Commodities regained lost ground when a dollar weakening, among other things, aroused buyer interest. However, crops were an exception although they bounced well into positive territory intra-day. For most of the day, the oil price was about USD 112 a barrel, but as it did not manage to break through the point, the price was sent up towards USD 113 a barrel and subsequently rose fast to USD 116. In the course of the day, there were unconfirmed rumours about fire at a refinery, and there were

Today’s comment Majors & Scandies By the Majors & Scandis Team Yesterday sentiment in the financial markets was somewhat downbeat and market participants didn’t seem to take too much comfort in the fact that the German ZEW index for August came in above consensus estimates. Although higher than expected the index didn’t paint an optimistic picture of the outlook for the German economy in the coming months. Furthermore as data showed that US producer prices grew at the fastest pace in

USD declined – Oil rose Asian stocks hit a two-year low Today’s main events: US MBA Mortgage applications GB Minutes of BoE meeting American Time Zone: U.S. Stocks Retreat U.S. stocks declined and the Standard & Poor’s 500 Index posted its steepest twoday slump since June after wholesale prices rose faster than economists estimated, housing starts fell and concern grew that the nation’s biggest financial firms will report more losses. American International Group Inc., the largest insurer,

Crop prices rose sharply over Monday, but fell back a little overnight. When the CBOT opened on Monday, the pace was measured, but as the afternoon progressed, crop prices across the board edged up. Anxiety that the record harvest in Australia may be in danger, and an inquiry on the part of Jordan (100,000 tonnes) helped to support the wheat market, thereby supporting the bullish sentiment at CBOT. However, it was the uneventful corn and soy bean markets that dominated the day and recorded

Today’s comment Majors & Scandies By the Majors & Scandis Team The dollar fluctuated with commodity prices in a largely uninspiring session. The dollar index (DXY) and the trade-weighted dollar index (TWI USD) were more or less unchanged at the end of the day. Bank of Japan kept its target rate at 0.50% at this morning’s rate announcement as widely expected. The economic outlook was at the same time lowered its forecast for the economic outlook as growth is expected to be sluggish due

USD lower Nikkei decline – hit 1 month low BOJ keeps rates steady Today’s main events: DE - ZEW Sentiment US – Producer prices US – Housing starts American Time Zone: U.S Stocks decline U.S. stocks declined the most in more than a week, led by banking and real estate shares, as growing speculation the government will bail out Fannie Mae and Freddie Mac rattled the mortgage market. Freddie Mac and Fannie Mae slumped to the lowest in almost two decades, losing more than 18 percent, after

After closing in negative territory on Friday, commodities in general are rallying this morning. Oil : OPEC’s monthly report on supply and demand focused on the flagging demand in the US and Europe. Yet the estimate of demand growth was lowered only marginally for 2008, by 30,000 to 1 million b/d. The estimate for 2009 was unchanged. At the same time the organisation stressed that it expects an improvement in non-OPEC production. According to the report, there are prospects of stockpiling,

Today’s comment Majors & Scandies By the Majors & Scandis Team Speculators once again increased their net long positions in the dollar according to CFTC Commitments of Traders. It is in line with what we have seen in the FX market the last 1½ week and I would not surprise us if the speculators are actually longer in the dollar than what the numbers indicate as they are collected Tuesday of last week. Speculators have sold almost 10.000 additional EURUSD-contracts compared to the week

Weak oil and commodity prices help support dollar EUR/USD hits 6 months low Today’s main events: US NAHB housing market CH Retail sales BOJ rate announcement American Time Zone: U.S. stocks rose U.S. stocks rose, sending the Standard & Poor’s 500 Index to a third weekly gain, as lower commodity prices boosted the outlook for consumer companies and the two largest bond insurers had their credit ratings affirmed. Wal-Mart Stores Inc., the world’s largest retailer, climbed the most in a week

Thursday was a mixed day for commodities, but the trend was primarily declining. After a general rebound for commodities on Wednesday, focus was on Thursday once again on the declining growth. In addition, a stronger US dollar characterised the market. Copper: We take profit on our recommendation to sell copper. Yesterday’s increase from the point of support at USD 7,200 a tonne towards the resistance level at USD 7,600 a tonne and then back again makes us less certain about a further setback.