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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG -- Ignore unavailable to you. Want to Upgrade?

To: Wade who wrote (1744)	7/28/2004 12:10:27 AM
From: Wade	Respond to of 48092

Here is a good one: biz.yahoo.com Reuters Investor doubts on US asset returns drag on dollar Tuesday July 27, 2:14 pm ET By John Parry NEW YORK, July 27 (Reuters) - Investors may lodge their money in a currency other than the dollar until the impact on U.S. stocks and bonds of an expected string of Federal Reserve interest rate increases becomes clear, analysts said. ADVERTISEMENT Recent capital flows data hint that wariness about Fed rate rises is giving some global investors pause. That caution will probably cap dollar gains over the medium term in spite of a fairly robust U.S. economic outlook, analysts said. Among currencies investors are favoring for now are those of Britain and Australia, where central banks are approaching the end of rate hiking cycles rather than recently embarking on one as has the Fed, analysts said. "When tightening, bond prices go south," said Jack Malvey, chief global fixed income strategist with Lehman Brothers in New York. "You would want to wait out the Fed tightening machine in another currency. ... I would not be surprised to find over the next several months that could create additional pressure on the U.S. dollar," Malvey added. Rising U.S. interest rates are burnishing the appeal of dollar-denominated cash and money market instruments after the Fed, the U.S. central bank, made its first rate increase for four years in late June. But prices of longer-dated instruments such as U.S. bonds will fall as their yields rise; a risk which is deterring investors over the medium term. The benchmark 10-year Treasury bond (US10YT=RR) yield, trading around 4.58 percent on Tuesday, was below its June peaks around 4.88 percent but could move higher again if U.S. economic data for July prove to be strong. Bond yields and prices move inversely. Although the dollar is flitting in a broad range, the euro could yet revisit its lifetime highs against the U.S. currency above $1.2900 it reached in February, some analysts expect. Early afternoon on Tuesday in New York, the euro was trading around $1.2060 (EUR=). Recent data underscore the difficulty the United States faces in drawing enough foreign capital to offset its wide current account deficit, a broad measure of its global trade. Treasury Department data showed foreign investors sharply slowed their pace of investment in the United States in May, when net capital inflows totaled $56.4 billion, the smallest amount of capital investment inflow since October 2003. Foreigners' net buying of U.S. Treasury bonds and notes fell in the month to $21.9 billion from $35.3 billion in April. Foreign investors were also net sellers of U.S. stocks for a third straight month in May. "That data is definitely a concern," because it indicates a decline in portfolio inflows to U.S. assets, said T.J. Marta, currency strategist with Citibank in New York. "Going through the slow summer months we feel the downturn in that, coupled with the trade imbalance, is going to weigh on the dollar," Marta said. U.S. stocks are trading at their lowest since late May and recent proprietary data from some big custodian banks indicates tepid foreign interest in U.S. equities. Bank of New York data show that non-U.S. investors were net sellers of $653 million of U.S. equities last week, reversing net purchases of some $1.24 billion the week before. One of the biggest threats to the dollar is the apparent disconnect between a U.S. economy that could grow around 4 percent in the second half of the year and a U.S. stock market recovery that appears to be sputtering, some reckon. On Monday, the Dow Jones industrial average (^DJI - News) closed at its lowest since late May, while U.S. technology stocks fell to prices not seen since October on worries that corporate profit growth may slow. "The stronger economy needs to be reflected in some market instrument. ... If the equity markets are not going anywhere, that takes away the argument for being in the dollar," said Mike Casey, portfolio manager and president of Discretionary Global Management, a New York-based company established to manage hedge funds.

To: Wade who wrote (1744)	7/30/2004 8:56:36 AM
From: Wade	Read Replies (1) \| Respond to of 48092

POG surged 4.6 to 391.7. This is a good starting point for a rally. <G> News: biz.yahoo.com Reuters Economy Weaker Than Expected in 2nd Qtr. Friday July 30, 8:33 am ET WASHINGTON (Reuters) - The U.S. economy braked more sharply than expected in the second quarter as shoppers curbed their free-spending ways amid a sharp advance in energy prices, government data released on Friday showed. ADVERTISEMENT U.S. gross domestic product, a measure of total output within the nation's borders, climbed at a modest 3 percent annual pace in the April-June period after an upwardly revised 4.5 percent clip at the start of the year, the Commerce Department said. Wall Street economists had looked for GDP to advance at a 3.6 percent pace after the previously reported rise of 3.9 percent in the first quarter. While the latest quarter proved weaker than expected, some recent signs suggest the economy's pace has already quickened. ...more..