Claims Fell Last Week to 452,000

Applications for U.S. unemployment benefits fell last week to a level that’s consistent with little improvement in the labor market.

Initial jobless claims declined by 23,000 to 452,000 in the week ended Oct. 15, Labor Department figures showed today in Washington. The total number of people receiving unemployment insurance fell, while those getting extended payments rose.

The pace of firings has persisted since the start of the year, indicating it will take longer to reduce an unemployment rate that’s near a 26-year high. A Federal Reserve report yesterday showed the economy is growing at a “modest pace” with companies still hesitant to hire, a reason central bankers may ease monetary policy.

“Initial claims at this level is still consistent with a sluggish labor market,” said Jonathan Basile, an economist at Credit Suisse in New York. “We’ve been stuck in a range for most of the year. It doesn’t tell you that the layoff trend has improved dramatically this year.”

A Labor Department spokesman said several states had estimated claims for the prior week because they weren’t able to provide actual figures. The final tallies turned out to be higher than what they had initially provided to the Labor Department.

The four-week moving average of claims, a less volatile measure, fell to 458,000 from 462,250.

The number of people continuing to receive jobless benefits fell by 9,000 in the week ended Oct. 9 to 4.44 million, the lowest since June 26.

The continuing claims figure does not include the number of Americans receiving extended and emergency benefits under federal programs. Those who’ve used up their traditional benefits and are now collecting emergency and extended payments increased by about 279,000 to 5.07 million in the week ended Oct. 2.

Adjusted Unemployment Rate Reported

The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 3.5 percent in the week ended Oct. 9.

Fifty-one states and territories reported an increase in claims, while two reported a decline. These data are reported with a one-week lag.

Companies in September added 64,000 workers, while total payrolls that include governments fell a larger-than-forecast 95,000, Labor Department figures showed Oct. 8.

The drop in U.S. payrolls in September largely reflected local governments firing educators and other workers to make up for declining tax revenue. Struggles to keep state and local government budgets balanced likely will continue to weigh on job growth and sustain the level of weekly jobless claims.

Private companies are still firing workers. Aon Corp., the world’s biggest insurance broker, plans to cut 1,500 to 1,800 jobs globally as it integrates businesses after the acquisition of consulting firm Hewitt Associates Inc., the Chicago-based firm said Oct. 14 in a regulatory filing.

“There are going to be some redundancies as part of this” acquisition, Chief Executive Officer Gregory Case told analysts in a July conference call.

Some firms are hiring. Delta Air Lines Inc. is adding 1,000 flight attendants, many of them to work on more profitable international routes, as global demand for travel improves.

About 600 of the positions will be new hires and Delta has received 85,000 applications, Betsy Talton, a spokeswoman for the Atlanta-based company, said this week.

The company first offered the jobs to attendants who were on furlough and 425 accepted, Chief Executive Officer Richard Anderson said in his weekly recorded message to employees.

US Stock Futures Higher

STOCK FUTURES RISE BEFORE THE BELL

US stock-index futures rose on Thursday morning, as strong company earnings boosted sentiment on Wall Street. The focus at the moment is on better-than-expected earnings" in recent days.

Futures extended gains slightly amid a further rush of earnings ahead of the opening bell.

Futures on the Dow Jones Industrial Average rose 55 points to 11,118, while futures on the S&P 500 gained 6.8 points to 1,181.5. Nasdaq 100 futures added 15.75 points to 2,099.5.

Caterpillar (CAT.N) gained 1.2% after its third-quarter profit surged 96%, as machinery sales jumped from last year's moribund level, revenue exceeded analysts' expectations and the company raised its 2010 earnings estimates.

Travelers Companies Inc. (TRV) said third-quarter net profit rose to $1.01 billion, or $2.11 a share, from $935 million, or $1.65 a share, in the same period a year ago. The property-casualty insurance firm said it expects full-year 2010 operating income in the range of $5.75 to $5.95 a share, compared to a previously-announced range of $5.20 to $5.45.

Indianapolis health-care giant Eli Lilly & Co. (LLY) reported a 38% rise in third-quarter net income to $1.3 billion, or $1.18 a share. The firm also raised its full-year adjusted earnings forecast.

U.S.-listed shares of mobile-phone giant Nokia Corp. (NOK) rallied nearly 8% in premarket trading after it said it swung to a profit attributable to equity holders of EUR529 million ($742 million) in the third quarter from a loss of EUR559 million in the same period a year ago. The result topped forecasts for earnings of EUR229 million.

Earnings from online-auction site eBay Inc. (EBAY) and DVD-rental service Netflix Inc. (NFLX), released after Wednesday's close, also topped analysts expectations.

