Market Update and Spin
I saw this headline on CBS MarketWatch (now owned by Dow Jones) at noon time today.
U.S. stocks turn higher as oil reverses course
By MarketWatch Last Update: 3/9/2005 12:00:08 PM
Absolutely unbelievable, nothing could be further from the truth. Meanwhile, in the land of the living....at MSN Briefing.com
Crude oil futures, which have risen for the sixth consecutive session, have recently surpassed a March high and are closing in on the all-time high of $55.65/bbl (Oct 27), further constricting consumers' ability to spend. Stocks fall to fresh session lows as the indices fail to find support at key technical levels and a bearish bias remains firmly intact...
Interest-rate sensitive areas like homebuilding (-1.7%), utility (-1.1%), REITs (-1.9%) and financial (-0.8%) have been under pressure as bond yields hover near 7-month highs...U.S. Treasurys sank sharply this morning, keeping pressure on equities.
The selling started before the start of stock trading, spurred by the risk of an interest rate rise from the European Central Bank. Germany posted the biggest rise in industrial production in a decade, Reuters said.
The data pushed yields above an important technical level, driving more selling."We had the big sell-off with the strong IP number in Germany, we went through some very important chart points, 4.42% on the 10-year, and we had some mortgage (backed securities) selling that contributed to it," Craig Coats, co-head of fixed income at Keefe, Bruyette & Woods told CNBC.
But the recent Treasury selling started back when Federal Reserve Chairman Alan Greenspan called the relatively low long-term yields compared to short-term rates a "conundrum," Coats said."Alan basically said that anybody who is going to be involved in fixed income, if you're on the long, is going to lose money and warned everybody to be very careful," Coats said.
U.S. stocks turn higher as oil reverses course
By MarketWatch Last Update: 3/9/2005 12:00:08 PM
Absolutely unbelievable, nothing could be further from the truth. Meanwhile, in the land of the living....at MSN Briefing.com
Crude oil futures, which have risen for the sixth consecutive session, have recently surpassed a March high and are closing in on the all-time high of $55.65/bbl (Oct 27), further constricting consumers' ability to spend. Stocks fall to fresh session lows as the indices fail to find support at key technical levels and a bearish bias remains firmly intact...
Interest-rate sensitive areas like homebuilding (-1.7%), utility (-1.1%), REITs (-1.9%) and financial (-0.8%) have been under pressure as bond yields hover near 7-month highs...U.S. Treasurys sank sharply this morning, keeping pressure on equities.
The selling started before the start of stock trading, spurred by the risk of an interest rate rise from the European Central Bank. Germany posted the biggest rise in industrial production in a decade, Reuters said.
The data pushed yields above an important technical level, driving more selling."We had the big sell-off with the strong IP number in Germany, we went through some very important chart points, 4.42% on the 10-year, and we had some mortgage (backed securities) selling that contributed to it," Craig Coats, co-head of fixed income at Keefe, Bruyette & Woods told CNBC.
But the recent Treasury selling started back when Federal Reserve Chairman Alan Greenspan called the relatively low long-term yields compared to short-term rates a "conundrum," Coats said."Alan basically said that anybody who is going to be involved in fixed income, if you're on the long, is going to lose money and warned everybody to be very careful," Coats said.
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