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EUROPEAN STOCKS: Spreadbetters paring back opening calls. Major European bourses are now initially seen trading just modest higher Friday. Spreadbetters are calling the FTSE up 7, the CAC up 4 and the DAX up 5.
US STOCKS: The Dow Jones Industrial Average closed down 3 pts or flat at 12415.70 and the Nasdaq Composite closed up 22 pts or 0.81% at 2669.86. The Dow Industrials are up 1.6% ytd and the Nasdaq Composite up 2.5%. US index futures are trading modestly lower in Asian trade Friday. The S&P Mar contract was last down 2.8 points at 1270.3, with the Nasdaq Mar contract lower by 2.0 points at 2337.5. Dow futures are also lower, down 18 points at 12313.
JGBS: Japanese government bond prices were mixed on Friday as their early small gains were erased by profit-taking ahead of the U.S. jobs data release and a long weekend in Japan. The yields on super long-term bonds rose in the wake of profittaking by investors. But JGB price moves were small as bond players were reluctant to actively trade bonds amid no fresh factors. The benchmark 10-year yield was 0.5 bps lower at 0.980%
JAPAN STOCKS: Japan's benchmark stock indices ended Friday's session lower. The Nikkei ended down 98.36 points, or 1.18%, to stand at 8390.35. The broaderbased TOPIX was lower by 6.70 points at 729.58. Preliminary volume in the Nikkei stocks totalled 880.2 mn shares, with 12 issues higher, 206 lower and 7 unchanged.
FX MARKETS: Euro-dollar opened in Asia at $1.2789 having been as low as $1.2770 ahead of the NY close, amid a heavy tone following strong ADP jobs data, with investors now seemingly preferring the dollar over European and emerging assets. Fears that European banks may need some fresh capital, concerns over Hungary, and a possible French downgrade are all destroying any risk appetite in the market. Euro was tightly pinned into a $1.2783-99 range with traders now cautious ahead of Monday's Sarkozy/Merkel meeting. Cable was a similar story hovering between $1.5490-5508, with the cross even tighter through stg0.8250-57. Dollar-yen held up above Y77 overnight but failed to make any significant upward progress edging up to Y77.21 from Y77.07 with the cross marginal firmer through Y98.58-79. Aussie faired little better trading $1.0240-65 as the market generally puts itself on hold ahead of this afternoon's US non farm payroll data, where expectations are for a stronger number in excess of 150k.
OIL: Crude futures nudging lower in Asian trade but shy of the session worst levels. The front-month WTI contract was last trading 24 cents lower on the day at $101.57, having traded a range of $101.31 to $101.71.
Technical Analysis
BUND: (H12) Recovers 5-DMA
 Click on image to enlarge!
RES 4: 139.65 High 10 Nov
RES 3: 139.45 Bollinger band
RES 2: 139.31/33 Highs 4 Oct, 2 Jan, 15 Nov
RES 1: 138.98 High 5 Jan
PREVIOUS CLOSE: 138.59
SUP 1: 138.38 5-day moving average
SUP 2: 137.70/78 Low 5 Jan, 21-DMA
SUP 3: 136.69/85 Low 21 Dec, 55-DMA
SUP 4: 136.22/35 Bollinger band, 100-DMA
COMMENTARY: H12 recovers the 5-DMA as the daily studies turn more mixed - the stochastic study edging back out of overbought territory and 10-day momentum recovering from the zero line. The bulls managed to hold above the 21-DMA and are now focused back on the Dec/Jan highs.
Eurostoxx50 Techs: Studies Show Signs of Fatigue
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RES 4: 2506.2 High 28 Oct. 200-day moving average
RES 3: 2402.3 76.4% retracement of Nov pullback
RES 2: 2388/92.2 Bollinger band, High 3 Jan
RES 1: 2349.0 5-day moving average
PREVIOUS CLOSE: 2315.8
SUP 1: 2308.9 Low 5 Jan
SUP 2: 2283.0 21, 55-day moving averages
SUP 3: 2249.9 Low 29 Dec
SUP 4: 2241.0 100-day moving average
COMMENTARY: Daily studies show signs of fatigue as the market pulls back from the Bollinger band towards the 21-day moving average.
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