Shares of Ebay rose 7% in premarket trading. The firm reported third-quarter adjusted earnings were 40 cents a share, topping the forecast of 37 cents produced by a FactSet Research survey of analysts.Shares of Netflix rallied 12% in premarket trading. The company said earnings excluding stock-based compensation were 78 cents a share for the third quarter, above forecasts for 71 cents.

DOLLAR UP & DOWN
The US dollar rose overnight on Thursday after U.S. Treasury Secretary Timothy Geithner said ahead of a G20 meeting that major currencies were roughly in alignment.

The Wall Street Journal on Thursday said Geithner had suggested in an interview that he saw no need for the dollar to sink further against the euro and the yen. The news prompted the dollar, which has been in a downtrend for several weeks, to spike half a yen and climb rapidly against the euro.

These Five Economic Barometer Stocks Are Pointing to a Higher Market
http://seekingalpha.com/article/230218-these-five-economic-barometer-stocks-are-pointing-to-a-higher-market?source=feed
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Canadian Market:

Toronto Stocks Decline

Toronto's key index was back in the red at midday Thursday, as modest gains in consumer and industrial issues were overpowered by losses in financials and materials.

At Noon Thursday, the S&P/TSX Composite Index was down 31.88 points, or 0.25%, at 12618.04. Declines led advances 683 to 677. Trading volume was 235.5 million shares. The S&P/TSX 60 Index was down 1.77 points, or 0.24%, to 728.39.

The materials sector sank 0.93%, with golds the main source of weakness. In the group, Barrick Gold was down 56 Canadian cents at C$46.44 and Kinross fell 0.44 to 18.15 and Goldcorp lost 0.65 to 42.76. Offsetting the declines was senior miner Teck Resources, which added 0.17 to 45.48.

Energy was also negative, falling 0.20%. While EnCana lost another 0.54 to 28.59, Enbridge gained 0.49 to 56.07.

Financials was another weak spot, losing 0.24%. In banking issues, Royal Bank of Canada was off 0.09 at 56.76 and Toronto Dominion eased 0.10 to 75.90.

Information technology was unchanged, though BlackBerry-maker Research In Motion was up 0.36 to 50.55.

Transportation giant Bombardier, up 0.15 to 5.22, and Canadian Pacific Railway, up 0.30 to 66.97, sent the industrials sector 0.24% higher.

Auto-parts giant Magna increased 0.34 to 91.34 and fast-food chain Tim Horton rose 0.20 to 38.09; the consumer discretionary group climbed 0.32%.

Telecom services rebounded 0.30%, as BCE gained 0.17 to 34.55.

Cardiome Pharma gave up 0.93 to 5.57 after a late-stage trial of its KYNAPID drug was halted because a patient suffered cardiogenic shock.

Toronto Indexes, Volume; 3 PM EDT Composite Down 48.98

S&P/TSX Composite   12600.94 off 48.98 or 0.4%
S&P/TSX 60 Index      727.72 off   2.44 or 0.3%
Financials            181.89 off   0.44 or 0.2%
Materials             391.28 off   4.02 or 1.0%
Energy                288.47 off   1.71 or 0.6%
Industrials           108.23 off   0.15 or 0.1%
IT                     28.43 off   0.10 or 0.4%

   Volume         Thursday    Wednesday
   2-3                 54.8M       51.0M
   9:30-3             415.2M      405.4M
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South American Markets:

BRAZIL:

Brazil Stocks Open Higher
Brazilian stocks opened higher Thursday, the benchmark Ibovespa stock index climbed 0.3% after a volatile opening, to 70,617 points, up from Wednesday's close of 70,405.

The Brazil central bank's monetary policy committee held interest rates steady at 10.75% in a widely expected move Wednesday. The move was seen by some as a complementary move to the government's efforts to curb the Brazilian real's gain, which would help boost the competitiveness of the country's exports.

Brazil's government raised its projection for the country's 2010 economic growth despite a recent slowdown in industrial activity, the Finance Ministry said Thursday.

In its latest bimonthly economic report, "Brazilian Economy in Perspective," the ministry said that it expects Latin America's largest economy to grow 7.5% in 2010, up from a previous estimate of 6.5%. The ministry also expects average annual growth of 5.9% between 2010 and 2014.

The Finance Ministry's 2010 growth projection was slightly lower than recent market forecasts, which put 2010 growth at about 7.55%, according to the Central Bank of Brazil's latest market survey, out Monday.

Brazil's central bank bought U.S. dollars at an auction Thursday for BRL1.6865 to the dollar, local Estado newswire said.

Before the auction, at 1336GMT, the real was trading at BRL1.6810 to the dollar. Immediately after the auction, at 1513GMT, the real traded at BRL1.6847.

Brazil's central bank has been purchasing dollars at twice-daily spot market auctions in recent weeks to build up foreign reserves and stem appreciation of the real.

