China increases US treasury holdings

China increased its holdings of US treasury securities by $65.9 billion in October, consolidating its place as the No 1 holder of American debt, according to the Treasury's latest report on international capital flows.

The continual increases in US debt holdings in recent months have triggered fierce domestic debate, as the country has channeled almost a third of its $2 trillion of foreign exchange reserves into US treasury securities.

With US treasuries recently gaining investor favor, their yields have been on the decline; but in the long term, they are still a relatively safe investment for China.

Tracking the Dow on Monday,22/12/08

9:30am:--A mild bullish open with a hangman.

There is no economic data scheduled for release today.

10:30am:--A rebound to session MAV.

The overall mood this morning has been generally pessimistic. Toyota Motors (TM) warned it expects to post a loss of approximately $1.68 billion in its fiscal year through March,first ever.

11:30am:--Bearish hangman warning.

Many developers are warning that office complexes, hotels, shopping centers, and other commercial buildings are headed into defaults, foreclosures, and bankruptcies.

12:30pm:--Bullish hammer.

Stocks continue to chop along in negative territory. Hoovering at session low for second time.

1:30pm:--Attempt to rebound to MAV has fall short with another hangman.

President-elect Obama continues to target job creation as a primary goal of the new administration. Creating millions of jobs will come with a heavy price tag, however. Some expect the cost could reach up to $1 trillion.

2:30pm:--Hangman & bullish hammer at session new low.

Stocks briefly pulled up from their session lows, but have succumbed to further selling pressure. This session's weakness has impacted a wide range of stocks, though by varying degree.

3:30pm:--The day's low with a morning star doji.

Stocks spike up.Persistently weak economic conditions prompted the International Monetary Fund to indicate it may cut its economic forecast. The IMF also indicated that a lack of fiscal stimulus could worsen 2009.

4:00pm:--A breakaway bull.

U.S. stocks closed lower in light trading Monday afternoon at the start of a holiday-shortened week.

U.S. retail stocks struggled as investors fretted over fears the Christmas shopping season would be the worst for nearly 40 years, while auto makers fell on concerns the U.S. government bailout would leave GM shareholders out in the cold.

Overall the December month's candlestick is still in a bearish spin.