The Market’s Reponse To The Record Trade Deficit
Treasuries
fell after traders speculated incoming Fed Chairman Ben Bernanke will be hawkish
in his Congressional testimony Wednesday and Thursday next week.
The U.S. trade deficit
1.5% to $65.7 billion in December; for the year, it was a record high of $725.8
billion.
Speculation that producers will boost production
sent copper prices falling. Global mine
output will exceed demand this year, the first time since 2002. Copper
production is expected to rise almost 9.9% this year. On the NYMEX, March copper
fell over 8 cents to $2.22.
Gold erased
yesterday’s gain, closing down $16.60 to $553.50 and down 3.2% on the week.
Natural gas
fell for a fifth straight day as warmer-than-expected weather led to record gas
in storage. March gas fell 2.2%.
March crude
fell to its lowest levels this year after the IEA cut its 2006 demand forecast.
Japanese machinery orders rose, sparking the
yen to its first weekly gain vs. the dollar
in a month.
Bird flu is
rampant in Nigeria. Quarantines are in effect but some sorry that it may be
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