GLOBAL MARKETS-US stocks, dollar down as Bernanke weighs
Thu Nov 8, 2007 5:23pm EST
(Updates to close of U.S. markets, adds quote)
By Steven C. Johnson
NEW YORK, Nov 8 (Reuters) - U.S. stocks and the dollar fell on Thursday after Federal Reserve Chairman Ben Bernanke said a weak housing market and high oil prices would slow U.S. growth in the fourth quarter and keep it sluggish in early 2008.
Worries about the impact of the credit market's ongoing turmoil on corporate profits pushed safe-haven government bonds higher, and oil prices retreated from record highs near $100 a barrel after Bernanke stirred concern about the health of the economy.
Speaking before a congressional committee, Bernanke told lawmakers that the U.S. economy did not appear headed for a recession and added that inflation was still a concern.
But investors have continued to price in a strong chance that the central bank will cut interest rates next month.
Christopher Low, chief economist at FTN Financial in New York, said investors were a bit at odds on how to interpret the Fed chief's remarks.
"They are pulled in two directions. They are worried about the economy. They are worried about inflation. Bernanke is in a box and it's getting smaller."
On Wall Street, traders pushed stocks lower, though a late recovery in financial shares lifted prices well off session lows touched earlier in the trading session.
The Nasdaq ended the day deep in the red, though, after Cisco Systems Inc (CSCO.O: Quote, Profile, Research) signaled that credit market woes were hurting customer demand, sending the tech bellwether's stock down 9.5 percent.
The Dow Jones industrial average (.DJI: Quote, Profile, Research) shed 33.73 points, or 0.25 percent, to end at 13,266.29. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research) was down just 0.85 of a point, or 0.06 percent, to finish at 1,474.77. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research) was down 52.76 points, or 1.92 percent, to close at 2,696.00.
The credit crunch of the past three months, stemming from the fallout from the U.S. subprime mortgage crisis, has hit consumer sentiment and threatened to weaken corporate profits and derail growth in the world's largest economy.
DOLLAR DROPS, BONDS RISE
The dollar fell near record lows against the euro on Thursday, weighed down by Bernanke's comments. The euro last traded up 0.2 percent at $1.4670 <EUR=>, near an all-time high of $1.4730 hit on Wednesday.
Against Japan's yen, the dollar traded at 112.33 yen <JPY=>, below 112.80 yen late on Wednesday.
In the fixed-income market, U.S. bonds rose as stocks fell. The benchmark 10-year note <US10YT=RR> was up 10/32 in price for a yield of 4.29 percent, while the 2-year note <US2YT=RR> rose 4/32 to yield 3.48 percent.
OIL PAUSES IN RUN TOWARD $100
U.S. oil (CLc1: Quote, Profile, Research) settled down 91 cents at $95.46 a barrel, after trading as high as $97.70 earlier. Worries over weak U.S. oil demand and falling stock markets have pulled crude lower.
Spot gold <XAU=> fell to $832.10 an ounce from $833 on Wedensday, when it hit $845.50 -- a high last seen in January 1980 and less than $5 below its record high of $850.
COMEX most-active December gold (GCZ7: Quote, Profile, Research), however, rose $4.00 to settle at $837.50 an ounce, below Wednesday's 28-year record at $848.
Gold is up more than 30 percent on the year and has soared since the troubles in the credit markets began. It is seen as an inflation hedge and a safe haven among the turmoil.
EUROPEAN STOCKS SLIP, NIKKEI AT 2-MONTH LOW
Earlier in the session, European markets focused on news surrounding BHP Billiton's (BLT.L: Quote, Profile, Research) takeover approach to rival Rio Tinto (RIO.L: Quote, Profile, Research) in a move that could create a$350-billion-plus mining giant. Rio Tinto, however, rejected the proposal.
Despite Rio Tinto's rejection, the news offered some optimism in a market hit by a fresh series of negative news on the U.S. mortgage and financial industry.
MSCI's main world equity index (.MIWD00000PUS: Quote, Profile, Research) was down 0.7 percent, after hitting a two-week low. The index is up 11 percent since January and not far from last week's record high.
The FTSEurofirst 300 (.FTEU3: Quote, Profile, Research) index of pan-European shares slipped 0.5 percent, or 7.74 points, to 1,535.81.
Japan's benchmark Nikkei average (.N225: Quote, Profile, Research) tumbled to a two-month closing low, ending at 15,771.47, as investors sold shares in response to fears that credit market troubles will spread and as the stronger yen hurt exporters' stocks. For the day, the Nikkei was down 325.11 points, or 2 percent. (Additional reporting by Ellis Mnyandu, Lucia Mutikani, Gertrude Chavez-Dreyfuss, Pedro Nicolaci da Costa, Gene Ramos and Frank Tang; Editing by Jan Paschal)
Reuters journalists are subject to the Reuters Editorial Handbook which requires fair presentation and disclosure of relevant interests.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
Mon 18 Dec
10:00 EZ- final HICP Tue 19 Dec
09:00 DE- IFO Survey
13:30 US- Housing Starts/Permits
13:30 US- Current Account Wed 20 Dec
15:00 US- Existing Homes Sales
15:30 US- EIA Crude Thu 21 Dec
03:00 JP- BOJ Decision
13:30 CA- CPI & Retail Sales
13:30 US Weely Jobless
13:30 US- GDP Fri 22 Dec
09:30 US- GB- GDP
13:30 US- core PCE Deflator & Presonal Income
15:00 US- New Homes Sales
15:00 US- final University of Michigan
17:00 US- early Closes Mon 25 Dec
00:00 Christmas Holidays
Potential Trading Opportunities
POTENTIAL PRICE RISK: Medium Mon--10:00 GMT-- EZ- final November HICP. flash data are rarely changed.
POTENTIAL PRICE RISK: HIGH- Medium Tue --09:00 GMT-- DE- IFO Survey. Key report but usually not a market-mover
POTENTIAL PRICE RISK: HIGH- Medium- Tue --13:30 GMT-- US- Housing Starts and Permits. Leading indicators of activity
POTENTIAL PRICE RISK: HIGH-Medium- Wed --15:00-- US- Existing Homes Sales. Top Housing statistic
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.