commodities

Earlier this afternoon, the Federal Reserve left its benchmark interest rate unchanged and reiterated that interest rates would remain low for “an extended period”. In its statement, it also mentioned that inflation remains subdued, and that the weak employment situation seems to have stabilized.

Some good research from China Knowledge this week. About how southeast Asia is becoming China's trading partner of choice.

China's trade with the Association of Southeast Asian Nations has grown from just $8 billion in 1991 to $2.1 trillion in 2009.

Shrugging off some lingering reminders of the credit crisis and recession, investors last week marked the one-year anniversary of the bear market low by pushing many benchmark equity indices to cycle highs.

Recently, the Federal Reserve raised the discount rate after nearly 14 months from 0.5% to 0.75%. This article explains if more rate hikes in store and what this rate hike means for stock, bond, commodity, and cash investments. Read Federal Reserve Discount Rate and Your Investment Decisions .

Commodities are a TAX. They are the worst kind of tax because they flatly (not progressively) charge every man woman and child in this country more money for the same food, fuel, shelter and clothing that they had to have last week in order to live.

As investors vacillated about the impact of developments in Greece, together with the uncertainty of strong fourth-quarter economic data possibly not carrying over to the first quarter, stock markets experienced two sharp sell-offs and two rebound rallies, limping to small gains on Friday but ending the week modestly down.

There has been some unusual action on the Japanese commodities markets that demands a comment.

I mentioned earlier this week that over the last two weeks the Japanese have revved up several new structured investment products tracking commodities.

There are now some "seismic signals" registering in those markets, showing these new ETFs and trusts may be having an immediate impact.

What's more important: upside or stability?

That debate constantly rages amongst commodities producers. Especially when it comes to deciding whether to sell gold, copper or oil at spot versus long-term pricing.

The Year of the Metal Tiger is upon us. Traditionally, the Lunar New Year is a festive period where the Chinese celebrate by giving angpows, buy new stuff after doing a thorough spring cleaning, clear outstanding debts and look forward to bountiful rewards. However, given that the tiger is a ferocious animal, this year is generally not good for risky ventures.

China appears to be slumping under late-stage signs of overcapacity with the South China Mall only 1% occupied and the entire city of Ordos vacant along with 50% of the office space in Beijing standing empty, China is now a country that has 30Bn square feet of construction in progress for a country with "only" 1.4Bn people.

Stock Indices, gold and crude oil are trading relatively flat overnight. Yesterday’s strong buying has been met with uncertainty following the inability of the European Union to reach a loan guarantee agreement with Greece.

This is a short article about Crude Oil. Technical analysis points to a potential short-term bottom. Enjoy!

After starting the week on a firmer note, oil prices fell sharply toward the end of the week in a general market sell-off as investors sought the dollar as a safe haven amid worries about European Union economies.

As widely reported, the fall in WTI was part of a larger sell-off in commodities. Triggered by strengthening of the U.S. dollar.
With all the focus on yesterday's selling, there was less press on the things being bought. Most notably U.S. Treasury notes.