Saturday, March 28, 2009

Market Reflections 3/27/2009

A slip in personal income tripped a run of profit taking in the stock market where the S&P 500 fell 2% to 815.93. But there was also good news in the session, at least out of the UK where reports said Barclays would successfully pass a stress test, a reminder from earlier in the month when both Citigroup and Bank of America said they were running at a profit.

Profit taking hit oil as did supply-cut news from OPEC members Ecuador and Venezuela. Supplies are tightening right as inventories are peaking in what some are calling a "tie" between supply and demand. May WTI ended just above $52. Gold fell back $15 to $925.

Much of gold's dip was due to strength in the dollar which jumped more than 2 cents to end at $1.3290 against the euro. The euro was hit by profit taking and by weak economic data from Europe. Treasuries were little changed but the Fed did buy $7.4 billion of mid-maturity issues, part of its effort to lower mortgage rates.

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