Friday, July 6, 2012

News Feed 6th July 2012

"-U.S. stocks closed lower Thursday as investors assessed a poor report on the services sector along with worries about global growth, underlined by three central banks’ moves to lower borrowing costs. The Dow Jones Industrial AverageDJIA -0.36%  closed down 47.15 points, or 0.4%, at 12,896.67. The decline was an improvement from a 92-point deficit early in the session, but down from when the index briefly climbed into positive territory late in the session to reach 12,961.30. The S&P 500 Index SPX -0.47%  declined 6.44 points, or 0.5%, to close at 1,367.58, with financials and energy stocks as the worst performers. Earlier in the session, the S&P 500 touched a low of 1,363.02."


"-The People's Bank of China cut its benchmark lending and deposit rates late Thursday, its second rate cut since early June, according to reports. The Chinese central bank lowered its one-year yuan deposit rate 25 basis points and its one-year lending rate by 31 basis points, according to Dow Jones Newswires. The central bank also announced more relaxed rules on lending, allowing bank lending rates to fall to 70% of the benchmark rate, down from 80% currently."


"-August Soybeans finished up 53 1/2 at 1583, 2 1/2 off the high and 38 1/2 up from the low. November Soybeans closed up 51 3/4 at 1526 1/2. This was 33 1/2 up from the low and 2 1/2 off the high. August Soymeal closed up 18.6 at 465.8. This was 13.8 up from the low and 0.7 off the high. August Soybean Oil finished up 1.19 at 54.33, 0.06 off the high and 1.02 up from the low. November soybeans gapped higher at the opening bell and seemed to gain in strength through the day to finally close near the highs of the session. The July contract gained on the August and November contracts after no deliveries were made. Soybean meal and oil both traded sharply higher into the closing bell. Continued concern over decreasing new crop soybean yields due to blistering temperatures this week supported the soybean market to new highs on the day. The forecast calls for cooler temperatures next week and a chance for better rainfall in dome areas, but confidence in those forecasts remain low. Afternoon weather maps call for a little warmer 1-5 day forecast for the northern U.S. and extreme heat is expected to stick around for another 3-4 days in central and southern Midwest. Changes also include a chance for better rainfall in the Midwest and western U.S. plains in the 6-10 day map. Brazil's government announced that their 2011/12 soybean crop would amount to 66.37 million tonnes, which is unchanged from their last estimate. Outside markets offered minimal resistance to soybeans, as the U.S. Dollar surged over 1% on the day and stocks were marginally lower. Traders continue to anticipate demand shifting to the U.S. market following one of the worst Brazilian droughts in years."


Main headline for today: Bank Of China decided to cut their interest rates thus further easing their monetary policy. China equity market is likely re-act positively from this rate cut. 


Information and opinions contained in this report are for educational purposes only. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness.

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