Tuesday, March 20, 2007

Morning Market Comment

The headline number on the housing data looks great - 9% jump in February Housing Starts! But look under the hood and the report is another clunker with that 2-1/2 percent slide in building permits to a 1.532 mln annual rate.

The British Pound is surging today - Pound futures are up 160 points after higher than expected UK inflation figures - 2.8% gain vs expected 2.7% - sparked speculation the Bank of England may lift interest rates another quarter point in April.

Japanese Yen futures are up 16 points. As expected the Bank of Japan left its benchmark rate at .5%, with some BOJ watchers thinking the BOJ signaled there will not be a rate move until after Japanese Parliamentary elections in July. IF, if that's the case then the carry trade vs stock market indicator may suddenlybecome an unreliable indicator - a situation to watch closely.

For now however Yen vs stock market and overall dollar condition vs stock market appears to be quite valid. With the dollar moving lower, stock futures are struggling amid the weak building permits figure.

There's even normalcy in the gold futures market, where a weak dollar is translating into a powering up of gold and other metals. I have been long gold futures since Sunday night.

A few notable movers...
Accredited shares soar on loan deal
Affiliated Computer Founder, Cerberus Bid to Buy Firm ...

A look at analyst calls a bit later in the hour.

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