Why Higher Yielding Markets Should See Better Money Flow
None of the financial markets
had big days today, as investors were
reluctant to have any significant positions going into the weekend amid the war
in Iraq.
Equities
The equity markets were mixed today. Profit
warnings from PeopleSoft weighed on technology, and as a result, the tech-heavy
Nasdaq
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up 5.20 to finish at 878.50; and the Dow
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at 8250.
Fixed Income
Notes headed for their third
weekly decline in four, as traders speculated consumer and business spending will
increase on an allied victory. On the day, Treasuries fell after the market
realized that the jobless report wasn’t as weak as expected. However, the market
trimmed some of the day’s losses on the back of comments from an Iraqi
minister threatening the use of unconventional methods against Allied troops
tonight and a TV statement by Saddam Hussein
(reportedly) calling for continued vigilance against the attacks. The 10 year contract
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was down 0-050, closing at 114-040; the 30 year
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-09, closing at 111-08, ; and the five year note finished
down 0-020 to close at 113-030
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Metals
With the exception of platinum, all of the metals
closed higher today, after a tough week. Silver
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4.414; Gold was up .3, to finish at 326.00
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Energy
News that ChevronTexaco is resuming oil output
from Nigeria–expecting to reach 310,000 barrels a day by the end of this
month–sent oil lower today. As a result, crude futures were down .35 to close at
28.62
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rout was up .024 and closed at 4.943
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Currencies
Broad risk measures in the currency markets are
approaching their pre-November 2002 (UN resolution 1441) levels, which suggests
that investors are becoming more willing to take risks. This type of environment
usually benefits currencies with higher relative interest rates, such as
emerging market currencies. The USD index
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finished at 100.88.