The Dow Jones Closes Up 45.5pts

March 19th, 2010  by Bryden Elssmann

Closing Data

	Current	Change	%
Dow Jones	10,779.17	45.5	0.4%
NASDAQ	2,391.28	2.19	0.1%
S P 500	1,165.82	-0.39	-0.0%
FTSE 100	5,642.62	-2.01	-0.0%
Nikkei 225	10,744.03	-102.95	-0.9%
ASX 200	4,858.00	-5.1	-0.1%
COMEX Gold - Dec 09	1,127.50	3.3	0.3%
COMEX Silver - Sep 09	17.422	-0.101	-0.6%
COMEX Copper - Sep 09	339.55	-2.25	-0.7%
WTI Spot	82.41	-0.52	-0.6%
AUD-USD	0.921	-0.0026	-0.3%
Aluminium	2,242.50	29	1.3%
Copper	7,488.00	146.5	2.0%
Lead	2,245.00	50.5	2.3%
Nickel	22,125.00	125	0.6%
Tin	17,555.00	45	0.3%
Zinc	2,316.00	38	1.7%

US Markets

The Federal Reserve may raise the discount rate, charged on direct loans to banks, before the next meeting of the Federal Open Market Committee on April 28, economists said. “It’s going to happen at some point,” said Michael Feroli, chief U.S. economist at JPMorgan Chase & Co. in New York. “Whether it’s today, whether it’s next week or next month is hard to say.”

U.S. stocks fluctuated as speculation the Fed will raise the discount rate tempered gains spurred by further evidence that the economy is strengthening without stoking inflation. The Standard & Poor’s 500 Index fell 0.1 percent to 1,165.52 at 3:59 p.m. in New York. Dow Jones closes up 45.5 pts to 10779.17.

The US economy should continue to expand without inflation increasing. If inflation increased this could signal the Federal Reserve to raise interest rates.

Consumer prices in the US have remained unchanged over February which is the first time they haven’t moved since March 2009. Manufacturing has accelerated and fewer Americans have filed for jobeless benefits.

European Markets

The euro weakened for a second day against the  US Dollar and Yen in the longest stretches of decline in almost a month on concern Greece will fail to secure financial assistance from the European Union.

The Greek Prime Minister, George Papandreou, said Greece could possibly turn to the International Monetary Fund to try to overcome their debt crisis unless EU leaders agree to set up a lending facility at a summit March 25-26. However, the IMF option has already been dismissed by European Central Bank President Jean-Claude Trichet and French President Nicolas Sarkozy, who say it would show the EU can’t solve its own crises therefore being detrimental.

The euro fell 1 percent to $1.3608 at 5 p.m. in New York, from $1.3738 the day before. It fell 0.9 percent to 122.99 yen, from 124.06 yen. The dollar was little changed at 90.39 yen, compared with 90.31 yen. The euro’s last two-day stretches of depreciation versus the dollar and euro both ended Feb. 23.

Asian Markets

The Yen is stronger and the “dollar” is also stronger over the last 24 hours.

The Bank of Japan has made a decision to double the size of its liquidity program for banks which could potentially prove more effective in placating the government than stemming deflation. It increased its three month lending facility for banks to 20 trillion yen ($220b) in a 5-2 vote, which could assist to reduce borrowing cost and assist in increase corporate sentiment.

Australian Markets

The Australian market is attracting more than $130 billion of investment in some of the world’s richest natural gas fields to supply buyers in Japan and China.

Commodities

Commodity prices appear to be firmer.

Gold has been quite strong and traded to $1132/oz in trading yesterday before closing to $1127.5/oz.

Crude Oil also remains quite firm and in an OPEC meeting in Vienna on Wednesday, Secretary General of the Cartel, Mr. El-Badri commented that production of oil has been inching upwards as a result of individual members cheating their quotas.

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