Futures Market
Futures Up As Dow Drops
Feb 9th
As the Dow drops below the 10,000 mark, futures are moving up. This commentary can be helpful to your trading.
Stock Futures Pointed Higher
Stock futures are higher, an indication that the Dow Jones Industrial Average’s drop below the key 10,000 line in the previous session is in fact, luring some buyers back into what’s been a choppy market over several sessions.
At last check, the S&P 500 futures rose 7 points, while Nasdaq 100 futures are up 12 points and DJIA futures rose 50 points. Asia and Europe gained.
Stocks fell Monday for the third time in four days. Part of the pressure on equities derived from Wall Street Journal report that Federal Reserve Chairman Ben Bernanke will begin laying the groundwork for credit tightening later in the year. Ongoing worries over the debt health of some European nations also weighed.
News that European Central Bank President Jean-Claude Trichet was leaving a summit in Sydney a day earlier than planned helped to lift the euro and European equities on Tuesday, MarketWatch reported.
A spokesman for the ECB said Trichet was always planning to attend a summit of European leaders scheduled for Thursday, but the market interpreted Trichet’s departure as increasing the chances for a European bailout package later this week, the MarketWatch report said.
As for individual pre-market movers:
Electronic Arts (ERTS) is down nearly 8% in continued negative reaction to its evening earnings. The company beat with Q3 earnings but offered several quarters and FY guidance that’s mostly below the Street view.
Cell Therapeutics CTIC) is off to a robust start after the company announced the FDA informed them that due to severe weather conditions in the Washington, D.C. area, the FDA is postponing the Oncologic Drugs Advisory Committee meeting that was to be held on Wednesday, February 10, 2010 to discuss the pixantrone New Drug Application. The FDA indicated that it intends to reschedule the meeting as soon as the FDA can determine a schedule that will allow them to reconvene the advisory panel. –more
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Commodities Set To Rise This Year
Jan 4th
Commodities are positioned to rise because of the economic growth that has occurred. This is important information for traders to know because of how commodities can effect other markets.
Commodities prices set to rise further on back of global growth
Commodities prices are set to rise further this year as the global economy expands faster, the International Monetary Fund has forecast, following the biggest annual price increase for raw materials in nearly four decades in 2009.
The IMF said that commodities prices were set to remain high by historical standards over the long term as the industrialisation of emerging countries supports consumption.
“Accommodating this demand will eventually require further capacity expansion in many commodity sectors, with some need to tap higher-cost sources,” it said in a report.
In the shorter term, Thomas Helbling, an IMF economist who specialises in commodities, said global activity was widely expected to expand at a faster pace in 2010, putting upward pressure on prices. –more
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Gold Market News
Dec 17th
Image via Wikipedia
Gold has been souring in recently years. Information about gold is very important. Here are a couple of articles that explain some reasons for gold fluctuating prices.
Asia, Europe, Gold, US Down As Citi’s Weak Secondary Reveals Limits To Liquidity
Was it the weak pricing of the Citigroup (C) secondary that reminded people that even with all the money pumping in the world, there’s technically not an unlimited amount of cash out there for the taking?
Possibly.
The market’s shown impressive resilience — ignoring Dubai, Greece, and Austria — all because it’s had faith in liquidity. That’s the one silver bullett that could kill the rally dead. –more
De-hedging key reason for increase in gold prices
De-hedging by gold producers has emerged as one of the prime reasons for the rise in gold prices, analysts said.
A total of 105 tonnes of gold was de-hedged by producers in the third quarter of 2009 and it played a tremendous in raising the price of gold by nearly $50 an ounce. Though the volume of gold de-hedged – primarily by companies like global miner Anglo Gold Ashanti and Canadian miner Barrick Gold – in the final quarter of 2009 is expected to be large, no data in this regards is available as yet.
The bullion rose by almost $200 an ounce in the final quarter of 2009.
“De-hedging by miners is one of the prominent reasons for the rise in gold prices. The producers initially held their expected god production with an expectation that gold prices will fall in future. They then de-hedge when they expect prices to rise in future,” said Rozanna Wozniak , the investment research manager with the World Gold Council. “The amount of gold de-hedged by producers steadily rose from the first to the third quarter of 2009.” –more
Related gold market articles
- Gold at 5000 an ounce? Don’t disgard it (telegraph.co.uk)
- Gold at $2,750 an ounce? Here’s how it could happen (dailyfinance.com)
- Buyers spurn gold for silver (telegraph.co.uk)
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