Slow and Mixed for Dollar, Gold

U.S. 10-year Treasury bond prices rose today, on overall speculation that
U.S. economic growth is slowing. Bonds rose steadily through August on mostly
negative U.S. sentiment, focusing mostly on sentiments that the housing market
will weigh on the entire economy, and problems will spread to other areas. Bonds
fell sharply on the Fed rate cut, but are now moving back higher on the
pessimistic U.S. outlook.

The dollar fell to new record lows against the euro, before recovering
slightly, and was also lower against the yen today. The dollar slumped on
rampant speculation that U.S. growth is losing momentum, and will slow in the
coming months. The dollar has been getting slammed ever since the Federal
Reserve cut the Fed Funds and the discount rates last week, to stem credit
losses and support a struggling housing market. The dollar was up slightly versus the Canadian dollar, and down slightly
versus the British pound.

Crude oil futures fell slightly today, after hitting new record highs on
Friday. Crude oil fell about 10% in August on growth and demand worries, but
then rallied to regain all losses, and then push to new highs. Currently, crude
is trading just above $81 a barrel, on high levels of demand and speculation
that current reserves will be able to match those energy needs. Natural gas rose
about 4% on hot weather across the Northern U.S.

Gold fell fractionally today, as the dollar hit new lows versus the euro
before rallying back. Gold normally trades inversely to the dollar and with oil,
which is what happened today. Despite rising slightly, the dollar’s fresh lows
early in the morning helped inspire gold buying. Copper futures rose nearly 2%
today on demand worries.

Grains were mixed. Soybeans were up fractionally, while corn was down about

Stocks declined on Monday, with a number of financial and energy stocks under
pressure. General Motors is in the news, after United Auto Workers union members
walked off the job this morning. The nationwide strike is the first in 37 years
for GM. Click

to read the rest of today’s

Stock Market Recap

Economic News

No major economic news to report for the
U.S. today.