Thread: Latest Market Overview.

Market overview for Thursday, 21st February 2008.



Currencies



The dollar fell on Thursday, touching a two-week low versus the Euro after data showing a surprisingly sharp contraction in regional factory activity stoked fears of a U.S. recession and more Federal Reserve rate cuts.



At the same time, a weekly jobless claims report suggested the labor market was starting to strain from the slowing economy, leaving investors with no reason to buy the dollar.



More U.S. rate cuts would further erode the dollar's appeal to global investors, particularly when central banks in Europe and Australia are either keeping rates steady or raising them.



The Euro rose to two-week highs against dollar at $1.4837, according to Reuters data. Late in the New York session it was trading at $1.4817, up 0.7 percent on the day and posting its biggest one-day advance against the greenback since Jan. 28, at current prices.



The dollar also dropped to two-week lows against a basket of major currencies at 75.485. Falling U.S. stocks dragged the dollar 0.7 percent lower to 107.31 yen.



Against the Swiss franc, the dollar tumbled 1.0 percent to 1.0891.





Energy

U.S. crude oil futures ended lower on Thursday for the first time in six sessions, dropping on data showing inventories rose last week for the sixth week.



Sliding stock prices on Wall Street due to weak economic data deepened concerns about a possible recession and helped spur the sell-off in the energy markets, analysts said.



Gasoline futures tanked as supplies have increased for the 15th consecutive week, lifting inventories to their highest levels since February 1994.



In addition, news from the Energy Information Administration that gasoline production by U.S. refineries this spring may be up to 200,000 barrels per day higher than last year added pressure, traders said.



On the New York Mercantile Exchange, April crude settled down $1.47 or 1.47 percent at $98.23 a barrel, trading from $96.87 to $100.33.



Intraday prices on Wednesday hit $101.32 and settled at $100.74, both records, as the March crude contract expired.





Precious metals

Gold ended higher on Thursday in choppy trade that saw prices hit a historic high on a struggling dollar and supply worries, then gave back some gains on a sharp decline in crude oil prices.



Other precious metals also rose. Silver hit a 27-year high above $18 an ounce, a spike of 22 percent this year, while palladium jumped more than 9 percent to a 6-1/2-year high before paring gains.



"The outlook for gold remains positive given the expectations for continued dollar weakness, further Fed rate cuts and inflationary and macroeconomic concerns," analyst said.



Spot gold rose to $944.40/945.20 an ounce by New York's last quote at 19:15 GMT from $934.80/935.60 late on Wednesday. During the session, gold hit a high of $953.60.





Stock Indices



U.S. stocks fell more than 1 percent on Thursday as bulging oil inventories deflated energy shares and the weakest reading on mid-Atlantic manufacturing since 2001 added evidence the economy was in recession.

Earlier, the Philadelphia Federal Reserve Bank said an index of manufacturing shrank again in the U.S. mid-Atlantic region, in its worst reading in seven years. The data is the latest in a series of indicators pointing to a sharp economic slowdown and the possibility of recession.

Shares of companies that follow the economy's cycles were among the biggest decliners, including General Electric Co, down 1.1 percent to $33.69, and Boeing Co, down 2.4 percent at $82.01.

The Dow Jones industrial average tumbled 142.96 points, or 1.15 percent, to end at 12,284.30. The Standard & Poor's 500 Index slid 17.50 points, or 1.29 percent, to 1,342.53. The Nasdaq Composite Index dropped 27.32 points, or 1.17 percent, to 2,299.78.

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hi,

i was wondering why would you post today 22nd of February a market overview for yesterday 21st of February... interesting...

You should maybe do less posts but check more what you post (my two cents)

rgds