Brazilian Blue Chips Were Mixed in Early Trading

Government-controlled energy giant Petroleo Brasileiro SA (PBR, PETR4.BR), or Petrobras, slipped 0.04% to BRL24.98.

Vale SA (VALE5.BR, VALE), the world's biggest iron-ore producer, was unchanged at BRL49.30.

MMX Mineracao e Metalicos SA (MMXM3.BR), the iron-ore producer controlled by Brazilian billionaire Eike Batista, rose 0.73% to BRL13.86.

Centrais Eletricas Brasileiras (EBR, ELET6.BR) slumped 2.89% to BRL28.26 after a poll showed government candidate Dilma Rousseff widened her lead over opposition party rival Jose Serra. Rousseff is expected by the market to be more aggressive in using the state-controlled utility to move forward with government energy programs.

Cia Energetica de Sao Paulo (CESP6.BR) also slipped, falling 3.55% to BRL27.69 on speculation the state-controlled utility is less likely to be privatized should Rousseff win.

Telephone giant Tele Norte Leste SA (TNE, TNLP4.BR), or Oi, slipped 0.85% to BRL25.74.

Leading steel producer CSN (SID, CSNA3.BR) jumped 1.37% to BRL28.07, while rival Usinas Siderurgicas de Minas Gerais (USIM5.BR) rose 0.80% to BRL20.19.

Aircraft manufacturer Empresa Brasileira de Aeronautica (ERJ, EMBR3.BR), or Embraer, dropped 0.17% to BRL11.73.

BRAZIL'S RETIREMENT DEFICIT 9.1 Billion
Brazil September Pension Deficit BRL9.19B
The deficit in Brazil's publicly-administered Social Security system narrowed slightly in September compared with the same month a year ago under the continued favorable influence of growing local employment and revenue collection, the country's Social Security Ministry reported Thursday.

The ministry said the deficit narrowed to 9.19 billion reals ($5.47 billion) compared with BRL9.60 billion in September 2009, but was wider from BRL5.42 billion in August this year.

Revenue during September this year totaled BRL17.17 billion, while benefit payments totaled BRL26.32 billion.

The ministry, however, said the September result was adversely affected by the advance payment of BRL6.8 billion in year-end benefits during the month.

Brazil's accumulated Social Security deficit for the January-through-September period, meanwhile, totaled BRL40.13 billion, narrower from BRL40.95 billion during the same period in 2009.

Revenues during the period totaled BRL147.22 billion while spending on benefits totaled BRL187.46 billion.

Speaking after the release of the figures Thursday, Social Security Minister Carlos Eduardo Gabas said the ministry raised its projection for the country's year-end 2010 social security deficit to BRL46 billion from BRL44.5 billion previously due to the expected adverse impact of a Brazilian supreme court ruling last month requiring additional benefit payments to retirees.

Brazil's social security deficit is a key contributor to the country's public sector nominal budget deficit. As of August, Brazil posted a 12-month nominal public sector deficit of BRL115.8 billion, or the equivalent of 3.38% of gross domestic product.

MEXICO:

MAJOR 6.9 EARTHQUAKE

The USGS reported a major 6.9 earthquake hit 717 miles SE of Tijuana, Baja California

October 21 17:53:14 UTC
Thursday, October 21, 2010 at 11:53:14 AM at epicenter. No reports of damage have been received as of this posting.

http://earthquake.usgs.gov/earthquakes/recenteqsww/Maps/region/N_America.php

VENEZUELA:

Venezuela 3Q GDP Growth Close To Zero

Central Bank President Nelson Merentes said Thursday that he expects Venezuela's economic growth figures for the third quarter to come in close to 0% and could be negative.

Merentes told reporters the third-quarter figure will likely be better than in the second quarter when the gross domestic product fell 1.9%. The central bank president added that he expects the economy to resume growth in the last quarter of the year.

The Venezuelan government presented a bleak economic picture in its budget for next year, a sign that the administration of President Hugo Chavez expects a slow economic recovery and high inflation in 2011.

The economy is expected to grow 2% in 2011 while prices will rise between 23% and 25%, according to the budget estimates presented Thursday by Finance Minister Jorge Giordani.

Venezuela's oil-driven economy saw a 3.3% contraction in all of 2009 as lower oil prices, following record highs in 2008, took a toll. Adding to the country's woes was a crippling electricity crisis in late 2009 and early 2010 when a drought and a lack of capital investment in the state-run sector caused widespread power shortages.

The government's budget is set for 204.2 billion bolivars and was calculated with a price for Venezuela's crude oil basket at $40 a barrel, well below this year's average of $69.53 a barrel.

