24 Mar 2012: Commodities rally back, Crude Oil prices rise again

  • Equities varied, Commodities rally back: Equities mainly reflect concern drawn out from US housing data, but some indices consolidate their highs. Commodities have rallied back after a poor start to the week. Lower equities demand has also seen US 10-year yields fall 4 bp, while Bunds are at 1.87%; Spanish yields however, surpass 5.5% again.
  • Stocks: FTSE All World is up 0.3%, but FTSE Eurofirst lost 0.1%; Tokyo and Shanghai both lost 1.1%, and S&P 500, driven by energy sector gains, gained 0.3%; FTSE 100 added 0.1% at open and is at 5854
  • Currencies: Euro gained half a percent and is at $1.3159; Dollar to Yen is 82.31, unchanged against the dollar. Sterling against dollar is at 1.5866
  • Debt: US 10-years at 2.22%; Bunds at 1.87%; Italian bonds cross 5%; Gilts are at 2.33%
  • Commodities: Brent Crude adds 1.5% to $125/barrel; Copper rallies back 1.3% and is at $3.82/ounce; Gold also adds 1.1% to $1662/ounce
  • Soaring oil prices carry recession threat: Cost of oil imports for leading economies will rise to $1.5 trillion this year, at the current oil price, which might be a figure large enough to threaten a recession globally. High oil prices have become a bigger problem than the sovereign debt crisis, as crude oil prices have risen 15% this year.
  • Bats withdraws IPO, banks set to lose money: Bats Global Markets Inc.’s IPO was being done by Morgan Stanely, Citi Group and Credit Suisse, who look set to lose about $7.1 million in fees after the IPO was withdrawn.
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