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US stock market opening report (March 19, 2010, Friday)

Contributed by Paddy Power Trader

By Paddy Power Trader

European bourses opened in positive territory, led by financials as Lloyds said its trading has been strong in the first 10 weeks of 2010. However, equities came under pressure later in the session following concerns regarding Greece not being able to get financial aid from the EU. Also adding to volatility is the fact that it is quadruple witching day today.

German 10-year government bund futures gained strength into the European open on the back of ongoing concern regarding failure of Greece to get aid from the EU that led to widening of Greek/German 10-year government bond yield spread.

Forex

CNY is destined to become a global reserve currency rivalling the USD and the EUR, as the nation’s economic power increases the currency’s allure, according to the chief economist of Goldman Sachs, Jim O’Neill. (BBG)

Heading into the North American open, a strengthening USD has pushed Crude Oil prices lower.

Commodities

Russia has announced it will start up the reactor it is building in Iran’s first atomic power plant in mid-2010, prompting immediate criticism from US Secretary of State Hillary Clinton.

Barclays Capital expects Crude Oil futures to move into backwardation in the next few months as inventories fall.

In corporate news:

- Royal Dutch Shell have announced a significant oil discovery in the Gulf of Mexico.

- BP says ultraformer at 455,790 BDP Texas City refinery will halt production during equipment repair.

- Chevron says 279,000 BPD El Segundo, California refinery operating normally after issues with instrument air system resolved.

- Arrow Energy was halted from trading in Sydney amid speculation that Royal Dutch Shell and Petrochina will sweeten their USD 3 bln takeover offer.