Bob Slade's blog

Friday May 9, 2008

Good Morning:

Last night’s jump in oil prices and continued concerns over the equity markets contributed to the dollar’s weakness overnight.

Oil rose over $125/barrel as attacks against Nigeria’s oil supply continue, and speculation that this may lead to lower exports by Nigeria-thus curbing US supplies as the summer driving season starts Memorial Day Weekend.

World Equity markets are ending the week on a lower note.

US futures are lower this morning.

Oil: $125.12

Gold: $887.00

Thursday May 8, 2008

Good Morning:

Both the ECB (European Central Bank) and BOE (Bank of England) left their benchmark interest rates unchanged this morning.

The Euro lost ground as speculation mounts that the ECB may need to lower interest rates in the near future to combat a slowing economy. The markets will be waiting for the statement from the ECB regarding future interest rate movements.

The GBP was a touch stronger as the BOE left interest rates unchanged as they monitor the impact of past interest rate cuts.

Wed.  May 7, 2008

Good Morning:

The dollar pushed up as comments by Fed President Hoenig regarding inflation and interest rates, along with a drop in European retail sales helped the greenback today.

World equity markets were mixed, with Asia lower and Europe higher.  US futures are lower this morning-ahead of the data on home sales this morning.

Oil: $122.22

Gold: $871.60

Data Today:

Tuesday May 6, 2008

Good Morning:

The dollar took a dive across the board as Fannie Mae reported a $2.19Bil loss for the 1^st Qtr.  The loss was larger than expected.  Fannie Mae is expected to cut its dividend and raise $6Bil of outside capital.

Stocks in Asia and Europe fell on poor results from UBS and Swiss Re.

US Futures are also lower this morning.

Oil: $ 119.64

Gold: $ 877.40

No Major Economic Data due today.

Monday May 5, 2008

Good Morning and Happy Cinco De Mayo

Today is a London Bank Holiday which is contributing to a very quiet market.

The euro saw some strength this morning, as speculators bet that the ECB will leave rates unchanged this week as they continue to combat any sign of inflation in the eurozone.

Equity markets are mixed this morning.

US Futures are also lower after Microsoft ended its bid for Yahoo, and Berkshire Hathaway’s earning were not as good as expected.

Oil: $116.85

Gold: $868.20

Friday May 2, 2008

Good Morning:

The dollar continued to strengthen in overnight trading.  Weak retails in Germany, along with the UK Construction PMI Index falling-all assisted in the dollar moving up.

Stocks rose in Europe and Asia as speculation that the troubles in the financial markets may be subsiding.

US Futures also rose pointing to a higher opening.

Oil: $113.04

Thursday May 1, 2008

Good Morning:

The greenback advanced after the Fed lowered the benchmark interest rate to 2%.

Speculation the Fed will pause lowering interest rates helped the dollar to rise.

Today’s market activity overseas was very thin as many European and Asian markets are off for the May Day holiday.

Most world equity markets were closed today for the May Day holiday.

UK markets and US futures are higher this morning.

Oil: $113.18

As expected, the FOMC cut interest rates by 25 bps to 2%

We will await the FOMC's policy statement to get a clue as to their future plans regarding interest rates.

Wed April 30, 2008

Good Morning:

The greenback is stronger across the board as speculation that the Fed may signal an end to its easing policy after today’s FOMC meeting.

Also today the euro weakened as German unemployment fell less than expected.

World Equity markets were lower as earnings from Time Warner and SAP disappointed investors.

US Futures are also lower following the Time Warner earning report.   

Oil: $115.73

Tuesday April 29, 2008

Good Morning:

The dollar advanced today as the FOMC begins a 2 day meeting, culminating in an interest rate announcement on Wed April 30.  Speculation that the Fed may signal they are close to pausing their interest rate reductions caused the dollar to rise.

Equities in Asia and Europe dropped as earnings forecasts are disappointing investors.

Oil: $117.55

Gold: $885.30

We have data on consumer confidence at 10AM