Compiled 02/10/11 6:00 AM (CT) Statistics: London Gold Fix $1358.75 -$3.75 LME Copper Stocks 396,950 tons +550 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) With March silver forging an initial range down extension in the early Thursday trade, it would appear that the bear camp had the early edge. In addition to slackening macro economic vibes from the UK overnight, the silver market is also seeing weakness in a host of physical commodity markets. Like gold, silver also saw some slightly bearish supply side news overnight, as Peru yesterday suggested that they would remain the world's largest silver producer. Some silver players suggest that a sharp decline in US mortgage applications and another sharp increase in January US foreclosures from yesterday has prompted renewed concern for the US housing sector and that in turn has tempered some of the inflationary psychology that was in place yesterday morning in the wake of the bullish USDA grain report. With strength in the Dollar and weakness in copper and energy prices early today the outside market forces seem to be favoring the bear camp in silver in the early Thursday trade. Comex Silver Stocks were 103.230 million ounces up 177,837 ounces. Silver stocks have declined 13 of the last 20 days. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) While equity markets in Asia were mixed during overnight trading, stock indices in Europe are generally weaker this morning. Early indications are for the US stock market to open with moderate losses today. The Dollar is stronger against most of the major currencies during overnight trading. The Chinese Premier said that he was confident that prices in his nation could be kept stable. The Irish government has postponed a plan to provide 10 billion Euros worth of support for banks in that nation until after a parliamentary election later this month. Japanese Machinery Orders during December were up 1.7%, lower than expectations. UK Industrial Production during December was up 0.5%, in line with forecasts. Major US economic numbers released this morning include Weekly Jobless Claims at 7:30 AM, and December Wholesale Trade at 9:00 AM. The final leg of the US refunding, the 30-Year Bond auction, will have results announced at 12:00 PM. In addition, Fed regional President Lockhart will give a speech during the session.
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