-- Posted Monday, 29 August 2005 | Digg This Article
Market Analysis from CapitalUpdates.com:
There were no major economic reports today, but tomorrow at 10AM EST brings Consumer Confidence for August expected at 101.0 and Factory Orders for July expected at -2.3%. At 2PM is the release of FOMC Minutes from their August 9th meeting.
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The main news today was hurricane Katrina and its impacts. In overnight trading when damage from the hurricane was seen as being much higher than expected, oil and bonds traded much higher while the major indices and the dollar traded much lower. By the end of trade today though, the major indices and the dollar turned losses into gains, and bonds and oil turned large gains into relatively small gains. Although this still may end up being the costliest storm on record, major losses were averted as the storm turned just east of New Orleans and the storm was downgraded, resulting in the turn around in the markets today.
Oil traded as high as $70.80 overnight, but it fell throughout trade Monday to end just slightly higher compared to the big gains seen early this morning. Oil ended with a gain of $1.07 to $67.20, ending short of its record high $67.49 made last Thursday.
Treasuries gained on the belief that record high oil prices and other economic impacts from hurricane Katrina will slow U.S. growth, hence sending the yields on longer term notes lower and the spread on the yield between the 10 and 2-year notes to just 12 basis points.
Treasuries | Close | Gain/Loss |
10-Year Note Yield | 4.173% | -0.016 |
September 2005 Bond | 116 29/32 | +7/32 |
The Dow, Nasdaq, and S&P were trading much lower overnight in futures trade and started off the day lower, but all three indices rose throughout the day to end with nice gains.
Index | Close | Gain/Loss |
Dow | 10463.05 | +0.63% |
Nasdaq | 2137.65 | +0.80% |
S&P | 1212.28 | +0.60% |
Among the big names making news in the market today were KPMG, Allstate and other insurers, Intelsat and PanAmSat, and Sinopec.
The U.S. dollar index traded lower overnight on possible slowing economic growth due to the hurricane, but it gained during trade today as the yen was seen as being hurt more by the prospect of rising oil prices. Trade was also influenced by technical factors and forecasts for a slew of economic data due out for the rest of the week.
Currency | Close | Gain/Loss |
U.S. Dollar Index | 88.21 | +0.34 |
Euro Index | 122.30 | -0.59 |
Yen | 90.45 | -0.49 |
Gold & Silver Report from GoldSeek.com & SilverSeek.com:
Gold Warehouse Stocks: | 5,949,338 | - |
Silver Warehouse Stocks: | 111,275,338 | - |
Gold jumped higher in Asia and traded above $440 at one point, but it then fell off throughout most of London trade before rebounding briefly in New York, but then fell off again and made new lows to find its first losses of the day, ending near its lows with a loss of $0.40 to $436.40. Silver followed a similar pattern, but was able to retain most of its gains in New York and ended higher by $0.10 to $6.77.
Gold and silver equities traded mostly slightly higher, but fell off in the last minutes of trade to end mixed.
Index | Close | Gain/Loss |
XAU | 94.55 | +0.72% |
HUI | 202.97 | -0.26% |
GDM | 658.65 | +0.33% |
More Precious Metals Analysis:
“After a volatile trading day off of influence from other market sectors, December gold closed weaker as a rebound in the Dollar, and a pull back in oil prices cooled flight to safety buying in gold off of hurricane fears. The Euro lost significant ground to the Dollar which added triggered profit taking in gold and with the London market's closed movements in gold could have been exaggerated. Despite crude oil topping $70 per barrel at one point, buying gold as an inflation hedge does not seem to be enough to push Dec gold above key resistance near 446. With the latest COT report showing speculators already holding a very large net long position in this market, the upside action in gold looks to be limited.” - The Hightower Report, Futures Analysis and Forecasting
Gold & Silver Stock News Update from GoldReview.com:
More on the new wage deal made between gold producers and miners’ unions in South Africa last week and Placer Dome’s future drilling on the Long Peak portion of Nevada Pacific Gold's BMX property were among the big stories in the gold and silver mining industry making headlines today.
WINNERS
1. IMA Exploration | IMR +4.87% $2.37 |
2. Cumberland | CLG +3.15% $1.31 |
3. Yamana | AUY +2.69% $3.82 |
LOSERS
1. Eldorado | EGO -13.8% $3.06 |
2. Randgold | RANGE -9.22% $1.28 |
3. SILVERCORP | SVM.V -5.97% $3.31 |
Note: Winners & Losers Will No Longer Track Stocks Under $1.
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- Written by Chris Mullen
The Gold Seeker Closing Report is a free edition providing a daily wrap-up of gold & gold-related news. For more in-depth analysis of the gold markets, subscribe to The Gold Forecaster.
All sources are given within the report and most articles can be found as they are released at http://www.capitalupdates.com/, http://www.goldseek.com/, http://www.silverseek.com/, and http://www.goldreview.com/.
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-- Posted Monday, 29 August 2005 | Digg This Article
Gold Seeker Closing Report – Katrina Whipsaws Markets
