Is Oil Set to Run Again?
Geopolitical
uncertainties again took center stage, sparking more selling in stock
index and dollar futures. Meanwhile, oil and gold headed higher.Â
Stock index futures fell for the second straight
session over concerns that the US will go to war without UN approval. Despite
the destruction of its Al Samoud missiles, the US says that Iraq fell short of
the UN disarmament mandate. A terrorist attack in the Philippines and North
Korea’s intercept of a US military plane also spooked buyers. In addition,
billionaire investor Warren Buffet’s lukewarm comments on the stock market also
weighed on stocks. The markets have been range bound for the past two weeks,
awaiting some kind of resolution. Hans Blix is scheduled to present another
report on March 7. The March S&Ps
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Treasury futures continued benefit from safe
haven buying. The 30-year contract
(
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10-year contract
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The dollar continued to slide amid the
geopolitical uncertainty. The dollar fell to a four-year low against the euro.
The greenback fell to 1.0873 basis the March euro and the March dollar index
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PowerRating) fell 0.02 to 99.16.Â
Crude oil bounced back amid renewed war concerns.
After a three-day pullback, oil jumped as the US is continuing to push for war.
President Bush is deploying an additional 60,000 troops to the already 225,000
already there. Also putting upward pressure on crude is that supplies are near a
27-year low and inventories are just above the minimum refinery operation level.
April crude
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April gold
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PowerRating) gained 3.90 to 353.20.
Â