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US stock market opening report (March 11, 2010, Thursday)

Contributed by Paddy Power Trader

By Paddy Power Trader

Pimco’s El-Erian said deteriorating public finances may affect the global economy more than is currently realised. (BBG)

Elsewhere, Dubai World will present its first concrete proposals to local banks today on restructuring USD 22bln in debt, according to unnamed sources. (The National newspaper)

New York State may have to borrow to smooth a path back to financial health over the next few years, its lieutenant governor said on Wednesday, highlighting the severity of the fiscal trouble facing US states in the wake of the financial crisis and economic recession. (FT)

Indices And Company News

European bourses opened in minor negative territory and for the majority of European session no substantial moves have been observed in European equities due to a relatively quiet European session. Moving into the North American open, European equities are trading in slight negative territory ahead of the jobless figures from the US later in the session.

Forex

GBP received strength following latest BOE’s Inflation Attitude Survey that showed UK inflation expectations for year ahead rose (refer to Gilts section). In other news, the USD index entered into the European higher as WTI crude futures lost strength as a consequence of rise in Chinese inflation and worse than expected Japanese GDP figures. However, moving into the North American open the USD index pared earlier gains due to lack of risk-averse economic news from Europe.

Commodities

Heading into the North American open, WTI crude recovered overnight losses to trade marginally higher as the USD index moved to unchanged on the session.

In oil related news:

China’s January implied oil demand jumped by record 23% Y/Y, but slipped 2.6% M/M.

Russia oil export tax may rise to by as much as 6.2% to USD 268.40-269.40 per tonne on April 1.

In geopolitical news:

Libya is considering giving priority to Chinese and Russian companies over US energy companies because of its diplomatic row with Washington.

Iranian President Ahmadinejad warned Gulf countries against the US presence in the region, saying Washington aimed to dominate their energy resources in the name of fighting terrorism.