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US stock market opening report (March 18, 2010, Thursday)

Contributed by Paddy Power Trader

By Paddy Power Trader

European bourses opened lower, on the back of reduced risk appetite following the Greek IMF bailout plans announced overnight. However, moving into the North American open losses have almost been paired. The financial sector is the worst performing. Weakness has been observed in basic materials as well following the strength in the USD index.

German 10-year bund futures open higher and have since fluctuated on large supply from France and Spain. Moving into the North American open, bund futures are trading in positive territory.

Fed’s Fisher said policy makers are “well aware of the risks” that may result from their low interest-rate policy and yet aren’t ready to alter their stance. Fisher also said that the US central bank’s commitment to an “extended period” of low interest rates is not yet in need of change. (BBG/RTRS)

Forex

EUR came under pressure following news that Greece may not get aid from the EU and may have to resort to IMF aid. Also, GBP gained strength across the board following better than expected Public Finances figures from the UK, easing concerns regarding country’s sovereign rating.

The USD, as the world’s leading currency, is unlikely to be replaced by EUR, JPY or CNY, a senior Japanese Finance Ministry official said. Elsewhere, China is conducting CNY stress tests for 12 industries to gauge the possible effect of appreciation on companies, said the China Council for the Promotion of International Trade. (BBG/RTRS)

Commodities

Heading into the North American open, WTI crude futures are trading lower, underpinned by a stronger USD following renewed concerns over Greek debt woes.

In oil related news:

- Kuwait oil minister says likely that OPEC will leave quotas unchanged at October meeting.

- Japan’s oil demand seen falling around 3% in year ending March 2011 due to weak demand for fuel oil from industrial users.

In gas related news:

- Russia is not considering merging its South Stream gas pipeline to Europe with the rival European Union-backed Nabucco link, energy minister Sergei Shmatko said.

- Ukraine wants Russia to charge less for its gas, Deputy PM Tigipko said.

- Liquefied natural gas imports into the UK may decline in March from February, according to a report by PanEurasian Enterprises, as warmer weather dampens demand for the heating fuel.

In other news, the World Gold council expects overall Gold demand to recover in 2010 after 2009 fall, according to WGC official. (RTRS)