Simultaneous rise in oil prices and falling interest on Treasury borrowings somewhat puzzling

Written by admin on June 30th, 2009

Market United States

Trades in the United States to shut down the growth of stock indices. One of the main reasons, according to experts, was approaching the end of the 1 st half. Many portfolio managers to buy shares in order to prepare reports on the positive outcome of this period.

At the end of the trading index of blue chips Dow Jones Industrial Average rose by 90.61 point, or 1% to 8529 points. The index of wide market SP 500 closed 8.33 point to growth, or 0.9%, at around 927.23 points. High tech Nasdaq Composite closed at 5.84 point growth, or 0.3%, at around 1844 points.

macroeconomic statistics, on Monday was not. The rates on government loans United States dropped sharply, which is slightly strange, as economic recovery is guaranteed to be accompanied by a rise in prices due to the increase in circulation of money. Strange to see how investors on the one hand, in the hope of buying oil to sell it more expensive, but on the other hand buying treasury loans under a relatively low percentage of 3.5% annually. Of course, it is necessary to note the role of central banks buying U.S. treasury direct loans for up to 7 years. Nevertheless, the simultaneous rise in oil prices and falling interest on Treasury borrowings somewhat puzzling.

Oil

Trades in the oil market on Monday, June 29, closed a significant growth of quotations of futures. Traders excite oil prices by more than 4%, in the expectation that the less the negative data on unemployment prostimuliruyut demand for natural resources. At the same time, the press linked the rise in oil prices from Nigerian rebel attacks on pipelines in Nigeria, which in our view is more pessimistic signal, so that such attacks usually occur when another oil price increase does not already.

As a result of trades on NYMEX August futures for the supply of oil mark WTI have grown on 3,3% to $ 71.49 a barrel. During the trading session, oil prices rose to $ 72.40 a barrel.

Asia

Stock Indexes Asia today show positive dynamics against the background of the positive closing of American playgrounds. Japanese Nikkei, adds more than 1.5%, the index of wide market Topix rising 1.8%. Korean Kospi falling to 0.1%. Chinese CSI 300 INDEX traded at zero.

investors continue to ignore all the negative about the state of the economy. For example, the unemployment rate in Japan rose in May to a maximum of five (5.2%) against the background of the reduction of vacancies in the country. In April, the unemployment rate was 5%.

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