January 2012
M T W T F S S
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Fitch Cuts Credit Ratings -

Fitch lowered the credit ratings for the sovereign debt of five Euro region nations.  The five nations included Italy, Spain, Belgium, Cyprus, and Slovenia.  The credit rating for Italy was cut to A- and the rating for Spain fell to A.  Italy has the third largest European Union economy.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-27/italy-spain-are-among-five-euro-zone-nations-downgraded-by-fitch-ratings.html

James Sutliff

Energy Department Lowers Marcellus Shale Estimate -

The U.S. Department of Energy lowered their estimate of natural gas reserves in the Marcellus Shale.  The previous estimate of 410 trillion cubic feet has been adjusted to 141 trillion cubic feet.  Energy Department estimates are based on reserves that can be recovered with the current technology.  The Marcellus Shale extends through several states which include New York, Pennsylvania, and Ohio.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-23/u-s-reduces-marcellus-shale-gas-reserve-estimate-by-66-on-revised-data.html

Jim Sutliff

Natural Gas Falls Over 6% -

Natural gas fell more than 6% in trading on Thursday and settled at $2.3220 per 1,000 cubic feet.  Natural gas supplies have steadily increased and warmer than normal weather is expected over the next few weeks.  Gasoline and crude oil fell slightly and heating oil rose 2.26 cents.

To read a related MSN Money article, please click here:

http://money.msn.com/business-news/article.aspx?feed=AP&date=20120119&id=14709809

James Sutliff

Nine European Nations Downgraded -

Standard & Poor’s downgraded the sovereign debt of nine European nations on Friday.  France and Austria lost their AAA ratings and were lowered to AA+.  In addition, the sovereign debt was downgraded for Spain, Italy, and Portugal.  Four European nations that still have a AAA rating are Germany. Finland, Luxembourg, and the Netherlands.  Borrowing costs could rise for the nations that had their sovereign debt downgraded.  U.S. Treasuries rose in trading on Friday and forced yields down to 1.87%.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970204542404577158561838264378.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

Crude Oil Supplies Rise -

According to the U.S. Energy Information Administration, crude oil supplies rose by 5 million barrels last week.  In addition, gasoline inventories rose 3.6 million barrels and distillates increased by 4 million barrels.  All of the inventory increases were well above analyst expectations.  A significant drop in demand levels was a factor in the supply figures.  Crude oil was trading near the $100 dollar mark on Wednesday.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/01/11/us-markets-oil-idUSTRE7AD06820120111

Jim Sutliff

Oil Rises On Economic Growth Outlook -

Crude oil rose to $103.41 during afternoon trading and settled at $102. 24 a barrel.  An improved outlook for US economic growth also sent the stock market to a five month high.  In addition, tensions in Iran and Nigeria raised supply concerns for the near term.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/01/10/us-markets-oil-idUSTRE7AD06820120110

Jim Sutliff

Natural Gas Edges Up -

Natural gas rose slightly at the end of the week and closed at $3.062.  Forecasts of colder weather countered inventory reports which had sent natural gas prices lower.  Colder weather is expected in the Northeast for January 16th through the 20th.    Warmer than normal winter weather has put pressure of natural gas and oil prices this season.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-06/natural-gas-rises-on-cold-weather-forecast-commodities-at-close.html

James Sutliff

Euro Trades Lower -

The European debt crisis has forced the Euro lower in trading over the last few months.  Recent weeks have shown a steeper decline as recessionary concerns mounted and the debt crisis remained unresolved.  The Euro fell below $1.27 in Friday trading before climbing back above that mark.  Recently, the Euro showed weakness against the Yen as well as other currencies.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203513604577144371114758062.html?mod=WSJ_hp_LEFTWhatsNewsCollection

James Sutliff

Federal Reserve To Release Forecasts -

The Federal Reserve has announced that they will release their forecasts for the Federal funds rate.  The move will increase transparency at the Federal Reserve at may help with financial planning for businesses and investors.  Monetary policy expectations should be released at the next meeting on January 24th and 25th.  The Fed funds rate is expected to remain low for the remainder of 2012.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-03/fed-officials-will-make-public-own-forecasts-for-key-rate-at-next-meeting.html

James Sutliff

Silver Rises Two Percent -

Silver started off the new year by gaining two percent in trading on Tuesday.  Silver dropped almost 10 percent in 2011.  Gold also rose slightly and settled up .4 percent at $1,573.70.  Gold finished up 10 percent for 2011.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/01/03/us-markets-precious-idUSTRE7AK1M520120103

Jim Sutliff

Treasuries Fall -

Treasuries fell as prospects improved for the U.S. economy in 2012.  This marked the first decline for Treasuries in four days.  Ten year yields rose dlightly in trading to 1.91%.  Ten year yields fell to as low as 1.67% on September 23rd.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-30/treasuries-fall-for-first-time-in-four-days-on-economy-gain-9-6-in-2011.html

Jim Sutliff

Crude Oil Settles Over $101 -

Crude oil continued to climb and settled over $101 a barrel.  Geopolitical forces pushed crude higher as traders returned on Tuesday.  Supply reports may weigh heavily on trading activity in the next few weeks.  Warmer than normal temperatures in the northeast could increase supplies and send crude oil lower.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203391104577124134269308646.html?mod=WSJ_hp_LEFTWhatsNewsCollection

James Sutliff

Oil Futures Rise -

Oil futures rose to their highest close since December 15th and settled at $99.68.  The increase capped a weekly gain of 6.6% for crude oil.  Positive economic data and tensions in Iran were two factors driving the price of crude higher.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-23/oil-futures-head-for-biggest-weekly-gain-in-10-months-on-u-s-economy.html

Jim Sutliff

Economic Data Drives Oil Higher -

Economic data sent oil prices higher in trading on Tuesday.  Housing starts and building permits rose and data from Europe looked strong.  Also, supplies of crude oil fell 4.6 million barrels last week which was higher than analyst expectations.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/12/20/us-markets-oil-idUSTRE7AD06820111220

Jim Sutliff

Fitch May Downgrade France -

Fitch Ratings indicated that they may downgrade the sovereign debt of seven European nations.  France is one of the European nations facing a downgrade from Fitch.  The six other nations are Belgium, Cyprus, Ireland, Italy, Slovenia, and Spain.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-16/euro-advances-as-juncker-signals-eu-to-meet-imf-loan-deadline-yen-falls.html

James Sutliff