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European Markets:

European Markets Moving Higher
European stocks edged up on Thursday, with phone maker Nokia (NOK1V.HE) rising after forecast-beating results, though economic worries rekindled by news of slowing growth in the euro zone capped index gains.

At 1031 GMT, the FTSEurofirst 300 .FTEU3 index of top European shares was up 0.4 percent at 1,090.83 points. The European benchmark is up 69 percent from its lifetime low of March, 2009, as several major economies have emerged form recession, helped by fiscal stimulus. However, the gain in 2010 has been just 4.3 percent.

The euro zone's economic recovery lost momentum this month as a surprise upswing in Germany was offset by slowing growth in France, and manufacturers countered a poorer performance in the service sector, surveys showed.

LONDON:

FTSE 100 Up 0.4 Percent

Food, travel firms lifted by Europe, U.S. results, miners push higher as global recovery hopes intact.
Food, travel firms lifted by Europe, U.S. results, miners push higher as global recovery hopes intact. Stronger miners and banks lifted Britain's top shares on Thursday, supported by strong U.S. and European earnings, with British Airways (BAY.L) a big beneficiary of solid results from U.S. peers.

By 0911 GMT the FTSE 100 .FTSE was 0.4 percent higher at 5,751.44 after rising 0.4 percent on Wednesday.

Miners delivered the biggest lift to the index, supported as metal prices held near recent highs and as strong corporate earnings and solid data from China supported confidence the global economic recovery was sustainable. Anglo American (AAL.L) led the way, up 1.9 percent after releasing third-quarter earnings while Rio Tinto (RIO.L) added 1.7 perecnt.

"Attention has shifted away from the focus on an interest rate rise in China to strength in corporate earnings in the U.S. where around three-quarters of results have exceeded expectations," said Richard Hunter, head of equities at Hargreaves Lansdown.

Confidence on the sustainability of the global recovery and thus the demand outlook for metals was shored up as China said its economic growth slowed in the third quarter but was a touch stronger than expected. China sent equity markets lower markets on Tuesday when it announced the first hike in its core interest rate since 2007.

UK equities shrugged off data which showed a British economy struggling to recover strongly from an 18-month recession.

British retail sales unexpectedly fell for a second month in a row in September, driven lower by weak clothing and fuel sales, official data showed.

Lending to UK firms rose in August for the first time since February but remained 5.4 percent lower than the same month a year ago, Bank of England figures showed.

British Airways (BAY.L) was the top gainer, up 3.9 percent, buoyed by strength from its U.S. peers. Delta Air Lines (DAL.N), US Airways Group Inc (LCC.N) and American Airlines parent AMR Corp (AMR.N) all posted strong results.

In the travel sector, TUI Travel (TT.L) was the sharpest faller, down 7.1 percent after it restated its 2009 results and said its finance chief will go after stumbling across 117 million pounds ($185 million) owed by customers that will now have to be written off.

But overall there was confidence on the sector, with InterContinental Hotels (IHG.L) up 3.2 percent after French peer Accor (ACCP.PA) raised its 2010 profit goal on Wednesday and posted third-quarter sales slightly above forecasts.

Food producer Unilever (ULVR.L) and household products firm Reckitt Benckiser (RB.L) and Associated British Foods (ABF.L) were also beneficiaries of strength from European results after French food group Danone posted a forecast-beating 15 percent rise in third-quarter sales.

Banks also gained with HSBC (HSBA.L) and Lloyds Banking Group up 1.6 and 0.3 percent respectively.

Tullow Oil (TLW.L) was off 3.2 percent after it said an offshore well in Ghana failed to find oil, prompting Oriel to downgrade the British-based explorer to "reduce" from "hold".

UK Public Borrowing Hits Record High - Government Slashed Spending

The UK Government has slashed billions from public spending and many people will be worse off as a result. UK businesses express fury over £1bn Green Stealth Tax in spending review. Businesses have condemned an "appalling" £1bn a year green stealth tax that will add 11pc to the energy bills of British companies. Workers must pay £1,200 more tax to 'hit cuts target'

FRANCE:

FRENCH STRIKE WIDENS
Protesters to Hit France en Masse

In recent days, violence has erupted in some areas around the country, as students and other protesters clash with police.

The French have taken to the streets en masse in sometimes violent protest against any change to State pension provision. Their system is absurdly generous by any international standard; which is why there's a EUR32 billion hole in it. But the protests' breadth and virulence are astonishing considering the relatively trivial nature of proposed reforms.

President Sarkozy on Wednesday ordered police to clear protesters blockading fuel depots around the country. Together with union strikes that have put a stop to French oil refinery output, the blockades had starved up to a third of the nation's service stations of fuel, as motorists have been panic buying. Government officials have said they hope to get the fuel distribution in France back to normal in four or five days.
Sarkozy wants the minimum retirement age raised from 60 to 62, where it would still be among the lowest in the world. He wants people to wait until 67 for full pension benefits, from 65 now.

