Oil prices surged to hit $93.49 a barrel today as Valero Energy Corp, the biggest refinery in the US, was forced to shutdown its Delaware power plant as harsh weather conditions inflicted a power failure. Turmoil in the energy sector lingered as Exxon Mobile Corp continued to battle with Petroleos de Venezuela over the seizure of its multi-billion dollar oil production project and won a court case to freeze $12B of oil assets. President Chavez retaliated against the ruling, and threatened to cut US oil exports as the country is ready to lead an economic war against the US. Gold prices also soared higher today as rising inflation took hold of investors, and increased the demand of gold in order to hedge against inflation. Gold rose just under $6 as it hit an even $928 an ounce, while platinum climbed to a record high as production was lowered by Anglo Platinum Ltd, the world’s largest producer.
Investor sentiment in the US continues to show resilience as an intraday reversal helped the DJIA to post positive gains in today’s session amid AIG’s scandal concerning the valuation of its derivatives. The DJIA advanced a total of 57.88 points to reach 12,240.01, with AIG, Citigroup, and JP Morgan Chase coming out as the leading losers, while GM topped the big 30 as its shares climbed 5 percent. The broader S&P500 also rose a modest 7.84 points to reach 1339.13, with Yahoo shares climbing 2.5 percent as the board rejected Microsoft’s $44.6B bid, and stated that the bid “substantially undervalues” the internet titan.
US Treasuries followed the volatile trading session in the securities market as yields were dragged down during the morning, but prevailed throughout the afternoon as 10-Year yield inched up to 3.62 percent, while the 2-Year yield rose to 1.91 percent. The US economic calendar remained bare until tomorrow’s release of the ABC Consumer Confidence Index, but Wednesday and Thursday will be the days of focus as Retail Sales, Initial Jobless Claims, and the Trade Balance figures are expected to show minor improvements in the slowing economy.
Investor sentiment in the US continues to show resilience as an intraday reversal helped the DJIA to post positive gains in today’s session amid AIG’s scandal concerning the valuation of its derivatives. The DJIA advanced a total of 57.88 points to reach 12,240.01, with AIG, Citigroup, and JP Morgan Chase coming out as the leading losers, while GM topped the big 30 as its shares climbed 5 percent. The broader S&P500 also rose a modest 7.84 points to reach 1339.13, with Yahoo shares climbing 2.5 percent as the board rejected Microsoft’s $44.6B bid, and stated that the bid “substantially undervalues” the internet titan.
US Treasuries followed the volatile trading session in the securities market as yields were dragged down during the morning, but prevailed throughout the afternoon as 10-Year yield inched up to 3.62 percent, while the 2-Year yield rose to 1.91 percent. The US economic calendar remained bare until tomorrow’s release of the ABC Consumer Confidence Index, but Wednesday and Thursday will be the days of focus as Retail Sales, Initial Jobless Claims, and the Trade Balance figures are expected to show minor improvements in the slowing economy.