Buck Buckles With Bonds
Dollar index futures [DXH0>DXH0] suffered their biggest decline in a month, falling as bonds struck new contract lows and as blue chip equities sold off. Manufacturing reports from Europe showing greater economic activity and comments from continental economic Ministers also pressured the dollar. March ended 1.53 lower at 99.89.
Readings from the 6/100 Low Volatility and Multiple Days Low Volatility lists suggested British pounds [BPH0>BPH0] and the
Japanese yen [JYH0>JYH0] could make larger-than-normal moves: pounds gained .0204 to 1.6394 and the yen gained .0072 to .9964. Swiss francs [SFH0>SFH0] also rallied, posting a gain of .0109 to .6456.
From the Implosion-5 List,
T-bonds [USH0>USH0] gapped to a contract low and stayed there, shaving 1 2/32 to 89 28/32 following a National Association of Purchasing Managers report that showed manufacturing activity expanded for an 11th straight month and that prices paid by companies rose unexpectedly. Traders who had taken flight-to-quality, long positions in anticipation of Y2K calendar change problems covered after the 2000 year change passed without a glitch.
Stock index futures mixed it up in volatile trading. Nasdaq 100 futures turned in one of their most volatile days ever, gapping open more than 120 points then falling 100 before settling up 90.30 at 3844.50. March Dow futures [DJH0>DJH0] fell 172 to 11,453.0 and the S&Ps [SPH0>SPH0] sank 17.40 to 1466.80.
The energies traded sharply lower as OPEC compliance with production quotas was seen as faltering and as traders unwound speculative, pre-Y2K positions.
February crude [CLG0>CLG0] lost .87 to 25.60, unleaded gas [HUG0>HUG0] dipped 4.15%, or .0293, to .6762, heating oil [HOG0>HOG0] fell .0191 to .6787 and natural gas [NGG0>NGG0] lost .065 to 2.329.
Pork contracts rallied on short supplies amid heavy demand: February lean hogs [LHG0>LHG0] rose 1.475 to 55.975 and pork bellies [PBG0>PBG0] closed up 3.000, their daily limit, at 81.150.
In the softs, coffee [KCH0>KCH0] lost 9.40 to 116.50, sinking as rain soaked the five states comprising the major growing region in Brazil. Brazil is the world’s largest producer of coffee.