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Stock futures up as Adu Dhabi bails out Dubia World

Filed in: Equity Update
14 December 2009 at 8:38 GMT

Daily Trading Stance

  • Abu Dhabi has pledged $10bn to the state-owned Dubai World to help the company meet its obligations. Risk appetite increased on the news and stock futures are up.
  • Retail Sales from the US came out slightly better than expected when revisions are taken into account. Business Inventories rose 0.2% led by wholesalers and manufacturers and points to another positive contribution from inventories to Q4 GDP out on the 22nd of December.
  • There are plenty of data out the next 9 days with today being the exception. The next couple of days we will have both US PPI, US Industrial Production, US CPI, and the FOMC meeting.

 Calendar

Economic Data Releases

 

Country

Time (GMT)

Name

Saxo

Consensus

Prior

EC

10:00

Industrial Production MoM (OCT)

 

-0.7%

0.3%

CA

13:30

Capacity Utilization Rate (Q3)

 

66.9%

67.4%

FX

FX

Daily stance

Comment

EURUSD

0/-

Chance rally stalls ahead of 1.4695-1.4710 res for a relook at sub-1.46 lvls. Abv 1.4735 tgts 1.4775.

USDJPY

0

Look for consolidation within 88.45-89.00 parameters. Break abv targets 89.80 again.

EURJPY

0

Consolidating between 129.50 -130.60. N/term prefer buying dips, stop below 129.10.

GBPUSD

0/-

1.6345 next crucial res but seen holding for 1.6270 target. Stop abv 1.6405.

AUDUSD

0/+

Look for more upside, likely targeting 0.9165. Reconsider below 0.9070.

FX Options

FX-Options

Comment

EURUSD

Vols were sold on Friday and having come off a fair bit towards the end of last week, we should expect short date strikes to be supported over the FOMC event risk.

USDJPY

Vols opened the session lower but saw front end getting paid as spot dips under 8900 in Tokyo. 1w is up over a vol and mid curve is also seeing strong bids.

AUDUSD

Gamma continues to be sold this morning and bids are drying up. With front end at such low levels, a more pronounced move in spot is needed to lift vols.

 

Equities

Equities

Daily stance

Comment

DAX

0/-

Sell on rallies towards 5802 targeting 5766. S/L above 5818.

FTSE

0/-

Sell on rallies towards 5300 targeting 5270. S/L above 5319.

S&P500

0/-

Sell on rallies towards 1111 targeting 1105. S/L above 1114.

NASDAQ100

0/-

Sell on rallies towards 1800 targeting 1792. S/L above 1808.

DJIA

0/-

 

Futures

Commodities

Daily Stance

Comment

Gold

0/-

Sell rallies to 1,130 res for 1,110 target, stop abv 1,143.

Silver

0/-

Expect res at 17.30-31 to hold for retracement back to 17.05, stop abv 17.45.

Oil (CLF0)

0/-

Look to sell rally to 69.80 for a test of 69.00 again. Stop abv 70.30.

 

 

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