Crude Oil Tumbles Ahead Of OPEC Meeting
In today’s economic news,
Factory Orders fell
4.5% in January
(report).
The drop was
less than expected but
was still the largest in more than 5-years.
Treasuries closed sharply lower, for the 4th consecutive day. The yield on the
10yr T-Note hit its’ highest level since the Fed began raising interest rates.
In the forex market, the Yen tumbled versus the Dollar, Euro and Swiss Franc
after comments made by Japanese Prime Minister Koizumi urging BoJ caution hit
the market. The Yen also posted losses versus the GBP and AUD.
Continuing the theme of lower prices, all the energies tumbled after officials
from Saudi Arabia, Kuwait and Iran said they expected no cut in production at
OPEC’s Wednesday meeting. Crude Oil closed at $62.41after trading as high as
$63.92 earlier in the session. Natural Gas hit its’ lowest level since February
05.
In the softs, Sugar bucked the trend, rising by more than 3%. Cocoa closed
modestly higher, while Coffee (-2.77%), Cotton (-1.06%), Lumber (-0.83%) and
Orange Juice (-0.68%) closed lower.
All the major grains declined, with the steepest drop in Corn (-2.51%). Soybeans
(-1.05) and Wheat (-0.94%) were also weak.
The livestock group also closed in the red. Lean Hogs (-1.98%) and Pork Bellies
(-1.37%) leading the decline.
Gold lost more than $10, closing at $556.80.
January Factory Orders Fall 4.5%; Ex-Transport Rise 1.6% (report).
Ashton Dorkins
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