Dartline™ First Look – morning directional planner
March 9, 2010, 7:00 am EST — The Standard & Poor’s 500 index futures down 4.80 to 1132.20, as Britain’s FTSE 100 index was down 0.4 percent at 5,584.32, Germany’s DAX down 0.3 percent to 5,856.79 and France’s CAC-40 down. 0.3 percent to 3,892.31. In Asia, markets were cautious ahead of key reports on the region’s two biggest economies, China and Japan, that are due Wednesday. The strength of Chinese trade data could give investors a better sense of when and how Beijing will wean the country off its economy-boosting measures. A report on Japanese machinery orders, a key gauge of company spending, could provide more insight into the state of global trade and the world’s second-largest economy. Tokyo’s Nikkei 225 stock average fell 18.27 points, or 0.2 percent, 10,567.65. Hong Kong’s Hang Seng added 0.1 percent to 21,207.55 and South Korea’s main benchmark edged up 0.1 percent to 1,660.83. Shanghai’s market climbed 0.5 percent, while markets in Australia, Taiwan and Singapore rose as well. India’s market was down. … Meanwhile, Greek Prime Minister George Papandreou was due to meet President Barack Obama later Tuesday to discuss stricter regulations on hedge funds and currency traders that Athens believes aggravated their crisis. Pledges of support for Greece from France and Germany over the weekend lacked concrete details, and investors will keep an eye on the country’s financial markets — particularly the rate at which is can raise money on capital markets — for signs that confidence in being restored. Greece last week raised euro5 billion ($6.83 billion) in a 10-year bond sale, but the 6.25 percent rate it paid is still considered too high. The country would like to borrow at more moderate rates. To avoid future fiscal crises, France and Germany have floated the idea of creating a European monetary fund which would have the authority to enforce budget cuts and offer funds to countries facing debt trouble. Such a fund, however, would not be of help to Greece now as it would take months to agree. … Oil prices slipped to near $81 a barrel, losing momentum after a 4-week run-up fueled by growing investor optimism about global economic growth. Benchmark crude for April delivery was down 84 cents to $81.03 a barrel after adding 37 cents overnight. The dollar was lower at 89.76 yen from 90.28 yen and the euro weakened to $1.3590 from $1.3631. — Maintain resistance for the S&P 500 index at 1150.41 and support at 1102.80. International markets suggest a step back and allow the events to unfold. Since markets are driven by the carry trade, low volume and lack of new money, US stocks require a major catalysis to keep moving higher. However, enough noise is available to not anticipate a sharp drop in values. Manipulation is alive and well — got with the trends and stay focused as what is really happening.
