How High Can Natural Gas Go?
Once again, the markets continued to be fixated
on threats of war with Iraq. The possibility of war appears to be getting closer
as Iraq is failing to complied with Hans Blix’s order to destroy its Al Samoud
missiles. Iraq has until March 1 to comply. Saddam Hussein has said that Iraq is
not going to destroy the missiles and even challenged President Bush to a debate. Turkey is
sending a proposal to its parliament that will give the US a northern presence
in case of war. Stock index futures are aiming at Friday’s lows amid the threat
of war and news of another scandal. The dollar is weaker too while bonds are
hovering near contract highs. Gold and oil are also higher as war could be
getting closer.
After making a turnaround to the upside on Friday, stock index futures headed
lower today on the ever increasing threat of war with Iraq. Inflated profits
from Royal Anhold
(
AHO |
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PowerRating) brought back memories of corporate accounting
scandals. Retail issues also dragged the markets lower as last week’s blizzard
hurt sales. The March Dow contract
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DJH3 |
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PowerRating) fell 144.99 to 7855, S&Ps dropped
14.19 to 833, and the March NDX contract
(
NDH3 |
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PowerRating) dropped 21.49 to 993.
The dollar index is also weaker once again as we draw closer to war. A war
with Iraq would disrupt economic growth and deter foreign investors. The March
dollar index
(
DXH3 |
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PowerRating) fell 0.52 at 99.74. Support is right underneath at
99.59.
Treasury futures ended higher on more safe-haven buying. The 10-year contract
got within a hair of Friday’s high. It closed up 12/32 to 115 22/32 and the
30-year contract
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USH3 |
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PowerRating) rose 15/32 to 113 19/32.
Gold also benefited from safe-haven buying. April gold
(
GCJ3 |
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PowerRating) gained
4.60 to 356.40.
Oil continued to make another two-year high. April crude
(
CLJ3 |
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PowerRating) rose
0.94 to 36.52. Meanwhile natural gas soared to a 25 month high due to the East
Coast blizzard. March natural gas
(
NGH3 |
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PowerRating) jumped 2.54 to 9.15.