Bernanke’s Comments Ripple Through Market
U.S. 10-year bond yields fell to a one month low, as prices
rose on Bernanke’s “moderation” commentary. Yesterday Bernanke’s notes
were released to the public, which highlighted a slowing U.S. economy marked by
moderation in growth. As such, investors cut their bets that the Fed would
raise interest rates in August, driving prices higher and yields lower.
The U.S. dollar fell for the second straight day after
Bernanke’s comments led to weak investor sentiment in strength for the Dollar.Â
As the U.S. gears up for a hike pause in August, the investing community is
seeing signs that the Dollar is weak, especially with the expected hikes coming
for the European Central Bank.Â
Crude oil futures rose 0.5% to $73.08 after violence in Israel
continues to rage. Iran also declared that there are no plans to stop
nuclear enrichment, helping to boost the price of crude on supply fears.Â
Natural gas rose 4% on heat wave fears across the U.S.
Gold rose 2% to close at $641.60 an ounce as the Dollar fell.Â
Gold’s attractiveness has increased as investors continue to search for a
save-haven futures. Gold and the Dollar have been trading rallies over the
last few weeks, as violence in Palestine and Iran’s nuclear efforts have the
global markets on edge.
Grains traded mixed with a few standouts. Corn fell 0.9%
and soy fell 0.25%. Wheat rose 3.4% and bean oil rose 1.1%.
Softs traded mixed to close the day. Cocoa was up 0.75%,
coffee fell 1.4% and orange juice rose 0.5%.
Meats traded lower for the day. Feeder cattle fell 0.4%,
and potbellied pigs fell 1.2%.
Philly Fed Shows Slowdown In The Pace Of Growth In The
Manufacturing Sector (full
story).
Leading Indicators Index Suggests Economic Growth Should
Continue (full
story).
Weekly Jobless Claims Show Notable Decrease (full
story).
John Patrick Lee
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