Previous posts
Goodgle link units
Add your google link units or ad units here by replacing this text in the template
Add ANY ICONS OR Blog directories buttons here
Blog Archieve
  • November 2006
  • August 2007
  • September 2007
  • October 2007
  • November 2007
  • December 2007
  • January 2008
  • February 2008
  • March 2008
  • April 2008
  • May 2008
  • June 2008
  • July 2008
  • August 2008
  • September 2008
  • October 2008
  • November 2008
  • December 2008
  • January 2009
  • February 2009
  • March 2009
  • April 2009
  • May 2009
  • June 2009
  • July 2009
  • August 2009
  • September 2009
  • October 2009
  • November 2009
  • December 2009
  • January 2010
  • February 2010
  • March 2010
  • April 2010
  • May 2010
  • June 2010
  • July 2010
  • August 2010
  • September 2010
  • October 2010
  • November 2010
  • December 2010
  • January 2011
  • February 2011
  • March 2011
  • April 2011
  • May 2011
  • June 2011
  • July 2011
  • August 2011
  • September 2011
  • October 2011
  • November 2011
  • December 2011
  • January 2012
  • February 2012
  • March 2012
  • April 2012
  • June 2012
  • July 2012
  • August 2012
  • September 2012
  • October 2012
  • December 2012
  • January 2013
  • February 2013
  • May 2013
  • August 2013
  • April 2014
  • June 2014
  • September 2014
  • October 2014
  • January 2015
  • February 2015
  • March 2015
  • April 2015
  • September 2015
  • November 2015
  • January 2016
  • March 2016
  • November 2016
  • January 2017
  • June 2017
  • Credits

    China "mass liquidation"

    Stocks and commodities prices fell sharply Friday as investors confirmed that China will slow down its surging economy.
    The Dow Jones industrial average dropped nearly 120 points in early afternoon trading, led by sharp losses in energy and materials stocks.
    Concerns that China will raise interest rates in order to fight inflation brought worries that demand from China could wane for a wide variety commodities including crude oil, metals and grains.
    Talk of the interest-rate hike in China has led to "mass liquidation" in the commodities market. Losses among commodities accelerated throughout the day. Benchmark crude is down more than 3 percent. Silver prices fell more than 5 percent and soybeans are down nearly 5 percent.
    China will formally announce next week the raise in interest rates.

    Labels: ,

    written by ABSTRACTMIND @ 11:05 am, ,

    The energy boom's double-edged sword.

    Crude prices nearing $90 for the first time in two years, some economists and producers are getting nervous, according to assistant managing editor WorldWatch First Published: November 8, 2010.

    Crude is currently trading around $86 a barrel. Prices have not topped $90 in more than two years. But now that the US the Federal Reserve has made its latest round of quantitative easing official, this attempt to control the dollar may have a negative reaction on crude, some fear that crude at $90 is likely in the not-so-distant future.

    The dollar has weakened a lot leading up to the US Fed announcing its $600 billion plan to buy more Treasury bonds. And many experts think the greenback may continue to fall. That would put more pressure on oil prices, which are priced in dollars.
    The real question is how much weaker can the US force the dollar to go, particularly relative to Europe. That could get oil beyond $90 sometime soon, and that is be bad news for consumers , who are still reluctant to spend at a time when the economy remains fragile.

    Rising energy prices are often viewed as a so-called tax on the consumer.People may have to pay more to fuel up their cars and heat their homes.
    Higher oil prices will also jeopardize the recovery of most Nations and in particular the crude producers as demand will decline further, estimates place a drop in demand for this year by 16%, but this figure may continue to rise if the crude prices are not kept around the $76 a barrel.

    Shares of Ford (F, Fortune 500) are near a six-year high. GM has returned to profitability and is scheduled to go public again next week. Even Chrysler, which reported a loss Monday, is pointing to better times ahead.
    So the last thing any of these companies want is sticker shock at the gas pump, however this is about to happen causing these and other automakers to enter a second recession.

    The big issue is about consumer confidence. What you pay for petrol (gas in US) is a very prominent cost. If oil goes over $90, you will see more concerns about consumer spending-

    Even if oil does blow past $90 and starts heading toward $100, this will cause consumers to be nervous simply because they've already lived through $100 oil before.
    Oil has a long way to go before it reaches the all-time highs of more than $140 a barrel back in July 2008. With that in mind, oil at $90 -- or even $100 -- will be a major pain for consumers.
    However, if rising oil prices start leading to higher consumer prices , consumers may start to change their behavior to conserve cash, and find other energy sources.

    If oil keeps going higher, people will curb their driving. The prices will become a natural inhibitor to demand. rising oil prices are already having an impact and consumers are being more cautious about what they spend.
    Nobody is paying attention to oil and that investors banking on better times ahead for retailers may be in for a shock.People may be spending more at the pump than at restaurants and on shopping over the holidays.The increase in energy prices is diverting money that might be spent elsewhere.

    Labels: ,

    written by ABSTRACTMIND @ 1:40 pm, ,



    Subscribe in a reader


    The Commodity prices are provided by Forex Pros - The Leading Financial Portal

    blog links
    Finance directory