Daytrading, Eminis, Forex trading, Swing Trading MARKET ANALYSIS - 484959

Further, the multi-billion dollar M A transactions announced earlier in the day is expected to give a positive momentum to the markets. Earnings news has also been supportive of the momentum. Despite the current positive sentiment, any potential gains are likely to be muted due to the forthcoming elections, scheduled for Tuesday.

The markets appear to have priced in a scenario, where the Republicans will lose control of the House but retain the Senate. Analysts believe that a loss for the Republicans both in the House and the Senate will lead to short term selling, while in the contrary, if the Republicans retain both, a bounce back is expected. The markets moved lower in the week ended November 3rd due to concerns of slowing growth and an aggravation of inflationary pressures.

The Dow Industrials fell 0.86% for the week after being down for six straight sessions. The S P 500 Index declined 0.

95% for the week, while the Nasdaq Composite Index lost about 0.84%. Last week, one of the worst performances came in from Wal-Mart Stores ( | | | ).

The index fell 6.3% for the week ended November 3rd compared to a 2.6% drop by the S P Retail Index.

Crude futures for December delivery are currently trading down $0.22 a barrel at $58.92.

Despite Friday's spike, oil settled the week ended November 3rd at $59.14 a barrel, a loss of 2.65% for the week.

Gold futures are currently trading at $625.60, a decline of $3.60 an ounce.

The U.S. dollar is currently firming up against the euro and is trading at 1.

2707, while it is fetching about 118.38 yen. Last week, the dollar posted marginal gains against the euro and the yen.

The dollar traded at $1.2716 at the close of trading on Friday, down 0.20% from $1.

2742 in the previous week. The greenback also firmed up against the yen and rose 0.35% to 118.

01. On Monday, the major Asian markets traded higher except the Malaysian, Taiwan and South Korean markets. The Japanese markets, which opened after a day's break, advanced marginally on Monday.

The Japanese Nikkei 225 average gap-opened lower and languished in negative territory, but it moved into positive territory in the afternoon session, aided by some buying in select stocks in the steel and auto spaces. The index closed up 14.74 points or 0.

09% at 16,365. Asahi Glass and Asahi Ksaei climbed 4.73% and 3.

75%, respectively. Casio Computer soared 6.71%.

Telecom operator KDDI climbed 2.18%. Konica Minolta was the best performer among the index constituents, gaining 11.

12% in the session. Sumitomo Heavy Industries rallied 4.96%.

Among automakers, Isuzu Motors gained 2.44%, Honda was up 0.72% and Toyota Motors gained 1.

01%. Steel stocks Japan Steel Work and Nippon Steel rose 3.25% and 1.

67%, respectively. On the other hand, Marui slumped 8.82%.

All Nippon Airways slipped 2.48% and Fast Retailing declined 2.66%.

Heiwa Real Estate lost ground by about 3.20%. Sanyo Electric fell 3.

14%, while Sharp declined 1.63%. Yahoo Japan slipped 4.

79%. Hong Kong's Hang Seng Index, which traded close to the unchanged line in early trading rose strongly thereafter before ending at a fresh closing high. The index surged up 186.

86 points or 1% to 18,937. HSBC Holdings rose 0.33% and Hang Seng Bank gained 0.

35%. Among property stocks, Cheung Kong rose 0.64%.

Henderson Land was up 0.79%and New World Development edged up 0.30%.

Shopping Property gained 0.91%, while Hang Lung Property jumped 2.31%.

China Mobile and China Netcom soared 3.38% and 1.18%, respectively.

However, FIH declined 1.09%. The South Korean Kospi opened lower and declined further before moving sideways.

However, the index recouped part of its losses and finished well off the lows of the session. The Kospi closed down 0.34% or 4.

69 points at 1,379. Tech stocks Samsung Electronics and Hynix Semiconductor declined 0.98% and 0.

15%, respectively, as foreign institutional sellers offloaded these shares. However, a climb in crude prices on Friday helped lift refiner SK Corp. by over 1%.

Australia's All Ordinaries hovered in positive territory for most of Monday's session except for a hiccup in early trading. The index closed at 5,410, a gain of 13.20 points or 0.

24%. Energy stocks advanced strongly, while materials and metals mining stocks also posted modest gains on Monday. However, consumer discretionary, consumer staple, healthcare, property trust, telecom and utility stocks came under some selling pressure.

Mixed sentiment prevailed in the banking space, with Westpac and National Australia Bank trading higher, while ANZ and Commonwealth Bank lost ground in the session. Among miners, Rio Tinto weakened, while BHP Billiton firmed up. Media giant News Corp.

rose after it unveiled a partnership with Softbank to provide its MySpace.com online service. India's Sensex rose 56.

10 points or 0.43% in Monday's session, aided by solid support provided by FMCG and metal stocks. On the flipside, public sector unit, auto and bank stocks came under some selling pressure.

The major European markets are trading higher on Monday. The French CAC 40 Index is trading up about 0.49% compared to a 0.

73% advance by the German DAX Index. The U.K.