Protesters have hit the streets in France en masse in the sixth such demonstration in two months against Nicolas Sarkozy's unpopular pension reforms.

Airport staff, bus and train drivers, teachers, postal workers and armoured truck drivers who stock cash machines will join refinery workers and others in a day of nationwide strikes against Mr Sarkozy's plan to raise the retirement age.

Fuel shortages will worsen as refinery strikes go into an eighth day, and the authorities will be alert for any escalation of sporadic violence on Monday in some cities, with small groups of troublemakers torching vehicles and scuffling with police.

A school in Le Mans, northwest France, burned down in the early hours of Tuesday after an apparent arson attack but it was unclear if the apparent arson attack was linked to the protests.

Mr Sarkozy, who is meeting his German and Russian counterparts for talks in the northern French seaside town of Deauville on Tuesday, said he would not back down.

"The reform is essential and France is committed to it and will go ahead with it just as our German partners did," Sarkozy said after talks with German Chancellor Angela Merkel, who urged the French to accept that living longer meant working longer.

Germany voted in 2007 to lift its retirement age to 67 from 62 by 2029 and many other European countries have similarly increased retirement ages, or plan to.

French Unions Call Nationwide Strikes, Protests Oct 28, Nov 6

The unions – which crushed pension and labour reforms in 1995 and 2006 with long-running protests – say they want the bill scrapped and a say in discussing a pension overhaul.

French labor unions Thursday kept up pressure on unpopular conservative French president Nicolas Sarkozy by calling for protests and nationwide strikes on Oct. 28 and protests for Nov. 6 to express anger over a State pension reform plan steaming toward passage in Parliament.

So far this autumn, unions have organized six days of national protest, four of which have coincided with nationwide strikes. The protests had started out against pension reform, but appear to be embracing other areas of discontent with each passing day.

SPAIN:

SPAIN'S POVERTY LEVEL GROWING
One In Five In Spain Live In Poverty

More than one in five Spaniards live in relative poverty and nearly one-third of households say they struggle to make ends meet, the national statistics office said Thursday.

The proportion of Spaniards living below the poverty line -- defined as making do on less than 60% of the average income -- grew to 20.8% this year from 19.5% in 2009, according to provisional data.

Fully 30.4% of all households reported having "difficulty" or "great difficulty" reaching the end of the month within their means, up from 26.2% in 2005 when the Spanish economy experienced a property boom.

The percentage of people who said they had been late over the past 12 months with household expenses such as mortgage payments or electricity bills rose to 7.7% this year from 4.7% in 2005.

The average household income in Spain in 2009 fell 2.9% to EUR25,732 ($35,811) a year, meaning households below the poverty line earned less than EUR15,439 annually or EUR1,287 a month.

Incomes were highest in the northern province of Navarre on the border with France and in the Basque region. They were lowest in the western region of Extremadura on the border with Portugal and in Andalusia in the south.

The bursting of the property bubble plunged the Spanish economy, Europe's fifth-largest, into its worst recession in decades in 2008 and sent the unemployment rate soaring to more than 20%, the highest in the eurozone.

It emerged from recession during the first quarter of this year with tepid growth of 0.1% and 0.2% in the second but prospects for the economy remain weak.

The International Monetary Fund predicts the Spanish economy will shrink by 0.3% this year and expand by 0.7% in 2011.

Spain's Ebro In Exclusive Talks To Buy Australia's RiceGrowers

Spanish food company Ebro Foods SA (EBRO.MC) said late Wednesday it's in exclusive talks to buy Australia's RiceGrowers Ltd. for some EUR425 million, or AUD$600 million.

Spanish Regulator:
Preliminary OK To Telecinco-Cuatro Merger-Prisa

The Spanish competition commission has given a preliminary green light to the proposed merger of television broadcasters Gestevision Telecinco SA (TL5.MC)and Cuatro, Cuatro's owner Promotora de Informaciones SA (PRS.MC) said Thursday.

Spain's Catalonia Region Launches Retail Bond To Shore Up Finances

Spain's Catalonia region Thursday said it is launching the sale of between EUR1.89 billion and EUR2.5 billion in one-year bonds aimed at local retail investors.

The move comes as the country's highly indebted regions face increasing difficulties to finance themselves on international debt markets.

In a statement, the finance department of the Catalonia regional government said the subscription period of the offer will run from Oct. 22 to Nov. 12. A spokesman said that if the government sells the full EUR2.5 billion, it will nearly have covered its EUR8.5 billion financing needs for this year.

Catalonia, whose capital city is Barcelona, is Spain's second-most populous region and its biggest contributor to gross domestic product. The one-year bond is the first it is selling to retail investors in more than 20 years and comes at a high price for the regional government--a 4.75% coupon, more than twice that offered by the central government at an auction of 12-month treasury bills earlier this week.

