Overnight report for 27th Feb

The Dow opened out the blocks lower as energy weighed as did the lackluster economic data ( weaker jobless claims / stronger inflation / mixed durable goods) then managed to get into the positive. Around the close of European trade the bears awoke and took control taking the mkt down close to 100 pts – shock horror. Then came the final hour, some bids appeared and the bulls managed to circle those wagons taking the mkt back to the flat line helped by the banking names and McD’s. As the dust settled mkts closed down – just – a draw maybe with Cat/Chev/Exx/IBM lagging. The Nas however regained its positive momentum after Wed’s brief blip to close higher helped by Google.
Overnight in Asia a mixed picture in choppy trade taking its cue from Wall St. The Nikkei closed flat giving up early gains on the mixed data and stable YEN, whilst in China markets trade marginally higher – HK is flat. Oil suffered a rout y’day (-5%) on ample stocks but has rallied to trade higher overnight ( $49) Brent trades around $61 with the spread between the two now $12 – sharply higher from parity seen some weeks back. Gold trades flat in quiet trade. The FX mkts see the $ slightly lower after its strong up day y’day, The Euro trades marginally above 1.12 whilst more hawkish comment has seen cable pull away from 1.54. The Yen and Cad suffered but are stable in subdued trade and await their fate. German inflation dominates this morning and the Euro direction whilst across the pond we get the GDP print amongst others. Lloyds Bank have reported this morning and are requesting a return to dividend paying. Futs are called mixed and directionless. Have a great wkend. Good luck.