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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: quehubo who wrote (28091)	12/14/2003 11:45:20 AM
From: GREENLAW4-7	Read Replies (3) \| Respond to of 206336

I wish Everyone a Happy and Healthy Holiday Season! I will be out of country for Vacation and I won't get an opportunity other then now to wish all contributors all the best. Remember, even if I trade opposite of others we are all here to help one another profit. I also want to thank out troops for thier unwaivering fortitude in their pursuit and capture of one of the most Evil men who walk out fine Earth. One last point, Que, even though you may have me on IGNORE I want you to know you post excellent views and information on the site. Good luck to all!

To: quehubo who wrote (28091)	12/14/2003 12:11:51 PM
From: Ed Ajootian	Read Replies (1) \| Respond to of 206336

Savoring Saddam's capture LONDON (Reuters) - The dollar, U.S. Treasuries and global stockmarkets are likely to get a boost when trading resumes on Monday following the capture of former Iraqi President Saddam Hussein, analysts said on Sunday. Crude oil prices could fall, however, as investors mull the prospect of potentially increased supplies from key oil producer Iraq, and gold prices were not seen straying significantly from their recent trading range. "I would have thought Saddam's capture would be dollar-helpful and helpful for U.S. assets, but also for equity markets generally," said Michael Derks, chief global strategist at Commonwealth Bank of Australia. Some experts warned that support for the dollar would be short-lived, largely because the U.S. government is perceived within markets to be happy with a weaker U.S. currency. But shares were seen extending their recent hard-fought gains after the Dow Jones industrial average and Hong Kong's Hang Seng index both posted their highest closes of the year on Friday. With the FTSE Eurotop 300 index of leading European shares also hovering near its 2003 highs, European stock markets could follow suit next week, analysts said. "It's broadly positive for equity markets. Concerns over the situation in Iraq have weighed on sentiment and help explain why shares haven't rallied by as much as they could have in the face of some pretty positive economic data," said Hilary Cook, director of investment strategy at Barclays Stockbrokers. "U.S. and UK markets could have the most to gain because war is expensive," she added, highlighting nagging worries in the market that occupying American and British forces might get bogged down by a worsening security situation in Iraq after Saddam Hussein's regime was toppled earlier this year. The Israeli stock market, which was open on Sunday, reacted positively to news of Saddam's capture. The Tel Aviv 25 index was up about three percent in afternoon trade. Analysts said they expected the dollar to benefit from the news, but probably only in the short term. "If the figurehead for the opposition is removed then it should help reduce tensions in Iraq, and a general easing of geopolitical tension is positive for the dollar," said Ryan Shay, senior international economist at Banc One. Neil Parker, a strategist at Royal Bank of Scotland, said he saw the greenback pulling back on Monday from its record lows against the euro towards the "low $1.21s" and recovering towards 108.50 yen. The dollar on Friday closed at around $1.2260 against the euro and at about 107.66 yen. "This will increase U.S. credibility in the region and could help end terror attacks, or at least put a halt to some of them, but the underlying tone remains dollar-negative, and not for reasons related to Iraq," Parker said. The market remains concerned about a widening U.S. current account deficit, and there is a feeling within the market that the U.S. administration is content to see the dollar fall during an election year, in order to boost its exports and reduce its imports. As long as there are worries about the future direction of the dollar, foreign investors funding the U.S. deficit could continue to demand a premium for U.S. Treasuries, analysts said. Analysts also said Saddam's capture, while significant, did not necessarily mean an end to attacks on U.S.-led forces in Iraq or against Western interests generally. That point was also made on Sunday by the top U.S. military official in Iraq, Lieutenant-General Ricardo Sanchez and by analysts expecting a fall in the price of oil. A reduction in sabotage attacks on the pipeline that carries Iraqi oil to the Turkish Mediterranean would cut oil prices on the prospect of a resumption in exports from the pipeline. "The capture of Saddam is negative for oil prices, but the market will wait to see if the attacks continue after his arrest," said Tom James of Tokyo Mitsubishi International. James reckoned the detention of Saddam would knock at least 50 cents off U.S. crude, which was driven above $33 a barrel on Friday, close to a post-Iraq War high, by strong natural gas prices. Similar concerns were also seen providing underlying support to the gold price, which has risen to near eight-year highs as the dollar's status as an alternative safe-haven investment has waned. "Gold may well drift lower over the next few days but the overall fundamental situation hasn't really changed," said John Reade, metals analyst at UBS Investment Bank. 12/14/2003 09:29 GMT-5 ********************************************************** Although this will have a detrimental effect on oil prices and probably natty prices too, I gotta say this is the best Christmas present we coulda dreamed for. Hopefully this will hasten the time when our troops can return from Iraq.