Crude Oil Rises To Record High

In today’s economic news,
Manufacturers in New York State experienced slower growth in April

(report).
The National Association of Home Builders reported that confidence among home
builders declined in April (report).
Meanwhile, the Treasury Department reported that net foreign purchases of US
securities rose in February (report).

Roger Ferguson, Vice Chairman of the Federal Reserve made comments today that
the central bank should not focus on asset prices (report),
and Chicago Fed President Michael Moskow commented that the economy is strong,
but inflation is near the upper end of price stability range (report).

Treasuries posted their biggest rise in three weeks, boosted by today’s weaker
than expected economic data and a weekend article in the Wall Street Journal
that the Fed will stop raising interest rates at 5% or 5.25%.

The US Dollar moved in the opposite direction, falling heavily against all major
currencies and causing the Dollar Index to lose 1.13%.

June Gold rose more than $18 to close at a new contract high of $618.80. Silver
also closed at a new contract high. Copper reached another all-time high and has
doubled its price in the past twelve months.

Crude Oil Futures Close At New
All-Time High

June Crude Oil futures closed at a
new all-time high as concerns surrounding Iran’s nuclear ambitions continued to
mount.

In the softs, Sugar +2.24% and Cocoa +2.05% were the best performers. Coffee and
Cotton also rose, while Lumber and Orange Juice fell.

All the grains except for Wheat, -2.24%, closed higher.



Economic News

NY Empire State Index At
15.81 For April (report)

April Homebuilder Confidence Falls To 50 (report)

Net foreign purchases of long-term domestic securities totaled $99.5 Bln for
February (report)

For more reports and analysis go to our
Economic
News
section.

Ashton Dorkins

editor@tradingmarkets.com


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