Crude Oil Falls Ahead Of Inventory Data
After yesterday’s FOMC
minutes suggested higher rates may be needed to combat rising inflation,
today’s CPI number was closely watched for any signs inflation was on the rise
in January.
The Labor Department report showed the CPI rose 0.7% in January,
while the Core CPI rose 0.2%
(report).
The headline number was above expectations but economists dismissed the report
by saying that Core prices were showing little signs of inflation. So,
providing you don’t eat, or use energy, you’ll be pleased to know there’s very
little inflation!
Treasuries responded by selling off initially before
rallying sharply to close higher on the session. The Dollar posted modest gains
versus the Euro. FOREX traders should check out TradingMarkets
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All the energies declined, with Crude Oil dropping
sharply ahead of tomorrow’s inventory data.
The softs were strong, with only Coffee (-1.48%)
losing ground. Sugar (+3.28%) and Cocoa (+2.22%) were the standout performers.
All the major grains closed lower, with Soybean Meal
(-2.50%) leading the decline.
In the meats, Pork Bellies jumped almost 3%, while
Lean Hogs fell nearly 2%.
Gold closed near unchanged and Copper posted a
slight gain.
Mortgage Bankers Association’s Weekly Market Index Ticks Up 0.8%; Purchase
Index Rises 4.3%, Refi. Index Falls 4%
CPI Up 0.7% For Jan.; Core CPI Up 0.2% (report).
Ashton Dorkins
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