Moody's Investors Service on Tuesday downgraded Catalonia to A2, its lowest rating for a Spanish region, from A1, citing the region's rising funding costs.

"Moody's notes that (Catalonia's) cost of funding has been growing rapidly and that it is relying more heavily on short-term debt," the ratings agency said in a statement. "This has been heightened following the region's plan to issue a retail bond which, while contributing to secure funding, pays a high coupon and has a one-year maturity."

Catalonia's EUR29.5 billion debt load is the largest of any region in Spain, though as a percentage of GDP it is the second-highest behind that of Valencia, according to data from the Spanish central bank. Its financial problems have become a key issue in regional elections scheduled for Nov. 28, in which Convergencia i Unio is expected to defeat the incumbent Socialists.

Spanish regions control the bulk of spending in highly decentralized Spain, over one third of the total, and have been frequent issuers on international debt markets in recent years. Also, until the Greek-centered financial crisis spread to other fiscally frail countries such as Spain and Portugal earlier this year, they were able to issue bonds at rates similar to those for Spanish sovereign debt.

But that has changed since the sovereign debt crisis broke out and regions such as Catalonia have faced increasing difficulties selling bonds to international investors or even obtaining credit from local banks. Spanish municipalities also face an acute financial crisis, to the point that many are struggling to pay employee salaries as well as for essential services such as trash collection and street cleaning.

All levels of Spanish government are grappling with the collapse of a tax-rich construction boom that has sent their accounts deep into the red. Spain had a total budget deficit of 11.1% of GDP in 2009, which it is aiming to bring within the 3%-of-GDP limit for European Union countries by 2013.

IRELAND:

IRISH REAL ESTATE BUST LINGERS
Ireland Has 33,000 Vacant Homes, 2,800 Unfinished Housing Units

There are 2,800 incomplete housing estates across Ireland with 33,000 empty homes, according to a nationwide survey released Thursday by the Department of the Environment, Heritage and Local Government.

Minister for Housing and Local Services Michael Finneran said the total number of vacant units either completed or nearly completed is roughly equal to 18 months construction output of new housing at 2009 levels.

The National Housing Development Survey said that planning permission had been granted for 180,000 housing units on these so-called "ghost estates" around the country, most of which were located outside Dublin.

The survey also said more than 120,000 housing units had commenced construction, 77,000 dwellings were completed and occupied, and a further 33,000 homes were either completed or near-completed and vacant.

The property bubble burst in 2007, leaving banks with billions of euros of loans to property developers, many of which are likely to go unpaid. The bailout of the nation's banks will require EUR50 billion in a worst case scenario.

The state-run National Asset Management Agency is currently in the process of buying property loans from banks with a book value totaling EUR73.4 billion for an expected discount cost of just EUR30.5 billion.

ITALY:

RESIDENTS PROTEST AREA WASTE DUMP SITE
Italian Government Calls Emergency Talks Amid Riots

Rioting residents threw rocks at police and destroyed police cars and garbage trucks during violent skirmishes near Naples on Thursday that injured 20 officers as the region's waste disposal crisis escalated.

The skirmishes prompted the government to call an emergency meeting for Friday.

Demonstrators in the small town of Boscoreale "assaulted 20 policemen and damaged 16 vehicles including eight police cars" during running battles with officers in riot gear wielding truncheons, a Naples police spokesperson said.

There was no word from officials on the numbers of protesters injured.

Five garbage trucks and a police car were set on fire as officers attempted to gain control of the town by firing tear gas, setting up road blocks and calling for reinforcements.

The towns revolt followed the government's decision to go ahead with plans to open a vast garbage dump site in the region.

The Cava Vitiello Dump is planned to be the biggest garbage waste site in Europe with a three-million-ton capacity.

Thursday's violence followed a night of clashes between residents and police in the nearby town of Terzigno as hundreds of masked demonstrators took to the streets with women and children to protest the opening of the new dump.

The inhabitants of Terzigno and several other municipalities in the area are planning to bring their case to Rome on Friday, where they are to hold a rally.

Domenico Auricchio, mayor of Terzigno, travelled to Prime Minister Silvio Berlusconi's residence in Rome and said he hoped to persuade the Italian leader to do something about the crisis.

"Twenty days ago Berlusconi told me he would have found a solution to the second tip," he said. "He promised he would come to Terzigno but he still hasn't," he said.

The leader of Italy's Green party, Angelo Bonelli, who had gone to Terzigno to meet residents, said the crisis was caused by "Berlusconi's lies" and called for the prime minister to resign.

"Italians have been deceived by the Berlusconi government that not only lied about resolving the garbage crisis but still doesn't have a plan to resolve the problem," he said.

