Stocks fell for a third day on Monday on growing concerns that Europe's debt problems will hamper a global rebound. The Dow Jones industrial average fell about 80 points in late morning trading. The Dow fell 81.4 points, or 0.8%, to 10,538.6. It has fallen seven of the last nine days.
Stocks fell after the euro, which is used by 16 countries in Europe, fell to a four-year low. Investors are questioning whether steep budget cuts in countries including Greece, Spain and Portugal will hinder an economic recovery in Europe and in turn, the US traders are also concerned that loan defaults could ripple through to banks in stronger countries like Germany and France.
The austerity measures are required under a nearly $1 trillion bailout programme the European Union and International Monetary Fund agreed to last week. The rescue package provides access to cheap loans for European countries facing mounting debt problems.
The euro fell to as low as $1.223 early Monday before moving higher. The plunging euro has been driving trading around the globe in recent days. The weakness in the euro has helped boost the value of safe-haven investments like the dollar, Treasuries and gold. It has also driven commodities like oil lower.
Oil fell below $70 a barrel for the first time since February. Oil is priced in dollars so a stronger dollar deters investment in oil. Crude oil fell $1.76 to $69.8 per barrel on the New York Mercantile Exchange. That hit shares of energy companies.
A disappointing report on regional manufacturing from the New York Federal Reserve weighed on sentiment. A forecast from home-improvement retailer Lowe's Cos also fell short of expectations. The questions about Europe overshadowed other news and dominated trading. Investors in the US who had been growing more confident about a rebound in this country now are questioning whether the problems in Europe will disrupt a recovery.
Showing posts with label dollar. Show all posts
Showing posts with label dollar. Show all posts
Tuesday, May 18, 2010
Monday, March 15, 2010
Long-term prospects for dollar could boost demand for dealer gold
People who are wondering if now is the time to talk to silver and gold dealers about precious metal investments may want to consider a recent media report that could invite speculation about the long-term strength of the U.S. dollar.
A recent article by AFP noted that financial experts are predicting that the Canadian dollar will trade just above the value of the U.S. dollar for a short term.
The wire service said that the experts believe this could happen by September, and that the Canadian dollar would fall back to a value of about 97 cents to the U.S. dollar by the end of the year.
The report added that the Canadian dollar was expected to get a boost with help from concerns about sovereign debt as well as higher demand for commodities like oil and certain minerals. It was also noted that the Canadian dollar's all-time high came in at 1.10 U.S. dollars in 2007.
For investors who are wary of the ever-increasing U.S. national debt, concern about the dollar may become more pronounced than ever in the coming years. With that in mind, talking to some silver and gold dealers may be an advisable strategy.
A recent article by AFP noted that financial experts are predicting that the Canadian dollar will trade just above the value of the U.S. dollar for a short term.
The wire service said that the experts believe this could happen by September, and that the Canadian dollar would fall back to a value of about 97 cents to the U.S. dollar by the end of the year.
The report added that the Canadian dollar was expected to get a boost with help from concerns about sovereign debt as well as higher demand for commodities like oil and certain minerals. It was also noted that the Canadian dollar's all-time high came in at 1.10 U.S. dollars in 2007.
For investors who are wary of the ever-increasing U.S. national debt, concern about the dollar may become more pronounced than ever in the coming years. With that in mind, talking to some silver and gold dealers may be an advisable strategy.
Thursday, February 4, 2010
Gold Trades Near Three-Month Low After Dollar Extends Rally
Gold traded little changed near a three-month low after plunging the most in 14 months yesterday as the dollar’s rally reduced the appeal of the metal as an alternative investment. Silver traded near a five-month low.
Bullion for immediate delivery rose as much as 0.5 percent earlier after plunging 4.2 percent to a three-month low yesterday. Prices pared gains as the dollar rallied to its highest in more than eight months against the euro amid concern widening deficits will hamper Europe’s economic recovery.
Gold enjoyed a short “pause after yesterday’s sell-off,” said Hiroyuki Kikukawa, general manager of research at Tokyo- based IDO Securities Co. “If you look at the size of yesterday’s price drops in overall commodities and equities, it’s just like one of the big funds being forced to close.”
