CL Redux
- Thread starter schizo
- Start date
http://www.marketwatch.com/story/us-stock-futures-up-with-fed-dollar-in-focus-2011-04-25
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MADRID (MarketWatch) â U.S. stock futures were pushing higher on Monday, with a focus on a weaker dollar and higher prices for precious metals, as investors looked ahead to this weekâs Federal Open Market Committee meeting.
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1/ The week will be packed with data -- the new-home-sales report for March is scheduled for 10 a.m. Eastern on Monday.
However, investors are expected to zero in on the Federal Open Market Committee meeting Tuesday and Wednesday and the news conference by Fed Chairman Ben Bernanke to follow.
2/ Action was dulled somewhat by a dearth of activity in Europe, with markets closed for the long Easter weekend break. Australia and Hong Kong markets were also closed
3/ In thin trading conditions on Monday, the dollar was mostly lower, dipping to a fresh 29-year low against the Australian dollar. The dollar index, which measures the greenback against a basket of six rivals, was down 0.2% to 73.935.
The dollar has been under pressure recently on investor perception that the U.S. Federal Reserve will maintain low interest rates for some time. Read Fed, Bernanke on investors' radar this week
4/ And when investors get nervous about the dollar, they turn to precious metals like gold and silver.
Precious metals were also driven higher amid renewed violence in the Middle East over the weekend and some reports that China may tap its $3 trillion foreign-exchange reserves stockpile to launch special commodity and forex funds to soak up excessive liquidity.
5/ In Asia, Chinese stocks fell on concerns Beijing may continue to tighten monetary policy, while Japanese shares ended lower as investors worried about corporate outlooks in the wake of the March 11 earthquake and tsunami.
<b>
MADRID (MarketWatch) â U.S. stock futures were pushing higher on Monday, with a focus on a weaker dollar and higher prices for precious metals, as investors looked ahead to this weekâs Federal Open Market Committee meeting.
</b>
1/ The week will be packed with data -- the new-home-sales report for March is scheduled for 10 a.m. Eastern on Monday.
However, investors are expected to zero in on the Federal Open Market Committee meeting Tuesday and Wednesday and the news conference by Fed Chairman Ben Bernanke to follow.
2/ Action was dulled somewhat by a dearth of activity in Europe, with markets closed for the long Easter weekend break. Australia and Hong Kong markets were also closed
3/ In thin trading conditions on Monday, the dollar was mostly lower, dipping to a fresh 29-year low against the Australian dollar. The dollar index, which measures the greenback against a basket of six rivals, was down 0.2% to 73.935.
The dollar has been under pressure recently on investor perception that the U.S. Federal Reserve will maintain low interest rates for some time. Read Fed, Bernanke on investors' radar this week
4/ And when investors get nervous about the dollar, they turn to precious metals like gold and silver.
Precious metals were also driven higher amid renewed violence in the Middle East over the weekend and some reports that China may tap its $3 trillion foreign-exchange reserves stockpile to launch special commodity and forex funds to soak up excessive liquidity.
5/ In Asia, Chinese stocks fell on concerns Beijing may continue to tighten monetary policy, while Japanese shares ended lower as investors worried about corporate outlooks in the wake of the March 11 earthquake and tsunami.
http://www.reuters.com/article/2011/04/25/markets-commodities-idUSL3E7FP0SU20110425
1/ Markets are looking to a news conference by U.S. Federal Reserve Chairman Ben Bernanke on Wednesday after the bank's two-day policy meeting to see how the central bank plans to exit from its super-easy monetary policy, and the impact this will have on the U.S. currency.
"It's the dollar play," said a precious metals dealer based in Singapore.
A falling dollar not only makes gold cheaper for holders of other currencies, it increases the attraction of the metal as a hedge against further dollar weakness.
Spot gold stood at $1,516.70 an ounce by 0725 GMT, off the earlier high, while silver was at $49.13.
2/ CRUDE FUELLED BY MIDDLE EAST UNREST
Brent crude futures rose above $124 a barrel after violence in Syria and Yemen escalated over the weekend, boosting fears that unrest may disrupt more oil supplies in the Middle East and North Africa.
Brent LCOc1 gained 40 cents to $124.40 a barrel by 0725 GMT. U.S. crude CLc1 rose 49 cents to $112.78 a barrel.
"There is no question about it -- Middle East and North Africa continue to be the key factors," said Victor Shum, an analyst at Purvin & Gertz. "Violence has spread beyond Libya to Syria and Yemen and that has set a high floor for oil prices."
3/ Gains in oil this week are likely to be capped on concerns of the negative impact of high prices on demand and the global economy. Prolonged protests and looming concern over further disruptions would keep markets on edge since fuel demand in key consumers, such as China and India, continues to rise.
4/ In Shanghai, copper was weighed down by worries about credit conditions in China, consumer of 40 percent of world copper. The metal tracked losses of as much as 1 percent in U.S. futures when trade resumed after a holiday weekend.
1/ Markets are looking to a news conference by U.S. Federal Reserve Chairman Ben Bernanke on Wednesday after the bank's two-day policy meeting to see how the central bank plans to exit from its super-easy monetary policy, and the impact this will have on the U.S. currency.
"It's the dollar play," said a precious metals dealer based in Singapore.
A falling dollar not only makes gold cheaper for holders of other currencies, it increases the attraction of the metal as a hedge against further dollar weakness.
Spot gold stood at $1,516.70 an ounce by 0725 GMT, off the earlier high, while silver was at $49.13.
2/ CRUDE FUELLED BY MIDDLE EAST UNREST
Brent crude futures rose above $124 a barrel after violence in Syria and Yemen escalated over the weekend, boosting fears that unrest may disrupt more oil supplies in the Middle East and North Africa.
Brent LCOc1 gained 40 cents to $124.40 a barrel by 0725 GMT. U.S. crude CLc1 rose 49 cents to $112.78 a barrel.
"There is no question about it -- Middle East and North Africa continue to be the key factors," said Victor Shum, an analyst at Purvin & Gertz. "Violence has spread beyond Libya to Syria and Yemen and that has set a high floor for oil prices."
3/ Gains in oil this week are likely to be capped on concerns of the negative impact of high prices on demand and the global economy. Prolonged protests and looming concern over further disruptions would keep markets on edge since fuel demand in key consumers, such as China and India, continues to rise.
4/ In Shanghai, copper was weighed down by worries about credit conditions in China, consumer of 40 percent of world copper. The metal tracked losses of as much as 1 percent in U.S. futures when trade resumed after a holiday weekend.
out .67
fed meeting/weak dollar and upside S&P keeping OIL higher
fed meeting/weak dollar and upside S&P keeping OIL higher
SS 113.28