Tensions have been rising in the Naples region on this flashpoint issue, which helped Berlusconi to his election victory in 2008 after he promised to stamp out the waste disposal problem in the area.

The European Court of Justice earlier this year criticized Italy, saying it had no adequate system for waste disposal in the Naples region and warning that the problem was a risk to human health and the environment.
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Asian Pacific Markets:

Most Asian markets closed higher, however the Nikkei slipped to 3-week closing low as yen rises.Tokyo shares reversed course by the close as the dollar's gains eased and Europe picked up the weaker cue to open lower. Major stock indexes in Britain, Germany and France fell 0.2 percent to 0.4 percent at the start of trade.

CHINA:

CHINA GROWTH SLOWS - IN LINE WITH EXPECTATIONS
China GDP Data Shows Q3 Growth Ebbed but Still Strong.

China said its economic growth slowed in the third quarter but was a touch stronger than expected. Consumer inflation hit a 23-month high of 3.6 percent in September but was in line with market expectations.

Shanghai's key stock index .SSEC dropped 0.8 percent to 2,980.2 by late afternoon.

Data from China showed the world's fastest growing major economy touched the brakes in the third quarter. Annual GDP growth eased to 9.6 percent from 10.3 percent in the second quarter. Inflation ticked higher and overall the data was broadly in line with expectations.

The Shanghai stock market .SSEC briefly turned positive after the data but quickly surrendered the gains and closed down 0.7 percent as investors took profits on bank shares.

China Mobile's (0941.HK) lacklustre third-quarter results put a dampener on the telecom sector in Hong Kong, pulling shares of the world's biggest mobile operator and those of its rivals lower.

Hong Kong's Hang Seng index .HSI was trading up 0.5 percent.

Bank Of China Eyes Acquisition Of Asean Lenders
Bank of China Ltd. (3988.HK) Vice President Yue Yi said the lender is looking to acquire banks in the Association of Southeast Asian Nations to expand its overseas presence, the state-run Shanghai Securities News reported Thursday.

China Sovereign-Wealth Fund To Invest In Latin America
China's US$300 billion sovereign-wealth fund is keen to invest in Latin America, its president said Thursday, in a sign of China's growing interest in the region.

China Longyuan: Buerjin Tianrun Wind Power Stake Buy Completed

Wind-energy company China Longyuan Power Group Corp. (0916.HK) said in a statement Thursday it completed buying a 60% stake in Buerjin Tianrun Wind Power Co. from Beijing Tianrun New Energy Investment Co.

JAPAN:

Nikkei At 3-Week Closing Low as Yen Regains Strength

Japan's Nikkei average inched down to its lowest close in three weeks on Thursday, erasing early gains after the yen regained strength against the dollar and Shanghai shares drifted down.

The Nikkei had briefly risen in the morning as the yen slipped after U.S. Treasury Secretary Tim Geithner said major currencies were roughly in alignment, but the effect was short-lived as the yen rebounded and dragged down Japanese shares.

"Today's moves showed how nervous investors were about the yen's strength," said Yumi Nishimura, deputy general manager at Daiwa Securities Capital Markets

"Chinese economic data was roughly within expectations, and few people expect the country will have another rate hike soon, but Shanghai stocks are down and external factors are influencing Japanese stocks," Nishimura said.

The benchmark Nikkei .N225 eased 5.12 points or 0.1 percent to 9,376.48, its lowest close since Sept. 30. The broader Topix .TOPX lost 0.4 percent to 820.40.

The Nikkei bounced more than 1 percent to a session high of 9,479.25 at one point in the morning session as the yen dropped on Geithner's comments.

Geithner, in an interview published by the Wall Street Journal on Thursday, said major currencies were now roughly in alignment.

The Nikkei initially jumped as stock market participants thought the yen was being hammered down by currency intervention by Japanese authorities, though the movement appeared to be driven solely by Geithner's comments, traders said. Japanese shares then struggled as the yen started to regain strength, they said.

TODAY'S DECLINE

Trade was moderate, with 1.78 billion shares changing hands on the Tokyo exchange's first section. Declining stocks outnumbered advancers by more than 2 to 1.

Shares of Central Japan Railway Co (JR Tokai) (9022.T) tumbled to their lowest in nearly a year on Thursday, as investors worried the firm may need to issue shares to finance its 5 trillion yen ($61.6 billion) maglev train project.

NTT Data Corp (9613.T) rose 1.5 percent to 250,600 yen after the Nikkei business daily reported the IT services company will buy U.S. firm Keane Inc for more than 100 billion yen ($1.2 billion) as it looks to make a major push into the world's biggest IT market.

