Wednesday, May 10, 2006

Quick Overview

  • As expected the Fed raised the fed funds rate to 5 percent and suggested they may not be finished with the nearly two-year run of increases.

  • The U.S. Treasury Department ruled on Wednesday that China was not a currency manipulator but pledged to "actively and frankly" push Beijing toward faster exchange-rate flexibility that would let its yuan rise in value.

  • Japan's official reserve assets April, out at $860.2B vs. $852.0B expected.

  • Japans index of "leading" indicators was down 0.2% in March to 101.6.

  • The World Bank increased its growth estimate for China's economy this year from 9.2% to 9.5%.

  • There are rumors in the market that China could quadruple its gold reserves to around 2,500 tons from 600 tons currently.

  • There was talks in the market of Iran would raise EUR reserves.

  • Bloomberg news reported the main shaft at Barrick Gold's Deep South mine in South Africa was damaged and may take up to a year to repair. Last year, the mine produced 469,000 ounces of gold, but that may now be cut in half.

  • Grupo Mexico closed its San Martin copper mine due to an unresolved strike.

  • The U.S. Department of Energy said that:
    Supplies of crude oil supplies were up 300,000 barrels at 347.0 million barrels.
    Supplies of unleaded gasoline were up 2.4 million barrels
    Supplies of heating oil were up 400,000 barrels.

  • Canada's wheat stocks totaled 18.8 million tons on March 1st, up 22% from a year ago.

  • Canada’s canola stocks totaled 5.1 million tons, up 36% from a year ago.

  • Divisions emerged on Capitol Hill on Wednesday over whether the U.S. should suspend or lower fuel ethanol import tariffs in the face of high gasoline pump prices.

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