Higher energy costs have not yet been reflected in the CPI which showed very benign, incremental increases in May. The report had little impact on the markets which closed little changed with the S&P 500 fractionally lower at just over 910. President Obama proposed sweeping changes to financial regulation including the creation of a consumer protection agency. The changes would put the Treasury Secretary at the top of a regulatory council and would require firms that sell certain derivatives to hold some of their creations in their own account.
The dollar index fell 0.7 percent to 80.24, not helped by a flood of calls from policy makers out of the BRIC summit for global diversification out of the dollar. The dip in the dollar also follows reaction in Asia to yesterday's drop in industrial production, one that some say pushes back the prospect of economic recovery and Federal Reserve rate hikes. Oil firmed 50 cents to $71 despite a strong build in gasoline inventories. Unrest in Iran has had little effect on prices.