How Will This Vote Affect Crude?
Stock index futures started off this abbreviated trading week on a negative
note as they fell for the fourth consecutive session. Even news of the fastest
pace of housing starts since 1986 failed to inspire buyers as traders focused on
the declining profits from Citigroup
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PowerRating) as well
as the increasing uncertainties with Iraq. Housing starts in December jumped
five percent to an annual rate of 1.835 million units. Housing starts continued
to be strong as interest rates remain at multi-year lows. The March S&P futures
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dropped 11 to 1009, and the March Dow futures
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Once again the dollar also sold off. The March dollar index
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dropped 0.42 to 100.47.Â
Crude oil jumped to another contract high despite signs that the strike could
weaken. Venezuelan tanker pilots voted on whether to end the 51-day oil strike.
It was also reported that former President Jimmy Carter has joined in efforts to
help put an end to the strike. February crude
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high of 35.20 before settling back to finish the day at 34.61.Â
Gold rebounded today amid the ever-increasing tensions of war. President Bush
has asserted that Iraq is “clearly not disarming” and has been given ample time
to do so. The military is also gearing up as the Army is sending 37,000 troops
as well as two aircraft carriers to the Persian Gulf. February gold
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gained 0.60 to 357.50.
Bonds also continued to rally as stocks declined. After some early morning
weakness brought on by the strong December housing starts, bonds rallied back.
The March 10-year contract
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30-year contract
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