Gold for immediate delivery fell 22 cents to $1,063.48 an ounce at 10:55 a.m. in Tokyo after touching $1,059.68 yesterday, the lowest level since Nov. 3. Bullion for April delivery, the most widely held contract, gained 0.1 percent to $1,063.80 an ounce on the Comex division of the New York Mercantile Exchange.
The Reuters-Jefferies CRB Index of 19 raw materials fell 2.6 percent to 263.67 yesterday, the biggest drop since Aug. 14. After reaching a 14-month high in January, the commodity gauge ended the month down 6.3 percent, the most since November 2008, on concern that a faltering global recovery will delay increases in consumption.
Unemployment, Deficits
A U.S. Labor Department report yesterday showed first-time claims for unemployment insurance unexpectedly rose to the highest level in seven weeks. Stocks tumbled around the world on concern Greece, Spain and Portugal will have difficulty curbing budget deficits.
The dollar last traded at $1.3681 per euro from $1.3723 in New York yesterday. It earlier reached $1.3669, the strongest level since May 20. Crude oil fell 0.3 percent to $72.95 a barrel after dropping 5 percent yesterday, its biggest decline since July 29.
Silver for immediate delivery gained as much as 0.8 percent to $15.3725 an ounce and last traded at $15.265, down 0.1 percent. The price dropped 6.8 percent yesterday, the biggest decline since December 2008. It touched $15.185 yesterday, the lowest level since Sept. 2.
Palladium dropped 2.9 percent to $397.13 an ounce, the lowest level since Dec. 31. It lost 6.5 percent yesterday, the most since Feb. 23. Spot platinum fell 0.9 percent at $1,493.25 an ounce, after losing 4.4 percent yesterday.
Source: Bloomberg
Bullion for immediate delivery rose as much as 0.5 percent earlier after plunging 4.2 percent to a three-month low yesterday. Prices pared gains as the dollar rallied to its highest in more than eight months against the euro amid concern widening deficits will hamper Europe’s economic recovery.
Gold enjoyed a short “pause after yesterday’s sell-off,” said Hiroyuki Kikukawa, general manager of research at Tokyo- based IDO Securities Co. “If you look at the size of yesterday’s price drops in overall commodities and equities, it’s just like one of the big funds being forced to close.”
Gold for immediate delivery fell 22 cents to $1,063.48 an ounce at 10:55 a.m. in Tokyo after touching $1,059.68 yesterday, the lowest level since Nov. 3. Bullion for April delivery, the most widely held contract, gained 0.1 percent to $1,063.80 an ounce on the Comex division of the New York Mercantile Exchange.
The Reuters-Jefferies CRB Index of 19 raw materials fell 2.6 percent to 263.67 yesterday, the biggest drop since Aug. 14. After reaching a 14-month high in January, the commodity gauge ended the month down 6.3 percent, the most since November 2008, on concern that a faltering global recovery will delay increases in consumption.
Unemployment, Deficits
A U.S. Labor Department report yesterday showed first-time claims for unemployment insurance unexpectedly rose to the highest level in seven weeks. Stocks tumbled around the world on concern Greece, Spain and Portugal will have difficulty curbing budget deficits.
The dollar last traded at $1.3681 per euro from $1.3723 in New York yesterday. It earlier reached $1.3669, the strongest level since May 20. Crude oil fell 0.3 percent to $72.95 a barrel after dropping 5 percent yesterday, its biggest decline since July 29.
Silver for immediate delivery gained as much as 0.8 percent to $15.3725 an ounce and last traded at $15.265, down 0.1 percent. The price dropped 6.8 percent yesterday, the biggest decline since December 2008. It touched $15.185 yesterday, the lowest level since Sept. 2.
Palladium dropped 2.9 percent to $397.13 an ounce, the lowest level since Dec. 31. It lost 6.5 percent yesterday, the most since Feb. 23. Spot platinum fell 0.9 percent at $1,493.25 an ounce, after losing 4.4 percent yesterday.
Source: Bloomberg
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