Slower Economy Speeds Dow And Euro Futures
domestic product growth in a year brought euro FX futures
off contract record lows and jolted Dow futures to their
biggest one-day gain in a month.
Gross domestic product rose 2.7%,
down from 5.6% last quarter (Q2). The slower economic growth
calmed inflationary fears and is suggestive of a possible
loosening of interest rates by the Federal Reserve. Dow
financial component JP Morgan (JPM) surged 8.8% and closed
on its high of the session. American Express (AXP) and
Citigroup (C) also rallied 2.6%, working to boost Dow
futures
(
DJZ0 |
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PowerRating) (from the
10-Day Highs List) 256.0 to 10,706.0.
S&P futures
(
SPZ0 |
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PowerRating) rallied
29.70 to 1401.00. The rally in blue chips failed to ignite
sustained carryover buying in the Nasdaq 100 futures
(
NDZ0 |
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PowerRating) which closed 5.00 lower at 3222.50.
The GDP figures also (temporarily)
realigned views that Euroland is far behind the US in
economic output. Currencies values are highly influenced by
perceptions of economic activity. The slower output figures
narrow the differential between US and European economic
levels and prompted buyers to snap up euros trading at
historic low levels. Euro Fx futures
(
ECZ0 |
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PowerRating) also
accelerated through a Turtle Soup Plus Two buy
trigger (one day behind schedule) for a .01080 gain to
.84170.
Of course dollar index futures
(
DXZ0 |
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PowerRating) moved in opposition to the euro, falling 1.11 to
117.31. Swiss francs
(
SFZ0 |
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PowerRating) and
British pounds
(
BPZ0 |
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PowerRating) also rallied, adding .0042
and .0194, respectively.
Energies fell as the 20th day passed
where a barrel of OPEC crude oil remained above $28.
The OPEC president told cartel members to increase
production by 500,000 barrels a day in accordance with plans
to keep the price within a $22 to $28 band.
(
CLZ0 |
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PowerRating)
fell .97 to 32.74, heating oil
(
HOZ0 |
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Chart |
News |
PowerRating) fell .0352 to
.9442, and unleaded gasoline
(
HUZ0 |
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Chart |
News |
PowerRating) slipped .0393 to
.8743.
Natural gas
(
NGZ0 |
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PowerRating) also extended losses, falling .101
to 4.652.
Reversing off a 20-day low after
Thursday’s 8% decline, March 2001 sugar
(
SBH1 |
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PowerRating)
rebounded .17 to 9.53
Calm returned to the Ivory Coast and
port loadings resumed following an election, protests and
violence in the country that produces approximately 40% of
the world’s cocoa. Cocoa
(
CCZ0 |
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Chart |
News |
PowerRating) hit its lowest
level ever, falling 25 to 762.
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