Why Fed May Assist Market
Today’s Recap was written by TradersWire’s Duke
Heberlein.
The release of the FOMC’s beige book numbers held stocks at bay Wednesday,
giving an intraday bounce to treasuries as hints toward rate cut number 11 this
year were bandied about. William Poole, Fed Bank of St. Louis President, made
comments similar to what another Fed governor said previously, alluding that
there was still further room to cut interest rates. These comments have given
hope that the policy makers will continue to attempt to pull the US economy out
of recession at the next Fed meeting, scheduled for Dec. 11. Both major US
notes were unable to hang on to their gains, however, closing unchanged.
T-bonds
(
USZ1 |
Quote |
Chart |
News |
PowerRating) ended the session at 103^21, while 10-year notes
(
TYZ1 |
Quote |
Chart |
News |
PowerRating) closed at 106.22.
In the currencies, the Japanese yen
(
JYZ1 |
Quote |
Chart |
News |
PowerRating) rose despite Standard
& Poor’s cutting the Japanese credit rating, closing up 0.000061 at 0.008135.
The British pound
(
BPZ1 |
Quote |
Chart |
News |
PowerRating) finished up 0.0106 at 1.4238, euro FX
futures
(
ECZ1 |
Quote |
Chart |
News |
PowerRating) rose 0.0056 to 0.8872, Swiss francs
(
SFZ1 |
Quote |
Chart |
News |
PowerRating)
gained 0.0043 to 0.6072, and the Canadian dollar
(
CDZ1 |
Quote |
Chart |
News |
PowerRating) ended the
positive run, ending the day up 0.0041 to 0.6371. December dollar index
futures
(
DXZ1 |
Quote |
Chart |
News |
PowerRating) dropped against the foreign monies, closing down 0.75 at
116.23.
Wheat traded lower after Egypt pulled the plug on an offer for the U.S.
product, citing too high an offer. December wheat
(
WZ1 |
Quote |
Chart |
News |
PowerRating) slid 5
points on the news to 274 1/4. Corn
(
CZ1 |
Quote |
Chart |
News |
PowerRating) fell by the same amount to
198 3/4, and January soybeans
(
SF2 |
Quote |
Chart |
News |
PowerRating) fell 8 1/2 to 435 1/2. Soy
meal
(
SMZ1 |
Quote |
Chart |
News |
PowerRating) slipped 2.70 to 156.20, while soybean oil
(
BOZ1 |
Quote |
Chart |
News |
PowerRating) completed the down day for the complex, losing 0.31 to 15.78.
In the meats, green was the color of the day, as the group as a whole banged
out gains in Wednesday’s session. Pork bellies
(
PBG2 |
Quote |
Chart |
News |
PowerRating) rallied to a
two-month high, closing up 2.65 at 78.775. December lean hogs
(
LHZ1 |
Quote |
Chart |
News |
PowerRating)
also rallied intraday, but pulled back heading into the close, finishing trading
up 0.275 to 50.375. Live cattle
(
LCZ1 |
Quote |
Chart |
News |
PowerRating) ended the day up 0.20 at
70.40, and feeder cattle
(
FCF2 |
Quote |
Chart |
News |
PowerRating) gained 0.50 to 85.175.
Stock index futures were hammered throughout trading following the Beige Book
release, with the Dow futures
(
DJZ1 |
Quote |
Chart |
News |
PowerRating) falling 166 to 9714, S&P
futures
(
SPZ1 |
Quote |
Chart |
News |
PowerRating) were hit for 21.50 to 1129, and December Nasdaq 100
futures
(
NDZ1 |
Quote |
Chart |
News |
PowerRating) suffered a loss of 60 points to 1556.
Energies were mixed, as December crude oil
(
CLZ1 |
Quote |
Chart |
News |
PowerRating) fell amidst reports of a warmer than usual winter on the horizon combined with a slower
economy. The contract closed at 19.31, up 0.09, with heating oil
(
HOZ1 |
Quote |
Chart |
News |
PowerRating) slipping a slight 0.0005 to 0.5304. Natural gas
(
NGZ1 |
Quote |
Chart |
News |
PowerRating)
ended the day at 2.316, while unleaded gasoline
(
HUZ1 |
Quote |
Chart |
News |
PowerRating) finished at
0.5278, both unchanged.
Finally, in the softs, March coffee
(
KCH2 |
Quote |
Chart |
News |
PowerRating) fell due to
expectations of a surge in coffee coming out of Central American and Vietnam,
ending at 46.25, down 0.25. Sugar
(
SBH2 |
Quote |
Chart |
News |
PowerRating) lost 0.01 to 7.56, while
January orange juice
(
OJF2 |
Quote |
Chart |
News |
PowerRating) fell 0.70 to 95.30. Cocoa
(
CCH2 |
Quote |
Chart |
News |
PowerRating), meanwhile, rose 9 points to 1295, and cotton
(
CTH2 |
Quote |
Chart |
News |
PowerRating) added 0.66 to its contract to close at 37.78.