Will The Fed Cut Rates?
Benchmark 10-year Treasuries had their biggest
rally in eight weeks, as a gauge of consumer confidence fell to its lowest level
since 1993, fueling speculation the Federal Reserve will cut interest rates.
This moved the December contracts.
Despite the not-very-positive consumer confidence numbers, the markets did not
fare that badly. The Dec. S & P 500 futures
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1.10%, to end at 882.
Two-year notes had their largest gain in a month as investors said the slide in
confidence will crimp consumer spending, which accounts for two-thirds of the US economy. The Dec. 10-year note
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support zone to close at 114.39 up 1.03. The Dec. 30-year bond
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1.59 or 1.46% to 110.56 as it rallied from its 108 support line.
The tech-heavy Nasdaq 100 futures for Dec.
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For a closer look at the technical levels on the NDZ2,
click here for Carolyn Boroden’s Future Perspectives.
The energy complex saw only
muted support from the increased tensions connected with the UN resolution process. Tempering positive price action was
additional supply news, showing increased flow from key OPEC members.
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Dec.
heating oil
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Dec. unleaded gasoline
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1.46%. Natural gas is on a pullback from the recent high. The upcoming cold
weather pattern sparked short covering in natural gas, as the cold winter
players are streaming into the long side of the market. While prices are sharply
above the levels seen just two months ago, it would seem that the buyers will
not be shy in boosting prices further. However Dec. natural gas
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At the Chicago Board of Trade (CBOT) grains and
beans were positive,
with soybeans being the biggest winner on the day. Nov. soybeans
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rallied from its losses in yesterday’s session. SX2 gained 11 1/2 cents to $5.57
a bushel.
Dec wheat
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corn
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In the precious metals,
both silver and gold rallied higher today as some traders rotated into the
metals for safety, due to the bad consumer confidence numbers. Dec. gold
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broke above the 4.48 resistance level to close at $4.51 an ounce up 9.80 cents
or 2.22%.
Â
Grupo
showed third-quarter copper production to have declined vs. last year, while
their first nine months of 2002 also showed markedly less copper production.
That is supportive to copper prices. The market was already aware of the
potential that major producers were paring production to support prices and the
Grupo news simply confirms what the market already
knows. The recent high in copper will restrain prices in the coming sessions as
US economic numbers look to undermine recent optimism.
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dropped .95 to 70.40 a pound, down 1.33%.