Crude Cuts
Energy contracts are trading on their highs of the session.
February crude oil
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heating oil
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perception that OPEC will cut output early next year, possibly before their
scheduled meeting at the end of January. The energy market is also eyeing
Venezuela’s new oil minister who was just sworn in yesterday. It is believed
that Alvaro Silva will abide by the cartel’s output quotas, which will keep
prices high.
Natural gas, the
commodity of the year 2000, blazed a
New 10-Day High yesterday and is following through to a new all-time high.
Nat gas is being bolstered by a new storm front that is heading to the Northeast
and Midwest. Higher margin requirements and a three-day holiday are creating
thinner trading conditions which is enhancing the moves in the contract.
February nat gas
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The focus in the currencies is again on the Japanese yen,
due to lower stocks and the perception that the currency may not bottom for
several months. Although the yen has come back from new 16-month lows in the
March futures, the pressure is down and the contract remains on the Implosion-5 List.
In a sign of economic trouble, Mitsui Construction announced additional
restructuring plans that include layoffs. Japanese unemployment stands just shy
of a modern era high, at 4.8%, unheard of in Japan’s heyday.
More good economic news from Europe is helping to cement
the perception that continental economies will outperform the US. France showed
a surprise drop in unemployment, taking the rate below 10%. The
euro FX futures
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List members–the
Swiss francs
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British pound
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all higher. Going the other way as these major currencies rally, Implosion-5 List
March dollar index futures
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multi-month low and are down .77 at 109.52.