FTSE 100 Index is currently gaining 0.76%. Alcatel is leading the market's advance in Paris, as the telecom equipment manufacturer is gaining over 2.

5%. Insurers AGF and Axa are gaining over 1%, each. Index heavyweight and oil giant Total is moving up about 1.

05%. However, Mittal Steel is declining over 1.25% after it reported that third quarter combined profit climbed 75% to 17.

1 billion pounds, as sales rose 37% to 22.06 billion pounds. Schneider Electric is the worst decliner in the session, losing about 1.

50%. Vivendi is retreating over 1% after it said talks for a buyout offer by Kohlberg Kravis fell through. The German stocks are advancing on a broad based rally, with select few stocks such as Deutsche Telecom and Fresenius Medical Care bucking the uptrend.

Adidas and Muenchener Rueckvers are gaining over 2% each. Linde is up 1.26% after it agreed to sell its forklift unit to a consortium of private equity buyers consisting of Kohlberg Kravis and Goldman Sachs for 4 billion euros.

The U.K. markets are also witnessing broad based buying interest, with stocks across sectors posting gains.

Prominent gainers in the session are Amvescap, Unilever, Yell Group, Kazakhmys and Vedanta Resources. The U.K.

National Statistical Office revealed that industrial production remained unchanged in September. Manufacturing output rose 0.2% and production of mining and quarrying sector increased 2.

8% due to a rise in oil production, while utility production eased 0.3%. Among the services sector purchasing managers' indexes released today, the index for the euro zone region fell to 56.

5 in October from 56.7 in September. The index for input prices dropped to 56.

9, its lowest level since June 2005. Germany's service sector purchasing managers' index fell to 54 in October from 54.4 in September.

A report released by the Eurostat on Monday indicated that the producer price index in the euro zone area declined 0.5% in September. This compares to a 0.

1% gain in August. Producer prices excluding the energy sector edged up 0.1%, as prices in the energy sector slumped 2.

5%. Prices of capital goods were up 0.2% in September, while prices for non-durable consumer goods eased 0.

1%. In the upcoming week, the economic calendar is relatively light. The most prominent report scheduled to be released is the September trade balance.

Traders are expected to focus on it to see if there is any chance for an upgrade to the third quarter GDP figures. Economists expect some reprieve to the mounting trade deficit due to an easing in oil prices. The energy-related relief to the trade deficit is expected to offset any potential gains in other imported goods such as electronics and clothing.

Another supporting argument for a contraction in the deficit is the burgeoning growth of the global economies, which is expected to stimulate demand for U.S. goods.

Further, focus is also likely to be on the weekly claims for unemployment insurance, as it rose steeply in the week ended October 28th, signaling that the labor market may be responding to the slower growth. Apart from that, other reports that could impact trading during the week are the Import and Export prices for October, the preliminary reading of the University of Michigan's Consumer Sentiment Index for November and the Wholesale Trade report for September. The Chicago Fed President Michael Moskow is scheduled to address business leaders in Chicago at 8 AM ET on Monday.

On the same day at 7.10 PM ET, the San Francisco Federal Reserve Bank President Janet Yellen is expected to give an economics of governance lecture at the Irvine campus of the University of California. El Paso ( | | | ) is trading marginally lower in Monday's pre-market trading after it reported that it reversed to a profit of 18 cents per share in its third quarter compared to a loss of 50 cents per share in the year-ago period.

The recent third quarter's results include a gain of 4 cents per share of mark to market gains on derivatives. Revenues were up 40.1% to $1.

06 billion, shy of the consensus estimate of analysts polled by research firm First Call/Thomson Financial. XM Satellite Holdings ( | | | ) is rallying in Monday's pre-market trading after it said its third quarter revenues jumped 57% to $240 million, ahead of the consensus estimate of $235.25 million.

The company's subscriber base increased 43% in the recent quarter. The company's net loss narrowed to 32 cents per share from 60 cents per share reported last year. Looking forward, the company targets total subscribers of about 7.

7-7.9 million before the end of the year. Medical device maker Boston Scientific Corp.

( | | | ) could see some buying interest after the U.S. Food and Drug Administration approved the NexStent Carotid Stent and Monorail Delivery System for use in carotid artery disease patients who are at high risk for surgery.

Shares of Four Seasons ( | | | ) are expected to see some buying interest after it announced that its board of directors has received a buyout proposal valuing the company at US$3.7 billion. This proposal values the company at US$82.

00 per share, representing a 28.4% premium over the closing price of company' Limited Voting Shares on the New York Stock Exchange on November 3, 2006 and a 33.1% premium to the weighted average closing price over past six months.

Per-Se Technologies, Inc. ( | | | ) may rally after it said that it will be acquired by McKesson ( | | | ) for $18 billion or $28 per share. Abbott Labs ( | | | ) may come under pressure after it revealed an agreement to acquire Kos Pharma ( | | | ) for $3.

7 billion or $78 per share. Avnet ( | | | ) is expected to react to its announcement to acquire Access Distribution from MRA Systems, a subsidiary of General Electric ( | | | ) for $412.5 million in cash.