Stocks
Global Stock Indexes were mostly lower today with the CAC 40 one of the lone exceptions and posted a small 0.10% gain to 3670. The biggest losers were the FTSE which dropped 46 points to 5320 and the Nasdaq which a little over 1.0% to 1106. The FTSE was hit by Corporate updates that were viewed negatively by traders. On the other hand, US firms continued to issues better than expected earnings today, but stocks were hit by a worse than expected Durable Goods Orders figure and a less than appealing Fed Beige Book report.
Additionally, US stock traders have been watching the 200 day average for the S&P 500. The index continues to stall as it hits this critical technical level. As such, until this level is breached, upside momentum may be limited.
Commodities
Agricultural commodities were the big winners today and were led by Corn and Wheat which both rallied more than 3.5%. They reacted to reports that European and Russian supply would be diminished due to droughts that have damaged crops. As such, traders are expecting increased demand for US products as a result.
Elsewhere, after a big drop yesterday in precious metals, Gold and Silver prices were stable as both traded within tight ranges. Gold was up $3.00 to 1163/oz while Silver dropped 5 cents to 17.55/oz. The lack of volatility in the sector occurred even as CPI results from Australia and Germany showed a continuation of tame global inflation. Additionally, Crude Oil prices down around 0.5% to 76.80. However, with Crude Oil Inventories showing a huge build of 7,300,000 Barrels, versus a -1,400,000 consensus, the small drop in prices was viewed as a bullish signal for Crude Oil.