KOREA:

The Korea Composite Stock Price Index .KS11 (KOSPI) finished up 0.23 percent at 1,874.69 points on Thursday, still fairly close to the earlier 34 month high of 1,909.01 points.
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WORLD FOREX CURRENCIES SNAPSHOT:
(THURSDAY, OCT 21, 2010 4:30 PM EDT)

EUR/USD     1.3930     -0.0032 (-0.23%)
USD/JPY     81.2900 +0.1900 (0.23%)
GBP/USD     1.5713     -0.0131 (-0.83%)
CAD/USD     0.9736     -0.0046 (-0.47%)
USD/HKD     7.7641     +0.0003 (0.00%)
USD/CNY     6.6502     -0.0016 (-0.02%)
AUD/USD     0.9779     -0.0080 (-0.81%)

WORLD MARKETS SNAPSHOT:
(THURSDAY, OCT 21, 2010 12:30 PM EDT)

Shanghai     2,983.53     -20.42 (-0.68%)
Nikkei 225     9,376.48     -5.12 (-0.05%)
Hang Seng Index     23,649.48     +92.98 (0.39%)
TSEC     8,131.23     +6.61 (0.08%)
FTSE 100     5,757.86     +28.93 (0.50%)
DJ EURO STOXX 50     2,882.29     +30.77 (1.08%)
CAC 40     3,878.27     +50.12 (1.31%)
S&P TSX     12,616.19     -33.73 (-0.27%)
S&P/ASX 200     4,622.90     -2.00 (-0.04%)
BSE Sensex     20,260.58     +388.43 (1.95%)

THURSDAY'S U.S. ECONOMIC CALENDAR:

8:30 a.m.
Oct 16 Unemployment Insurance Claims Report - Initial Claims Weekly Jobless Claims (expected 455K), Net Change (expected -7K), Cont Jobless Claims (prior week) (previous 4399000), Cont Jobless Claims Net Chg (prior week) (previous -112K)

9:00 a.m.
Federal Reserve Bank of St. Louis President James Bullard at Economic Policy Conference

10:00 a.m.
Oct Philadelphia Fed Business Outlook Survey Business Activity (expected 2), Prices Paid (previous 9.8), Employment (previous 1.8), New Orders (previous -8.1), Prices Received (previous -13.9), Delivery Times (previous -4.1), Inventories (previous -16.7), Shipments (previous -7.1)

10:00 a.m.
Sept. Indicators Leading Index (expected +0.3%), Coincident Index (previous 0%), Lagging Index (previous +0.2%)

10:00 a.m.
St. Louis Fed Pres Bullard speaks in St. Louis

10:00 a.m.
Oct 9 DJ-BTMU Business Barometer (previous -0.3%), (52 Wk) (previous +4.3%)

10:30 a.m.
Oct 15 EIA Natural Gas Storage Report Total Working Gas in Storage (previous 3590B), Total Working Gas in Storage (Net Change) (previous +91B)

4:30 p.m.
Oct 11 Money Stock Measures

4:30 p.m.
Oct 20 Foreign US Debt Holdings (previous 3.27T), US Foreign Agency Holdings (previous 735.1B), Foreign Treasury Holdings (previous 2.53T)

4:30 p.m.
Oct 20 Federal Discount Window Borrowings Primary Credit Borrowings (previous 47M), Primary Credit Borrowings W/E Daily Avg (previous 15M), Discount Window Borrowings (previous 49.34B), Discount Window Borrowings W/E Daily Avg (previous 49.12B)

9:45 p.m.
Kansas City Fed Pres Hoenig speaks in Albuquerque, N.M.

US STOCK MARKET SUMMARY, WEDNESDAY, OCT. 20, 2010:

Stocks:
Stocks extended their broad-based rally, as a positive outlook from the financial sector and a spate of strong earnings from airlines helped investors move past the previous day's bruising losses. Materials and energy stocks were the two best performing sectors, a day after both were clobbered by fears over Beijing's attempts to slow the world's second-largest economy.

Treasurys:
Long-dated Treasurys ticked up more as the beige book supported the case for QE2 in November. The 30-year bond hit fresh session highs and was the best performer in the market. The beige book contained little fresh information on the economy, but it supported arguments from many Fed policy makers that the current pace of the economic recovery will be too slow to cut unemployment and goose up overly low levels of inflation. The 10-year note was 6/32 higher to yield 2.456%. The 30-year bond was 24/32 higher to yield 3.872%.

Forex:
The dollar fell sharply as investors unwound Tuesday's dollar-positive positions, reconsidering China's interest-rate increases and seeing them as a reason to embrace risk, not flee it. The dollar was hurt especially in New York trading as hawkish remarks from German Chancellor Angela Merkel about exiting stimulus measures contrasted with new market speculation about a specific plan for Federal Reserve bond purchases.

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